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What Is A Preconstruction Sale?

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Pre-construction sales refer to real estate deals that are completed before the building project is completed. When a contract is closed before construction an investor may be able to benefit financially when the project appreciation increases in the near future.

Pre-construction sales give you the opportunity to join with other investors so that you can finance your real estate purchase. There are several advantages to pre-construction sales for both you and the developer. The first advantage to you when it comes to a preconstruction sale is that you won't have a mortgage payment while your property is under construction. This in itself will generate a profit for you. Developers will offer you many incentives when it comes to pre-construction sales because it is easier for them to sell you a future home at a lower cost than it is to attempt to sell you that property in the future at current real estate prices.

Pre-construction sales may also appreciate while the property is being built which means that a profit is being generated.  When you sign a preconstruction sale contract you are taking less out of your pocket since you won't have to use conventional financing methods to finance your real estate investment.

Pre-construction sales can be found all around the country. Some of the more prime target areas for pre-construction sales include Las Vegas, Tampa, Miami, Orlando, and Phoenix. If you are buying a preconstruction sale that you can either turn around and sell for a profit or rent out for revenue you will want to focus your real estate search on areas that are popular for retirement as well as for tourism.

Whether you are a beginner when it comes to the preconstruction sale, or already have some experience with this real estate concept, pre-construction sales, the buying and paying before construction is completed, is here to stay. Pre-construction sales can be a low risk method of buying property for your own use or as an investment for your future. You can use the equity in from your preconstruction sale to buy even more property through pre-construction sales.

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