Understanding Pre-Selling Properties
Risks and Rewards for Buyers
Why Pre-Selling Properties Are Gaining Popularity
Buying your first home or investing in property can be both exciting and overwhelming. One option that’s gaining popularity in the Philippines is pre-selling properties. These are units sold by developers before they are completed or even built. While the idea of getting a brand-new condo or house at a lower price sounds great, it also comes with its own set of risks.
If you’re a buyer who’s considering this path, here’s a detailed look at the rewards and risks of pre-selling properties to help you make an informed decision.
The Rewards of Buying Pre-Selling Properties
1. Lower Prices and Flexible Payment Terms
One of the biggest advantages of pre-selling is the lower price compared to ready-for-occupancy (RFO) units. Developers often offer introductory rates, discounts, and easy payment schemes to attract early buyers. This makes it ideal for first-time homebuyers or young investors working on a budget.
2. Higher Returns on Investment (ROI)
Buying early often means buying cheap. And when the property is completed and the market value appreciates, your investment could grow significantly. Some investors even flip their units—selling them at a higher price before or just after turnover.
3. More Unit Choices
When you buy during the pre-selling stage, you get first dibs on the best units—corner views, higher floors, or those near amenities. It’s like choosing the best seat in the house before everyone else.
4. Customization Opportunities
Some developers allow early buyers to make requests for minor layout adjustments or finish preferences. This gives you a bit more control over your future home compared to RFO units.
The Risks of Buying Pre-Selling Properties
1. Construction Delays
Let’s face it—delays happen. Whether due to permit issues, labor shortages, or economic challenges, your unit may not be ready on the promised turnover date. For buyers planning to move in on schedule, this can be very frustrating.
2. Developer Reliability
Not all developers are created equal. Some may overpromise and underdeliver—or worse, abandon projects altogether. That’s why it’s crucial to research the track record of the developer before signing anything.
3. Quality Concerns
What you see in the showroom may not always match what you get in real life. Some buyers report that actual finishes or layouts vary from what was promised. Reading the fine print in your Contract to Sell is a must!
4. Limited Financing Options (Initially)
Since the property isn’t built yet, some banks may be more conservative in financing your loan. You might be required to pay the full down payment first before applying for a housing loan closer to turnover.
How to Protect Yourself as a Buyer
• Research the developer’s history and completed projects
• Check DHSUD approval – The developer must have a license to sell
• Visit the site regularly to monitor progress
• Read the contract thoroughly, especially the clauses on turnover and penalties
• Talk to current buyers or join online forums to get real feedback
Final Thoughts
So, is buying a pre-selling property worth it? Depende sa’yo. Kung investor ka looking for a lower entry price at mataas na potential gains, it can be a smart move. Pero kung ready ka nang tumira agad, or ayaw mo ng uncertainty, baka mas bagay sa’yo ang RFO.
Ang importante, maging maingat, mag-research nang mabuti, at wag basta-basta padadala sa sales talk. Tandaan mo, bahay ‘to—hindi lang luho, kundi pangarap din.
Ready ka na ba to buy smart? Tara, usap tayo!
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