Things you Need to Know in Pre-selling House and Lot before Investing

Pre-selling is used in the Philippines when a developer releases a new project for sale. The project has not been built yet and is usually slated for completion in 12 to 36 months. This means that the buyer is essentially paying for the property in advance. In most cases, the buyer will make a down payment of 10-20% of the purchase price, with the remaining balance due at completion. Developers usually do this to generate funds for the project.

Pre-selling a house and lot has its own set of advantages. For one, you don't have to worry about risks like sudden changes in construction plans which may occur during the actual development process. Pre-selling also allows buyers to choose the specific unit they want to purchase, select the best location, and even make changes in the unit's specifications according to their liking. Moreover, pre-selling allows buyers to avail of lower prices since developers offer significant discounts for those who avail during the pre-selling stage. Lastly, it is more convenient to pay for a pre-sold property in installments over some time before turnover than shouldering the entire amount all at once when the property is already completed. Simply put, pre-selling has its benefits. That's why it's worth considering if you're planning to purchase a house.

However, there are also some disadvantages that they need to be aware of. For one, there is always the possibility that the project will not push through. This can happen for several reasons, such as the developer being unable to secure the necessary permits or encountering financial problems. If this happens, buyers will lose their investment and have to look for another place to live. Another disadvantage of pre-selling is that the project can take a long time to complete. This is because developers usually start selling units long before construction begins. As a result, buyers may have to wait several years before moving in. Finally, pre-selling can also be more expensive than buying an already-built unit. This is because developers typically offer early buyers discounts to generate interest in the project. Research the developer and thoroughly review the contract before making any commitments.

There are a few things to remember if you are interested in pre-selling a property. First, make sure that you are familiar with pre-selling and The Real Estate Pre-Selling Agreement (REPA) before signing any contracts. Second, do your research on the builder or developer to ensure that they have a good reputation and will be able to deliver on their promises. Finally, be prepared to make a down payment of at least 10% of the purchase price, as this is usually required when pre-selling a property. By following these tips, you can be sure that you will have a positive experience when pre-selling your next home.

Before you invest your hard-earned money in a pre-selling property, there are a few things you need to keep in mind to ensure you're getting a good deal. 

For one, make sure to do your research on the developer. Check their track record and see if they have a good reputation. It's also essential to ensure the project has all the necessary permits and approvals. Otherwise, you might end up with a property that's not even legal. Another thing to consider is the location. Pre-selling units are often located in areas that are not yet developed, so there's a risk that the property's value might not go up as much as you expect it to. Please research the area and talk to real estate experts to better understand whether it's a good investment. Finally, ensure a realistic view of when the project will be completed. Many developers give unrealistic completion dates to attract buyers.

If you're looking to invest in a property, you must do your research first. And what better way to learn about a particular investment than to talk to the experts? Contact us today and follow our social media accounts for more information on real estate investments. We can help make sure that you make an innovative and profitable one.