When we discuss a home that has already been built, is move-in ready, but wasn’t lived-in before, those are “new constructions”. These homes have not been lived-in yet, but they can be bought before they are built or during their construction. The definition of presale describes a home that can be purchased before it is ready to be occupied. However, presale homes aren’t risk-free as the market can change at any time, which may lead to a loss of profit when home prices depreciate.

For investors, if the market is “hot”, the potential of profit is the best incentive, so purchasing presale homes is an attractive opportunity for them. Many investors or first-time home buyers see presale homes as a great way to enter a market. This enables a developer to obtain a construction loan to complete additional units. For example, a residential home developer discounts the price of a home by $10,000 if prospective buyers will agree to purchase prior to its completion.

Susan Kumpula & Edward Heitchue, Real Estate Agent Remerica United RealtyĪ presale refers to selling a commercial or residential unit prior to its completion.

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