A Buyer’s Guide: Pre-selling vs Ready-For-Occupancy Unit
The real estate business is never going to be left behind despite the COVID-19 crisis. With new structures being built and condominium units situated everywhere you go, the real estate industry proves to always be there no matter what.
The COVID-19 crisis has enabled real estate developers to offer various options for homebuyers today so they can either save up for their dream home or instantly move into their preferred location. If you are looking for a property, you might be choosing from either pre-selling or ready-for-occupancy (RFO) units.
Pre-selling condominium units are buildings that have been fully designed but have yet to be built or the construction is ongoing.
RFOs are a good choice if you want to move in right away. They’re fully built (sometimes furnished) and ready for turnover.
In choosing between pre-selling and RFO units, many advantages and disadvantages should be taken into consideration. Factors such as status of construction, price, and move-in period among others should always come first before choosing the best home for you.
Here are some of the things you should know to better understand the difference between pre-selling and RFO units:
- Status of construction
Pre-selling: Not yet built; Construction in progress
RFO: Property is already built and existing; Actual project development; Feel and see the full project development before buying
Pre-selling: Low introductory price
RFO: More expensive due to growth in market price since it was built
- Move-in period
Pre-selling: Less than a year to more than four years
RFO: Can move in immediately after purchase
- Payment Terms
Pre-selling: Light pay plan; Pay fees and down payments in staggered payments
RFO: Cash Out; requires paying fees and down payments in few months or by cash
- Choice of Units
Pre-selling: Wide variety of choices; you don’t have to worry whether it’s taken or not
RFO: Minimal choices; fewer available units to choose
- Ideal Use
RFO: Personal use
- Good For
Pre-selling: Investors, Young professionals, OFWs
RFO: Starting families or individuals eager to move in, Retirees or older couples who want smaller space, Expats, foreigners or immigrants looking for a place to stay, Personal use
- Other advantages
Pre-selling: There are additional discounts if paid in full amount; Can customize the unit according to preferences; Newer amenities and facilities; No need for renovations, request improvements upon construction
RFO: If available, home improvements; Discounts if rush sale; Enjoy the development; Amenities are readily available
Now that you know the difference between the two, do you prefer to wait on a pre-selling condo? Or do you need a home to move into now?