What is a presale

A presale is a common real estate term that refers to the sale of a property before it's completed. Buyers can purchase a property before construction begins or while it's in the early stages of development. This type of sale benefits both buyers and sellers in different ways, and it's also an excellent opportunity for real estate investors. Buyers can benefit from a presale as they have the opportunity to purchase a property at a lower price than it would be once it's completed. This is because developers often offer discounts to buyers who purchase early, so buyers can save money by securing their property before it's finished. Additionally, buyers can have some input into the design and layout of the property, which is not possible in a completed home. Sellers benefit by securing the sale of their property before it's completed. This gives them the financial certainty they need to complete the project to a high standard. It also allows them to gauge the level of interest in the project, so they can adjust their marketing strategy and pricing accordingly. Presales also offer an excellent opportunity for real estate investors. By purchasing a property before it's completed, they can benefit from the lower prices that developers offer to early buyers. This gives them a good return on investment, as the property's value will increase once it's completed. Additionally, investors can benefit from rental income from the property if they choose to rent it out. The length of time of a presale can vary depending on the size and complexity of the project. Some presales last for a few weeks, while others can last for several months or even years. During this time, buyers can secure their property by putting down a deposit, usually around 10% of the property's value. The deposit is held in trust until the property is completed, at which point the buyer can complete the purchase. It's important to note that presales can come with some risks. As the property is not completed when the sale takes place, there is always the possibility of delays or changes to the project. Buyers should ensure that they fully understand the terms and conditions of the sale before making a purchase, including any cancellation policies. In conclusion, a presale is a great opportunity for buyers, sellers and investors. Buyers can save money and have input into the design of the property, while sellers can secure the sale of their property before it's completed. Meanwhile, investors can benefit from lower prices and rental income. However, it's important to be aware of the risks involved in a presale and to ensure that you fully understand the terms and conditions of the sale.