Top Cebu Properties, The Advantages of Pre-selling

The Advantages of Pre-selling


       Today, more people are buying homes and offices straight from the floor plans and months, even years, before they are constructed. To many people, especially middle-income earners, this is the best opportunity towards finally owning a home because this plan gives them more time to organise themselves and seek funding via mortgages, loans, increased business or heightened savings. All that is needed to book a house off the plan is payment of the stipulated deposit, which often ranges between 10 % and 50 %.


       Another advantage of pre-buying, which is particularly attractive to speculators, is that prices of estate homes that are still on plan but are not yet under construction are a lot cheaper than when construction begins. Prices progressively escalate during construction such that, by the time a house is complete, its selling price could appreciate to more than 100 % from its original price.


       REAL ESTATE experts concur that the quest to invest in houses and offices has enabled those unable to buy property in cash embrace the plan. In essence, buyers review the architectural drawings and discuss the proposed development with either a developer or estate agent before a payment plan is rolled out.


       For the developers, pre-selling units allows them to accumulate funds in instalments, thus reducing their risk as they do not inject all their moneys into the housing or commercial projects. As a result, investors in the property market are raking in millions of shillings from pre-sales thanks to the ever-appreciating value of real estate.



Big discounts!!!

       Some developers allow structured payments during construction enabling prospective investors manage their cash flows more effectively.

Investors prefer buying property off-plan to maximise profits. Major benefits for potential purchasers is the capital growth that accumulates from the off-plan stage to physical completion of the property.


Capital growth

       Reserving a property at off plan stage entails having the architects floor and site plans, elevations and specifications before someone decides to buy. Off-plan buyers gain from their decision as there will be more demand once the property is completed.


       Most desired plots in a development are those that will benefit from greater gains in capital growth. Several off-plan investors also secure plots in areas that will maximise their rental return and minimise void periods.

Developers selling their properties off plan offer discounts on the price list to pre-sale buyers. However, not all property buyers are comfortable with the idea of investing on a house or office that they cannot see and physically inspect. In addition, buyers must be careful when dealing with developers as some have disappeared after receiving down payments.


Informal developers

       The rule of demand and supply applies in the property market in the wake of sensitisation on investment. There is a high demand for property and supply is inadequate. This has made the option for pre-sales more attractive due to the perceived appreciation of sale prices.


       Pre-sales give prospective investors the benefit of changing the design for an individual house while construction is ongoing. The advantages of pre-sales outweigh disadvantages because the developer cannot inflate the prices to benefit from increase of property value.


       The buyer signs a sale agreement with the developer that determines the sale price before the property exchanges hands. Buyers must make sure they are dealing with formal developers because our registered members adhere to a code of conduct.


       Mortgage companies extend loan facilities to help clients purchase homes after confirming that the contracts are valid. Clients have to settle 20 per cent of the sale price before they step in.


       Our condition is mainly that the buyer shows that he/she can pay 30 % of the purchase price before we pay the balance.



       Pre-sale is a concept where the developer finalizes the design and documentation before he constructs a show house/Unit model. A show house is a sample of a house or office that is shown in the plan of the developer to attract prospective investors.


       Prospective homeowners choose their preferred units and commit after payment of the agreed down payment.