What is a “Pre Construction” sale?


Selling “Pre Construction” is an innovative development solution by Lowe Design & Build. This model has achieved successful outcomes for over 100 Bayside owners.  

It provides landowners access to the funds necessary to build, without taking on the large financial investment associated with property development.

By selling one townhouse Pre Construction, the landowner receives proceeds from the sale, before they build. A purchaser, sourced by Lowe Design & Build invests their capital prior to construction which makes the whole development possible.

It allows landowners to maintain control throughout the process, and unlike a Joint Venture, retain all development profits.

Why landowners love this model.

Selling Pre Construction offers the opportunity to unlock the value in their current property, remain in the location they love and build themselves a new home without needing to source their own funding.

This is safer approach as they continue living in their property, just as they are, until the sale townhouse is successfully sold.

Why purchasers love purchasing Pre Construction.

This model allows purchasers to access land in tightly held locations where they would never have imagined having the opportunity to build their dream home.

The timeline often works well for them too, as it provides the time required to sell their current home, reducing the pressure to sell.

Above all, they love the opportunity and the freedom to customise; customising their future home to their individual needs and desires.

Our buyers have often admired Lowe Design & Build’s work for an extensive period time and appreciate the long term benefits of owning one of our homes. They recognise the value they hold.

How selling Pre Construction works.

Once plans and permits are approved, the sale townhouse is presented to the market at a price that includes the land and the build, as specified.

When sold, the sale amount is broken into two components – one portion is allocated to the land and is paid directly to the landowner prior to construction. The remaining funds contribute to a reduction of the overall construction costs.

This is achieved by subdividing the land prior to construction.

There are three main stages in your project timeline:

Design –

In collaboration with the design and sales teams at Lowe Design & Build, the landowner will design two townhouses for their property. One townhouse is tailored to their preferences, while the other is designed to meet the needs of potential buyers in the market.

Sell –

Once the necessary permits are obtained, marketing preparation can begin along with the search for a buyer.

During this phase, the landowner remains living in their current property.

Like a normal Real Estate sale, once a buyer is secured, contracts are signed and both parties work toward the eventual settlement of the newly subdivided land.

Build –

All parties still have the opportunity to further customise their townhouse prior to construction commencing.

After settlement of the newly subdivided land, construction begins, and both the landowner and the buyer make progress payments throughout the construction of their respective townhouse.

Sold / Pre Construction

What is the preliminary investment?

Prior to a buyer being sourced, the landowner is responsible for the design, permitting and documentation costs.

There are also marketing costs associated with the sale, and of course, a sales commission.

Does selling Pre Construction deliver the best sales results?

This segment of the buyer pool is not a ‘price only’ focused market. They have typically followed Lowe Design & Build for a long period and are familiar with the quality of the homes. Therefore, they already have confidence in the product itself, so it’s more about finding a home that will suit all their needs.

Our townhouses perform very strongly in any market, when compared to other comparable properties. The buyers are more than prepared to pay fair market value, to get exactly what they want.

Who sets the sale price?

The purchase price for the sale townhouse is based on recent comparable sales in the area and set by the landowner.

As a Licenced Real Estate Agency, Lowe Design & Build will support and guide you through this and every other step of the process.

How do we find our buyers?

We have an extensive and ever growing database of discerning prospective buyers. Many have been following Lowe Design & Build projects over a long period and attended numerous viewings of completed homes. Our name is well known and trusted in the Bayside area. Our current listings can be found on our website and other Real Estate platforms.

What if I have an existing mortgage?

For landowners with an existing mortgage, proceeds from the land settlement will typically be used to discharge or substantially reduce the mortgage. For those that need extra funding to complete their build, most will use a construction loan. Your accountant, mortgage broker or financial advisor can provide advice on what option will work best for you.


When selling or purchasing Pre Construction, there is the potential for both parties to reduce property and purchase taxes. It is recommended to seek advice from your accountant or financial advisor to better understand what your tax implications may be.

To sum up…

This model is a unique development solution facilitated by Lowe Design & Build, whereby you can stay in the location you love and develop your land without having to source your own funding for the build.

The team at Lowe Design & Build have assisted over 100 satisfied landowners using this exact model.

To see a short list of projects whereby the landowner developed their land without funding the build, click here.

Will you be the next to join them?

Book a complimentary and obligation-free site assessment, and let’s start looking at the possibilities together! Click Here to request a meeting

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Please Note | The information provided is general in nature and your personal financial situation is unique. Any information and advice obtained through this article may not be appropriate for your situation. We would recommend seeking financial advice before proceeding.