Pre-Selling or RFO unit still owned and being sold by the Developer. The following material is from http://www.avidaland.com/pursuitofpassion/
"Because the Philippine real estate market is on a steady incline, condominiums and villages are being developed left and right in major cities of the country. Each developer offers competitive rates and promos to attract buyers and investors. As a homebuyer, you need to know what’s at stake when looking at pre-selling condos or ready-for-occupancy (RFO) condo or house & lot units.
A ready-for-occupancy condominium unit or house & lot is already completed and ready to be turned over to the new owner. Once the purchase is fulfilled, and all the necessary requirements and paperwork have been completed, the new homeowner can immediately move in. An RFO unit is a brand new unit left unsold during the pre-selling phase.
On the other hand, a pre-selling condo or house & lot unit is being sold before it is ready to be turned over to the new owner. In its pre-selling stage, the condo or house & lot is being sold in different stages such as before it is completed, during its construction, or even before its groundbreaking. Simply put, the unit is not yet built or is still under construction at the time the unit is purchased.
So, is it wise to buy a pre-selling unit or is a ready-for-occupancy unit the better option? This infographic provides comparative information between pre-selling and RFO units so you can decide which option is best for you."
Infographic by: http://www.avidaland.com/pursuitofpassion/finance-investments/pre-selling-vs-rfo-units-buyers-guide/
Tips when Buying a Pre-selling Property
- • Choose a reputable developer that boasts of existing condominiums
- • Do a background check on your broker or sales agent
- • Deal with a verified sales agent/broker
- • Pick a location that will potentially become a business district
- • Ask about promos, discounts, rewards, and payment terms available
- • Verify the project with the Housing and Land Use Regulatory Board (HLURB)
Tips when Buying an RFO Property
- • Visit the condo or village of your choice and tour the building and amenities
- • Ask the residents about the pros and cons of living there
- • Check the condo policies
- • Choose a reputable developer
- • Deal with a verified sales agent/broker
- • Have your documents ready
- • Get pre-approved from a financing institution if you need a home loan
"Both options have their own risks, advantages, and disadvantages. Study the market, explore your options, and ask home owners about their own experiences to give you an idea of what you can expect."
So what's it gonna be for you? Would you like to take advantage of huge discounts and attractive promos that pre-selling offers or would you want to personally see and inspect the actual units and communities? The moment you've reached that decision between a pre-selling or RFO unit, I'm here to help you with your shopping!
