Sellers of pre-construction properties have two main options: assignment sale or resale. Each method has its own process and considerations. Understanding the differences can help sellers choose the right approach based on their situation.
What is an Assignment Sale?
An assignment sale is when the original buyer of a pre-construction property transfers their purchase contract to a new buyer before taking possession. The new buyer assumes the agreement and will close directly with the builder.
Considerations for Sellers in an Assignment Sale
✔ Avoids Taking Possession – Since the property is not yet completed, the seller does not take ownership.
✔ Builder Policies Apply – Builders often have specific rules about assignment sales, including approval requirements and potential fees.
✔ Marketing Restrictions – Some builders do not allow assignments to be listed on MLS, limiting exposure.
✔ Limited Buyer Pool – Not all buyers are familiar with assignment sales, which can affect demand.
What is a Resale?
A resale occurs when a completed and registered property is listed on the open market and sold to a new buyer.
Considerations for Sellers in a Resale
✔ Full Ownership Required – The seller must take possession and complete the closing before listing the property.
✔ Wider Market Reach – Resale properties can be marketed publicly, including on MLS.
✔ Standard Selling Process – Buyers can use mortgage financing, making the process more familiar to traditional homebuyers.
✔ Carrying Costs Apply – Until the property is sold, the seller is responsible for any applicable costs such as maintenance fees and taxes.
Which Option is Better for Sellers?
Assignment Sale May Be Suitable If: The seller does not want to take possession and the builder allows assignments.
Resale May Be Suitable If: The seller prefers a wider audience and standard marketing channels.
Final Thoughts
Both assignment sales and resales have their own processes and considerations. Sellers should review their agreement and consult a professional to determine the best option based on their needs.
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