Which One to Choose: Pre-Selling or Ready for Occupancy?

Homebuyers can now have a wider option in purchasing their dream home or just investing on a house and lot or unit. Aside from figuring out the location or home model of the unit you would like to buy, you might also like to consider on which one is much favorable to you—availing a pre-selling or ready for occupancy home unit.

The word “Pre-Selling” is pretty much famous nowadays in real estate industry. It means that the house and lot or property that you are eyeing to buy is either not yet built and basically, still just a blueprint of the project. It could also be something that is currently on the process of building and will still be completed in the near future.

Ready for Occupancy or RFO properties, on the other hand, means a unit where you can move in anytime you want as long as you already settled all the required documents and payments prior to your occupancy.

Thinking which is the better home to invest in, pre-selling or ready-for-occupancy? Well, you might want to consider these factors first before making your final decision. 

Pre-Selling

When we say pre-selling, again like we mentioned earlier, is a property that doesn’t have any ground breaking yet and not yet built. It could also be a community that the construction is still in progress.

In pre-selling, community developers usually offer low introductory prices for their unbuilt properties or units. So, if you have a tight budget for your home investment and you’re not in a hurry to move in, then, you might want to consider this option. Just be reminded that it may takes a few years before you can literally have your own house.

In terms of payment terms, pre-selling units and properties are flexible. The down payment for the unit could be paid in one or two years or you can even choose the spot cash down payment. You could even spread over the amortization for several months before the date of turnover.

The only downside of this would be the date of your moving in. It usually depends on the type of the property or to the developer’s discretion. Mostly, the time frame for this is between less than a year to more than four years.

Ready For Occupancy

Like we’ve said earlier, ready for occupancy or RFO properties are already built and existing. That’s why these kind of units are usually more expensive due to the increase in the market prices from the time it was built.

The payment terms for RFO properties are typically spot cash full payment or with a shorter duration. Some units could also be offered as rent to own so if you have the savings for this kind of home investment, and would like to move in as soon as possible, then this option is a better deal for you.

What’s the Verdict?

Both options have their pros and cons to the homebuyers. The most important factors that you would need to consider first would be your budget for this home purchase and if it would satisfy your needs in having your own house and lot.

Generally, if your purpose in purchasing the property is for investment, then it would not hurt you to choose a pre-selling property and wait a bit longer while enjoying a lower value for the unit that you want to own.

But, if it’s for personal use and it’s vital for you to have the turnover of the property as soon as possible, then you might need to save up more money to invest in a ready for occupancy home unit and enjoy the comforts of having your own space.

Lastly, always keep in mind the safety, security, and accessibility of your potential community in whichever options you will choose and in starting your dream home.