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Business Definition for: presale
Dictionary of Business Terms
presale

sale of proposed properties, such as condominiums, before construction begins. For example, a developer may presell condominium units at a discount before construction begins. Based on the presales, a developer is able to get a favorable

See also construction loan
Dictionary of Real Estate Terms
presale

sale of proposed properties, such as condominiums , before construction begins.

Example: The developer presold 40% of the condominium units at a $5,000 discount for each unit before construction began. Based on the presales, the developer was able to get a favorable construction loan .

Related Terms:
construction loan

short-term real estate loan to finance building costs. The funds are disbursed as needed or in accordance with a prearranged plan, and the money is repaid on completion of the project, usually from the proceeds of a mortgage loan. The rate is normally higher than prime, and there is usually an origination fee. The effective yield on these loans tends to be high, and the lender has a security interest in the real property.

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