Ready-for-Occupancy (RFO) or Pre-Selling: Which One to Buy?

Last Updated on October 13, 2022 by Lamudi

Ready-for-occupancy or RFO and Pre-selling are some of the terms you encounter when buying a real estate property. RFO homes refer to properties you can move in immediately once the purchase is finalized. On the other hand, pre-selling properties are homes that real estate developers sell to buyers as early as a real estate project’s planning or construction phase.

Knowing the difference between RFO and pre-selling properties is not enough for you to arrive at an informed decision when it comes to buying a property that suits your needs, preferences, and budget. This article will teach you the specifics of RFO and pre-selling properties.

RFO Properties: Pros and Cons

A ready-for-occupancy property for sale is not for everyone. To find out if your situation should purchase an RFO unit, here are the pros and cons:


Move-in Ready

One of the great advantages of an RFO property for sale is that it is already ready for you to live in it immediately. No need to wait months or years before you can move in. For your convenience, developers sell fully-furnished RFO properties, ideal for first-time homeowners, as they will relieve the burden of buying home furniture pieces and accessories and hiring interior designers. 

You Can See and Touch What You’re Paying For

When you invest in a ready-for-occupancy property, you can already be sure about its quality to see if it is worth your hard-earned money. When you can already see and touch your future home, it is easier to imagine how your life would be in it with your family, including the property’s neighborhood. Since you can already see the property you will buy in its actuality, you can get a true sense of its size and if the amenities offered are as good as advertised.

Rent-to-Own is a Possible Payment Option

There are numerous ways you can finance your chosen RFO property. One of the best options you can take advantage of is renting to own. Under this scheme, you can use your monthly rent to purchase your chosen property after several years. This is beneficial if you do not want to shell out a huge amount of money as a down payment in one go. If after a few months or years of living in that RFO property you conclude that it does not meet your needs, you can move onto another property that best fits you. Remember that you cannot get the rent payments you already paid for. 


You Need to Act Fast

RFO properties sell like hotcakes–they are often nearly sold out because some of the properties were already sold during the pre-selling phase. In some instances, the RFO units for sale are forfeited units that the original buyer, later on, gave up. Since there’s a limited number of RFO slots in a project, expect that the best locations are often bought already or are hard to come by as still available.  

Your Savings Need to be Ready

Other developers require shorter payment terms when selling RFO properties. Often, total cash payments are preferred by developers. In some cases, though, developers allow staggered payments, usually on short terms. If you do not have enough budget to purchase a home, buying an RFO unit may be challenging since you have less time to save up. 

It Has Already Appreciated in Value

When it comes to real estate, the best time to buy is yesterday. This is because real estate prices are always going up. Once a property is already built, its market value also increases, which means you may need to pay more compared to a pre-selling property.

Now that you know the pros and cons, here are RFO properties you can consider investing in:

RFO Condo Properties for Retirement

Spend your golden years at the best RFO condo properties for retirement around the country. These provide you with a lifestyle of privilege through top-notch amenities and strategic locations.

RFO House and Lots for OFW Retirees

Our modern-day heroes deserve nothing but the best place to return to after retirement. With these RFO house and lots for OFW retirees, you can have a property waiting for you by the time you retire and return to the Philippines.

RFO Beach Houses in Iloilo

Iloilo is one of the best cities to consider retiring in a sit boasts plenty of natural wonders and a booming economy. Find a forever home close to the sea with RFO beach houses in Iloilo that you can also utilize as a rental property.

Pre-Selling Properties: Pros and Cons

Are you interested in investing in a pre-selling property? Here are the pros and cons of buying one:


Flexible Payment Terms

Often developers reduce the actual price of the property by 30 to 50 percent for pre-selling properties. To encourage more buyers to invest in a real estate property, they may offer discounts or 0% down payments. Some even waive the reservation fee when the buyer signs the contract and pay in-house. 

There are also numerous payment options you can choose from when you consider buying a pre-selling property for sale. You can even score huge discounts if you have enough savings to pay for the down payment or the total contract price. You can also break your expenses down for years since it will take a while before the property is turned over to you.    

Customizable Options

You have plenty of options when you buy a property in its pre-selling state. You can also customize the layout and other features of your chosen home based on your preferences and needs so long as it is allowed by the developer. When you are involved in the construction process, you can check the progress of your property and ask for any adjustments in advance if needed. 

Quick ROI upon Turnover

By the time your property is turned over to you, its value may be double or even triple the price you originally paid for. If you do not want to live in it, you can resell it at a higher price or lease it to interested renters to earn profit.


Unexpected Finished Product

There are instances when developers may be unable to live up to their promises. During the construction process, the size of the home can change, even the floor plan and features, without the buyer’s knowledge. Ultimately, you may pay for a property different from what was promised to you or fall short of your expectations. One way to prevent this con is by getting a property from developers with a trusted track record of excellence. 

Delays in Completion

In addition to unexpected outcomes, pre-selling properties may be delayed in completion due to different circumstances, including unforeseen pandemics. That being said, a buyer cannot say when they will be able to get the keys to the property they are paying for and live on it. 

For more real estate tips and advice, check out our previous journals here. 


Please enter your comment!
Please enter your name here

Pros and Cons of Prefabricated Houses in the Philippines

Prefab home builders promote their homes as being quicker, more environmentally friendly, and less expensive than conventional residences. As the name suggests, the house's...
Driveway Maintenance Tips

Driveway Maintenance Tips