There are many options available for a home buyer today. He or she can choose a pre-selling or a ready-for-occupancy, depending on his or her wants and needs.

Check out the infographic below to know how a pre-selling property compares with an RFO, and know which one will fit you best.

Preselling vs RFO home

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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

Deciding which type of property to choose? Check out pre-selling and RFO units here.



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