
Preselling vs RFO house and lot in Philippines: Compare costs, benefits & risks. 2025 guide
“Investing in real estate is like investing in yourself - it appreciates over time and pays dividends in happiness. Attract abundance by surrounding yourself with spaces that inspire. Your dream home is the ultimate Law of Attraction vision board!” - Nicoll Alomar
When it comes to buying a house and lot in the Philippines, two primary options dominate the market: Preselling and Ready for Occupancy (RFO) properties. Both have their unique advantages and disadvantages, and understanding these can help you make an informed decision based on your needs, budget, and timeline.

Preselling vs. Ready for Occupancy (RFO) House and Lot: A Comprehensive Comparison
Preselling Properties
Preselling properties are those that are still under construction or in the planning phase. Buyers purchase these units before they are completed, often at a lower price compared to RFO properties.
Pros
Lower Price: Preselling properties are typically priced lower than RFO units, making them more affordable for first-time buyers or those on a budget.
Flexible Payment Terms: Developers often offer attractive payment schemes, such as low down payments and extended payment periods, making it easier to manage finances.
Appreciation Potential: Since you’re buying early, the property’s value is likely to appreciate by the time it’s completed, giving you a good return on investment.
Customization Options: Some developers allow buyers to choose finishes, layouts, or upgrades during the construction phase.
Cons
For OFWs, many Philippine banks offer special housing loan programs. Local professionals can explore various mortgage options from banks and Pag-IBIG Fund. Compare interest rates and terms to find the best fit for your financial situation.
Construction Delays:
One of the biggest risks with preselling properties is the possibility of delays in construction, which can push back your move-in date.
Uncertainty: Since the property is not yet built, there’s a level of uncertainty about the final product, including quality and design.
Longer Wait Time: You’ll need to wait months or even years before you can move in, which may not be ideal for those who need immediate housing.
Ready for Occupancy (RFO) Properties
RFO properties are fully completed and ready for immediate move-in. These are ideal for buyers who need a home right away.
Pros
Higher Price: RFO properties are generally more expensive than preselling units, as the value has already appreciated.
Limited Customization: Since the property is already built, there’s little to no room for customization or upgrades.
Less Flexible Payment Terms: Developers may not offer as many flexible payment options for RFO properties, requiring larger down payments or shorter payment periods.
Useful Tips for Making a Decision
Assess Your Timeline: If you need a home immediately, RFO is the better choice. If you’re willing to wait and want to save money, preselling might be the way to go.
Check the Developer’s Reputation: Whether you’re buying preselling or RFO, always research the developer’s track record. Look for reviews, completed projects, and their history of delivering on time.Cons
Inspect the Property:
For RFO properties, always visit the site to inspect the unit. For preselling, visit the model unit and ask for detailed plans and specifications.
Consider Your Budget:
If you’re on a tight budget, preselling properties offer more affordable options with flexible payment terms. However, if you have the funds and want to avoid risks, RFO might be worth the investment.
Think Long-Term:
Consider your long-term goals. If you’re looking for an investment, preselling properties may offer higher appreciation potential. If you’re buying for personal use, RFO provides immediate satisfaction.
Conclusion
Both preselling and RFO properties have their own set of advantages and disadvantages. Your decision should ultimately depend on your financial situation, timeline, and personal preferences. By carefully weighing the pros and cons and following the tips above, you can make a well-informed decision that aligns with your goals.
Ready to take the next step ? Whether you’re leaning towards preselling or RFO, make sure to consult with a trusted real estate professional to guide you through the process. Happy house hunting! 🏡✨
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