If you’re a new real estate agent in the Philippines, one of the first questions you’ll face is this:

"Should I focus on preselling units or RFO (Ready for Occupancy) properties?"

Both can be profitable. Both can build your career. But they fit different types of agents—and knowing which path to start with can save you months of frustration and lost income.

Here’s a simple, clear breakdown to help you choose.

Preselling: The Best Starting Point for Most New Agents

Preselling is often the easiest entry point for beginners, and here’s why:

1. Easier to Sell Because It’s More Affordable

Preselling offers:

• Lower down payments
• Stretched terms
• Early-buyer discounts
• Flexible promos

Most Filipino buyers—especially young families and OFWs—are budget-conscious. Preselling fits their financial capability, making it easier to convince them to reserve a unit.

Buyers only need to pay a reservation fee, which is manageable for most people, and the down payment (10–20%) is payable in monthly installments. Because preselling carries minimal financial exposure, buyers can make decisions faster.

2. Developers Provide Strong Marketing Support

One of the biggest advantages of selling preselling units is the massive marketing support that developers provide. This is a huge benefit for new agents who may not yet have the skills, resources, or budget to create high-quality marketing materials on their own.

When you work with reputable developers, you instantly gain access to:

·       Professionally designed brochures and flyers

·       High-quality videos and virtual tours

·       Fully furnished and "Instagrammable" model units

·       Regular webinars and Zoom presentations for client pitching

·       Ready-to-use digital ads, social graphics, and content kits

These tools make it so much easier to present the project to your clients—even if you’re new and still building confidence. Instead of starting from zero, you can leverage the branding, reputation, and polished materials that developers have already created.

Model units are one of the strongest selling tools in preselling. Developers invest millions in furnishing and designing these units to show buyers what their future home can look like.

For new agents, this is a huge advantage:

·       You don’t need to stage or prepare anything

·       Buyers can visualize the space immediately

·       It helps clients overcome hesitations about buying a unit that isn’t built yet

Model units turn imagination into reality—which dramatically increases your chances of closing the sale.

Promos are a game-changer in preselling. Developers frequently launch various promos such as:

·       Spot cash discounts

·       Low reservation fees

·       Extended DP terms

·       Waived move-in fees

·       Lower monthly amortizations

·       Appliances or furnishings as freebies

As an agent, you can use these promos to encourage hesitant buyers to move forward. Instead of convincing the client purely with words, you can show them real, tangible benefits that make the decision easier.

These incentives help build urgency, which is especially useful for new agents who are still learning how to handle objections and close deals.

3. You Build Your Pipeline for Future Income

One of the biggest long-term advantages of selling preselling units is the ability to build a pipeline—a steady flow of commissions that you’ll receive months or years from now.

Unlike RFO transactions, where commissions come quickly but inconsistently, preselling commissions are released once the project reaches certain milestones. Because developers typically turn over units within 2 to 5 years, the income doesn’t arrive immediately—but it does arrive. The pre-selling deals I’ve closed in 3-5 years ago, I’m now getting the commission for in tranches. So funds now keep coming in on a regularly basis.

Think of preselling as planting seeds.

Every time you close a sale today, you’re planting a seed that will grow into a future payout. If you close consistently—say, a few sales every month—then over time, those "future commissions" begin to overlap.

After a year or two, this overlapping effect turns into:

·       Steady monthly commission releases

·       Predictable cash flow

·       Long-term income stability

·       A stronger financial foundation for your real estate career

This is why many top brokers still continue selling preselling units even after they’ve become successful. They understand that pipeline income is the backbone of a sustainable real estate business.

This is how many top performers build their careers. Most of the industry’s top-producing agents didn’t become successful because of one big sale—they became successful because they consistently closed preselling projects that eventually created a continuous stream of income. Like most things in life, consistency is the key to long term success.

But Keep in Mind: It Takes Patience and Commitment.

Preselling also comes with its realities:

· Commissions are deferred. You might wait 2 to 5 years before receiving full payouts.

· Follow-up is essential. You must stay connected with clients throughout the entire construction period—especially during financing and turnover. This is where Nurture Your Leads (nurtureyourleads.com) come in. This is an online sales assistance to help you follow up, nurture and close deals.

· Buyers need nurturing. Long DP schedules mean clients may have concerns, questions, or financial issues along the way.

Pre-selling is Best for: ✔ Agents who can wait for commissions ✔ Beginners building skills ✔ Part-timers or full-timers who can handle long-term nurturing

RFO: The Fastest Way to Earn, But Harder for Beginners

RFO (Ready for Occupancy) units are properties that are fully constructed, inspected, and ready to be moved into. They attract a very specific type of buyer—families who need a home immediately, OFWs returning to the country, and investors looking for units they can rent out right away.

Because the need is urgent, the opportunity is huge. But the challenge is equally big, especially for new agents.

1.    Faster Commission Payouts

One of the biggest advantages of selling RFO units is the speed of commission release. Unlike preselling, where commissions are given slowly over the course of the buyer’s down payment period—sometimes taking 2 to 5 years—RFO commissions are tied directly to full payment. Once the property is fully paid and ownership is ready to be transferred, the broker’s fee can be released.

For cash buyers, commission is released within right after closing since the buyer has already fully paid the seller.

For bank-financed RFO, the commission is released in tranches. The first release is upon down payment of the buyer and the second tranch is upon release of loan proceeds to the seller. So there is a bit of a waiting time to get the full commission, depending on how long it takes to transfer the title. Since the bank will release the loan, once transferred title is submitted to the bank.

This makes RFO highly attractive for agents who need faster cash flow, especially those relying solely on real estate as their income source since you don’t have to wait for years to get your full commission.

In short: Preselling = slow but stable RFO = fast but harder to close

2.    More technical and harder to close compared to Pre-selling

While RFO offers the advantage of quicker commission releases, it also demands more skill, deeper knowledge, and stronger confidence from an agent. Compared to preselling—where the developer handles almost everything—RFO requires the agent to take on a more hands-on, technical role.

a. You Handle the Full Due Diligence Process

In RFO transactions, the agent cannot rely on the developer’s sales admin team to process documents. Instead, you need to personally ensure that everything is in order before the sale moves forward. This includes:

·       Inspecting the condition of the property

·       Checking for repairs, issues, or discrepancies

·       Verifying ownership documents (Title, Tax Dec, Tax Clearance, IDs)

·       Ensuring that the seller is the true, legal owner

·       Confirming the unit is free from liens, encumbrances, unpaid dues, or arrears

·       Coordinating with homeowners associations or the property admin

·       Making sure all signatures, documents, and IDs are complete and valid

This level of responsibility can be overwhelming for new agents who are still unfamiliar with the technical side of real estate transactions.

b. You Must Coordinate Between Buyer and Seller

Unlike preselling—where you mainly deal with the developer—RFO requires you to serve as the bridge between two parties:

·       The buyer, with their expectations, timelines, and budget

·       The seller, with their demands, limitations, and desired selling price

This means the agent must have:

·       Strong interpersonal skills

·       Clear communication

·       Firm but respectful negotiation ability

·       Patience and problem-solving skills

Agents often need to mediate when disagreements arise over pricing, repairs, inclusions, turnover timelines, and document completeness.

c. Negotiation Is More Complex

In preselling, the price is fixed. In RFO, everything is negotiable—price, terms, repairs, inclusions, move-in dates.

This puts pressure on the agent to:

·       Justify the value of the property

·       Manage both parties’ expectations

·       Find a win–win agreement

·       Ensure neither side feels shortchanged

·       Keep the deal alive even when compromises are needed

New agents often struggle here because they don’t yet have the experience or confidence to handle tough negotiations.

d. Closing an RFO Deal Still Takes Time

Many think RFO is "fast" just because the unit is ready. In reality, RFO deals can still take months before closing—especially when:

·       The buyer has a very specific requirement

·       The seller is unavailable or abroad

·       Documents are incomplete

·       Repairs need to be completed before turnover

·       Bank financing is involved

·       Appraisal issues arise

·       Both parties negotiate multiple times

For example, one of my recent RFO transactions took 7 months to close. I had to search for the right property, negotiate the price and terms, help the buyer process the bank loan, assist with due diligence and coordinate turnover

Even though the unit was ready, the entire process still required time, patience, and expertise.

RFO is fast—but only if the agent has the technical knowledge and hands-on skills to execute the transaction smoothly. It requires more responsibility, more communication, and more problem-solving compared to preselling.

This is why RFO is often better suited for more experienced agents, or for beginners who have strong mentors to guide them.

So, Which Should You Focus On?

If you’re brand new:

Start with PRESSELLING.

It’s easier, more forgiving, and builds your pipeline—your long-term income engine.

Once you gain confidence:

Add RFO to your portfolio.

That’s how you stabilize your career: Pipeline income (Preselling) + Fast income (RFO).

This combination is what ultimately leads to consistent closings, higher earnings, and a sustainable real estate career.

New agents don’t win by being the most experienced. They win by being the most consistent.

Ready to Build a Successful Real Estate Career? Join Truly Wealthy Realty.

Whether you want to master preselling, learn RFO transactions, or build a long-term career with stable income, you don’t have to do it alone.

At Truly Wealthy Realty, we guide new agents step-by-step through the entire real estate process—with real mentorship, real training, and real results.

When you join Truly Wealthy Realty, you get:

✔ Hands-on coaching from experienced brokers

✔ Regular trainings designed for to create Elite Agents

✔ Marketing support—content kits, presentations, and templates

✔Tools like Nutureyourleads.com to help you track your leads and deals

✔ Developer accreditation with top projects nationwide

✔ A supportive culture focused on growth and excellence

✔ One-on-one guidance for your first few closings

✔ A community that genuinely wants you to succeed

Whether you’re just starting or looking to level up, Truly Wealthy Realty gives you the tools, training, and environment to thrive.

If you’re ready to grow, earn, and build a long-term career in real estate, send us a message and apply to become a Truly Wealthy Realty agent today.

Contact me: 📲WhatsApp +63 917 851 2752 or 📩 Email [email protected]