One of the biggest decisions a real estate investor or homebuyer faces is choosing between a pre-selling property and a ready-for-occupancy (RFO) unit. While both offer great opportunities, they cater to different needs and strategies. Whether you’re buying your first home or planning to earn from rentals, it’s essential to understand how each option works—so you can invest wisely and with confidence.

What is a Pre-Selling Unit?
A pre-selling property is sold by the developer before it is completed—sometimes while it’s still in the planning or early construction phase.

Advantages of Pre-Selling Units:

• Lower Price: Typically 20–30% cheaper than RFO units in the same development.

• Flexible Payment Terms: Developers offer staggered monthly payments during construction.

• Higher Appreciation Potential: As the project nears completion, the value often increases.

• Better Unit Selection: Choose your preferred floor level, orientation, or unit type.

Disadvantages of Pre-Selling Units:

• Waiting Time: You’ll need to wait 2–4 years before moving in or earning from rentals.

• Developer Risk: Delays or changes in plans can occur. It's important to choose a reputable developer.

• Unseen Quality: You’re buying based on brochures and plans—there’s some risk in the finished outcome.

What is a Ready-for-Occupancy (RFO) Unit?
An RFO unit is fully completed and available for immediate move-in or leasing.

Advantages of RFO Units:

• Immediate Use or Income: You can live in it or rent it out right away.

• What You See is What You Get: You can inspect the actual unit before buying.

• No Waiting Period: Perfect for urgent needs or quick investment returns.

Disadvantages of RFO Units:

• Higher Price Tag: Expect to pay more than pre-selling options.

• Limited Payment Options: Often requires a larger upfront cost or down payment.

• Limited Unit Choices: You may have fewer options in terms of location, size, or view.

Final Takeaways or Discussion

So, which is better—pre-selling or RFO? The answer depends on your goals.

• Choose pre-selling if you want a long-term investment, are comfortable waiting, and prefer lower prices with flexible terms.

• Choose RFO if you need a home or rental property right away and want to see exactly what you’re buying.

Both options have their pros and cons, but with the right guidance, either can be a smart move.

At Villocino Realty, we offer both pre-selling and ready-for-occupancy properties across Davao and other key cities in Mindanao. We’ll help you weigh your options and find the best deal for your needs and budget.