A real estate presale involves buying at a discount in exchange for the confidence of a finished product in the future. In recent years, it has become a popular way to invest/sell real estate. For the developer it has become a goal to achieve by selling everything before finishing and eliminating their risk, and for the client it has become a way of investing in advance betting on a semi-immediate capital gain.
As in everything, there are 2 positions, and although normally a pre-sale represents a win-win, there are certain risks and benefits that can help us make a decision to buy in pre-sale or wait.
Customers:
It represents an economic saving, but it implies waiting to receive your product and assuming a risk of time and quality by not having the physical space to review.
Benefit: Price – Availability – Capital Gain – Payment PlansRisks : Delivery delays – Poor Quality – Difference of sales material to reality.
Developer:
It implies receiving a lower value than the one that could be received in the future, but it limits uncertainty, saves on financial expenses, reduces marketing times and, in the case of condominium, gives certainty to the project.
Benefit : Financial Performance – Market Confidence – Reduces Risks
Risk: Changes in costs and not completing the budget – Pressure on delivery times – Leaving money of future value on the table.
My recommendation is the following. If your goal is to inhabit the place in the shortest possible time and time is an issue, look for something finished. Construction times are very difficult to calculate and rarely finish when promised.
If what you are looking for is the best deal, a presale is definitely for you.
Check the experience and reputation of the developer, the builder and the main providers.
Ask for a list of specifications that the finished product will include.
Consider if your life and needs will be the same in 1 or 2 years after the property is delivered to you.
Analyze how any scenario against you affects you, especially delivery times.
At vsconstructions we have to receive all kinds of clients. In the single-family residential world, a presale is also an opportunity to personalize certain details of your home. We have had clients who ask to adjust certain spaces or who choose a finish to their liking.
