What is the benefit of “buying” in this pre-construction phase? The answer is price and selection. Pre-construction prices are generally the lowest experienced throughout the entire project and typically lower than like kind resale preexisting properties. In addition, buyers have the best opportunity of property selection without initial risk of binding commitment.

Why to Developers sell pre-construction at lower prices rather than building first and selling for higher prices later?  Developers are typically required by their lender to have some percentage (25%-50%) of the project presold before they can get their construction loan approved.  In the meanwhile, developers usually give 3-5% rebates (in the format of closing cost contribution) to promote a quick presale to procure a construction lending with relative ease.

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