From foreclosures to pre-selling. Know what you are getting into.

Foreclosed - Most properties in the Philippines  after being foreclosed by the bank are left to rott. Foreclosed properties are not sold the following day that it is foreclosed. The owners are asked to vacate it and given 1 year to pay for the balance. Sometimes, many property owners appeal to banks to pay for interest charges during the 1 year period so as not to put the property in the market. If the property requires maintenance, such as patch a leaking roof, repair a broken pipe or rewire faulty wiring both the bank and the property owner do not repair them – the owner would rather try to pay the interest if he could or leave it to rott to punish the bank – the bank on the other hand, would not repair or maintain a property that is not yet legally in their full possession which could take years to settle if the borrowers appeal to the courts. Some properties take too long to settle a foreclosure and by the time it falls on the hands of the bank, it is either in terrible shape or squatted upon by homeless people. Property owners, rarely surrender their hard earned properties in usable condition – some owners have even tried to set them on fire before giving them up as a sign of protest. Banks also try to re-sell these properties at prevailing market values regardless of its deteriorating conditions.  It may cost more to rehabilitate a foreclosed property than to buy a property being legitimately re-sold. Not all foreclosed properties are terrible though – there are diamonds in the rough. These foreclosed jewels could be challenging to find but very rewarding to buy. However, by the time you find one, other good deals may have passed you by.  

Re-sales – Properties being re-sold usually sell higher than foreclosed properties but are usually in better condition. In rare cases, some properties are being sold lower than foreclosed properties. It is also easier to spot them and viewing them does not necessarily force you into a hair raising experience to inspect a property filled by eerie cobwebs and stale air. Re-sales are usually maintained until the very day it is sold and some owners provide maintenance records of their properties. Many property owners try to fix major problems of their properties to attract more buyers in the hopes to sell them faster. By the time you come across one, most of the major problems may have been addressed and you are just left to do minor repairs. You may move into this property faster than a foreclosed asset.

Brand New – Brand new properties that are ready for occupancy provide the best value for the buyer. Fresh concrete, new wood, spotless kitchen, clean toilet, rust free water pipes, leak free roofs, perfectly aligned windows, updated electrical systems, prescribed and updated fire protection systems, updated architectural designs  and etc. Brand new properties have a longer economic life and although they cost more, they cost less to maintain in the long run. All you have to worry about for the next few years are the bank payments. Many brand new properties come with a 1 year warranty on the structure and equipment provided.  

Pre-selling – pre selling is the marketing trend of the future. This style of property selling is catching on many parts of the world and is less likely to disappear. It provides the most attractive payment terms and are usually sold at prices below properties that are ready for occupancy. Aside from buying at low prices and affordable terms, some builders allow buyers to put in their modification requests at additional costs. However, not all builders are reputable. Many builders have fantastic brochures that turn out different from the final product so caution should be exercised. Always deal with a licensed professional for your protection. Agents who sell properties in booths in malls are biased sellers who market properties of a certain builder and would always tell you what you want to hear.