Pre-selling

Pre-selling — buying a unit from plans, years before completion, typically 20–40% below intended RFO pricing with down payments stretched over construction (effectively free leverage while you wait). The economics depend entirely on a rising market: delivery delay, spec disappointment, and — in an oversupply — turnover-time resale competition against the developer’s own discounted stock. Level 3’s read: a leveraged appreciation bet wearing an affordability costume; in a flat market the launch buyer is the exit liquidity.

First used in: 3.5 · The condo trap and the five escapes