Definitions and Abbreviations in Real Estate Industry
What is RFO?
Ready For Occupancy, which means the property is ready for the buyer to transfer and the buyer can use the property. This is most of the time given to the home owner together with the key of the property. glenn delve
What is RTO?
Rent To Own, which means a property can be paid monthly until such time the renter pay off the property price in a given period of time. This is most of the time associated with financing from either Pag-Ibig House Loan, Bank Home Loan, In House Financing and Realty Firms Support Loans
Sample Situation: If a buyer is interested of getting a Single Attached property but doesn’t have the funds or cash to buy out the entire property, the buyer can borrow money from either Pag-Ibig, Bank or In House to pay for the property then the buyer pays the lender the borrowed amount plus interest in a monthly basis in a span of time which works just like renting.
What is HULRB?
The Housing and Land Use Regulatory Board (*HLURB) is a National Government Agency tasked as the planning, regulatory and quasi-judicial body for land use development, real estate and housing regulation. These roles are done via a triad of strategies namely, policy development, planning and regulation. This agency also provides and grants a broker and developer the license to sell and develop properties.
What is a Realtor, Broker or Agent?
Is a person who acts as an agent for the sale and purchase of buildings and land; a real estate agent.
A real estate broker or Real estate Agent is a person who acts as an intermediary between sellers and buyers of real estate/real property and attempts to find sellers who wish to sell their properties, buyers who wish to buy properties and renters who wish to rent commercial space or residential properties.
What is Pre Selling?
To sell (a house, for example) in advance of construction. To promote (a product not yet on the market) by means of advertising or marketing. To condition (a potential customer) in advance for later purchase of a product. This a selling stage where in the property is still on a planning stage, under completion and in the middle of construction
Sample Situation: Real Estate Brokers and Agents are selling the property without the property itself or the property has not been built or erected yet. You will know if the property is on pre selling aside from asking it from a Broker or an Agent is when the images of the property on the flyers and websites are results of a drawing software or planning software. This is where you need to make sure that you are dealing with Licensed Real Estate Brokers or Agents.
What is the Advantage/Disadvantage of buying Pre Sold properties?
You should know by now the meaning of pre selling or pre sold properties (read above). Let us start with the advantages part. There are a number of advantage points when buying pre sold properties. First, affordability, which means making the can afford scope bigger since properties on pre selling are lower than up to 35% of the RTO properties plus, most of the developers offer up to 12% discount for cash and 10% discount for early birds buyer under financing with 10-20% down payment. Second, you have more choices to choose from and you can also make minor changes of the property like sizes, floor plan, finishing and some features. Lastly, this is a point where you maximize your time on investment while you attend to some other important things, a rental investment for those who are not currently renting.
Now let us go to the not so good points or disadvantages of a pre sold property. First, anything that you can think of opposite to the advantages stated above. Second, this is where a lot of currently renting buyers missed, pre sold properties are NOT good for renters, it doubles their rental allotment instead of saving as what they thought they were having. Lastly, the risks of dealing with Real Estate people, completion of the property, approval of license to sell of the developer, not getting what has been planned, images are better than the actual property designs and what not. To help with your decision, talk to a licensed Realtor, make due diligence of the developer and get some tips from friends and relatives.