For buyer, preconstruction process provides an opportunity to seal a property deal with little margin money and achieve sizable discounts over tentative price of finished condos. For developer it is an opportunity to presale entire property even without laying a single brick and to procure a construction lending with relative ease.

In the preconstruction process, property developers place building plans of a proposed real estate venture for pre-selling. Only thing made available to buyer are architectural rendering and floor plans of condominium, town house, or single family residence. The good news is that preconstruction prices are normally at an attractive discount of proposed sale price of complete units.

In theory, buyer gets discount because they displays grit and tenacity to invest on mere paper and "air". However, in reality, they are getting discounts because are a crucial piece of puzzle for developer because pre-selling of a particular percentage of total units is a need for getting a prospective lender to fund construction process.

If you are interested in investing in preconstruction property, you can check out list of preconstruction offers available in your locality in newspapers, on Internet or with your real estate consultant; that is if you have those types of projects in your locale. When you have list, you can shortlist offers that are suitable according to your budget and needs. After that you must run a thorough check on property and developer on many issues. Certain key reasons are, going and expected cost of similar units in that locality; demand supply factors; whether units are assignable and uniqueness of property. You must also check for future or proposed development plans in vicinity to protect your view. This aspect is important because you might choose to buy an apartment in a preconstruction process at a premium due to prefect view of lake or waterfront. However, after some time you may find out that another developer is building a project, which may blind your view.

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