Written by Tahananmo Editorial Team
CONTENTS
Pre-selling properties are the most heavily marketed product to OFW communities abroad. Developer sales teams travel to OFW-dense cities in the Middle East, Hong Kong, Singapore, and Europe.
The pitch is actually compelling: buy now at below-market prices, flexible payment terms during construction, and significant appreciation by the time the unit is turned over.
For some OFWs, pre-selling has delivered exactly that. For others, it has delivered years of payments into a project that was never completed, or a unit that was significantly below the quality shown in sales presentations.
This guide helps you tell the difference between a sound pre-selling investment and a financial trap. This post is part of the The Complete OFW Property Buyer Guide.
Developer marketing teams target OFW communities because: OFWs have demonstrated saving discipline (they are already sending money home regularly), the OFW payment pattern (regular monthly remittances) matches pre-selling payment schedules perfectly, and OFWs’ physical distance makes comparison shopping and due diligence harder, which benefits aggressive sales tactics.
Understanding why you are being marketed to does not mean the product is wrong for you. It means you should apply careful evaluation before buying.
Verify the License to Sell: A License to Sell is issued per project. Verify it at dhsud.gov.ph before any payment. A developer presenting without a License to Sell is operating illegally.
Research the developer’s completion track record: How many of their previous projects were completed on time and at the promised specification? Ask specifically about their track record, not just their history. Contact buyers of their previous projects through online forums and community groups.
Read the forfeiture clause: What happens to your payments if you miss installments or cannot complete the purchase? Some pre-selling contracts have harsh forfeiture terms that are easy to miss in a fast-paced sales presentation.
Have a Philippine real estate lawyer review the contract: A PHP 10,000 to PHP 20,000 lawyer’s review fee is exceptional value protection for a transaction that may total PHP 3 million to PHP 8 million over its lifetime.
Keep a 3 to 6 month payment buffer: Maintain savings equivalent to 3 to 6 months of your pre-selling monthly payment as a buffer against income disruption. If you lose your job abroad, this buffer prevents immediate payment default while you find new employment.
1. What is the developer’s License to Sell number for this specific project, and can I verify it at DHSUD?
2. What projects has this developer completed in the last 5 years, and were they delivered on time?
3. What are the forfeiture terms if I miss payments?
4. Is the purchase price fixed from today, or can it change before turnover?
5. What is the estimated turnover date, and what is the penalty for delays beyond that date?
6. What specifically is included in the contract specifications, and how do I confirm the actual unit will match?
Ayala Land, SM Prime, DMCI, Robinsons Land, and other established Philippine developers with decades of project completion history present materially lower pre-selling risk than unknown or recently launched developers. The discount for buying pre-selling from a developer with a strong completion track record in a well-chosen location is a genuine investment opportunity.
Find the right property professionals to guide your pre-selling evaluation at Tahananmo.
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