Many subdivision developers and their sales agents in Bacolod City have been enticing the public, especially the would-be buyers, to buy their lot or house and lot packages in the subdivisions that they are constructing, at a “pre-selling” price.
This practice is not limited to Bacolod City, Negros Occidental, since real estate developers in other cities and provinces in the Philippines are doing the same.
Their promotion pitch and come-ons are like this: The price is cheaper because it is still pre-development price, or pre-selling stage, and that once the project is completed, prices will go up by 50% or even up to 100% of the current price. After all, they will assure you, the project will be completed in a few months or in a year or two, so why not take advantage of the rare opportunity now?
So, what would you do? Take advantage of the promo and buy a cheaper but a non-existent house or undeveloped and untitled lot at a pre-development price to save a lot?
Many buyers and investors are misled into buying a lot, or house and lot package, at projects at pre-development stages because of the attractive offers of the developers and their sales agents.
However, there are many buyers who regretted their decision, while others have still have unresolved problems to this day, with their hard earned money gone with the wind.
The truth is, buying a house and lot package or just a lot, during the project’s pre-development or pre-selling stage is risky. Some of the documented risks are as follows:
1.. Fake or unlicensed real estate broker and sales agents.
2. Fly-by-night developers.
3. Unlicensed developers who had no permits and licenses for the project.
4. The project violated the ordinances of the local government units, so business permit was not issued, making the sale questionable.
5. The ownership of the property is questionable, as it is being claimed by contending parties, or there is still unresolved issues in court on partition.
6. The mother title or the individual titles were mortgaged in the bank.
7. The development of the subdivision or the project has been delayed because of the financial problems of the developer, which has resulted to its non-completion.
8. The materials used in building the house is sub-standard and not according to specifications.
9. The bank foreclosed the property because the developer could not pay.
10.The project was not be finished and was abandoned by the developer.
So, next time when the developer or his/her sales agents gives you an attractive proposal to buy their house, lot or a house and lot package, at a pre-selling price, think again. Don’t be misled. Scrutinize the track record of the developer. Now you know better.
*source of image: cebucity.olx.com.ph