Preselling VS. Ready for Occupancy

1. What is the status of construction?

Pre-selling:

• No groundbreaking yet
• Not yet built
• Construction in progress

RFO:

• Property is already built and existing.

2. How much does it cost?

Pre-selling:

• Low introductory price

RFO:

• More expensive because of the growth in market prices since it was built.

3. How long is the move in period?

Pre-selling:

• Depending on the type of property (condo, townhouse, or house and lot) or the developer’s discretion, time frame is between less than a year to more than four years

RFO:

• Homeowner can move in immediately after purchase.

4. What are the payment terms?

Pre-selling: Flexible

• Down payment payable in one or two years
• Spot cash down payment
• Spread out amortization

RFO:

• Typically spot cash full payment, or if staggered, duration is shorter
• Can be rent-to-own

5. Any other customization or advantages?

Pre-selling:

• There are promos and discounts, if you pay in full.
• You can customize the unit according to your preferences.
• Have newer, more state-of-the-art amenities and facilities.

RFO:

• If available, home improvements
• Discounts if rush sale

6. Which unit can I choose?

Pre-selling:

• First come, first reserve
• You can select since these are not yet built.

Note: If you are purchasing a condo, the higher the floor, the more expensive the property.

RFO:

• What is only available/offered.

7. Ideal for:

Pre-selling:

• Investment

RFO:

• Personal Use

8. What are the cons?

Pre-selling:

• Risk of project might not being completed or there’s delay in turnover.
• Finished unit does not meet your expectation.
• Your needs or financial situation might have change by the time the project is near or upon completion.

RFO:

• Requires higher cash out
• Fewer available units
• Most of the best or prime locations are already taken