Buying a Resale House vs Buying a New House: A Brief Guide

Resale Home Buying

In this post: We explore the pros and cons of resale house buying versus buying a new one.

The Price at which You Buy

A new house comes with a premium price when compared to an resale house. A resale house might just be 5 or 7 years old. If this is the case, then you get more for your money than buying a brand new house.

Is Buying a Resale Property a Wise Investment?

When compared to a new house, you will surely put down a little less when buying a resale house. If your intention is to hold onto the property for a while and then sell it, you may struggle to get a reasonable profit – when compared to a new house. However, if you wish to buy and stick with it forever, it’s the best investment decision you will make. Considering other factors mentioned below are met.

Verifying Legal Documents

Resale houses (which are older than 20 or 30 years) need thorough paper verification. Check if the housing records are available in the local municipal books. Apart from this, the property should have clear titles. Obtain purchase agreement, sale deed, no objection certificate from the society, a copy of builder buyer agreement and documents that establish ownership of previous buyers.

Verify all Pending Costs and Payments

Always check for pending payments and taxes for a resale property. Ensure there are no dues on the property such as electricity bill, water bill, property tax bill etc. Check from various sources to know if there are any pending charges on the property.

Resale Houses are Eligible for Home Loans

Banks offer loans for resale property as well. However, banks conduct technical verification of the property and ascertain the building conditions. The loan component depends upon the institution’s policy on the age of construction. However, buyers need to know that banks do not lend more than the property value mentioned in the sale deed.

How Sustainable are Resale Houses?

If you are building a new house or buying one which is built recently, then the house will be built to match modern day sustainable construction standards. resale houses may not necessarily have been built this way. Practices such as houses built with clay tiles, insulation, natural lighting, etc. all factor in influencing your monthly maintenance costs. Resale houses may need certain fixtures and modifications to bring it up to standard – but at an additional cost.

Other Charges to Pay Attention to

Old properties have less to no amenities. If this is the case, then talk to the community office and enquire the amenities and how much maintenance you need to pay each year – also enquire how much the maintenance costs appreciate each year.

You also need to pay attention to structural defects inside and outside the house. Hire an expert and arrange for thorough inspection on the entire building structure, building plan, walls and cracks, sewage outlets etc. Sign up to buy only when your standards are met and when you consider structural update costs.

At the end of the day, it is always necessary to make an informed decision while buying a resale property. Talk to our consultant today and check our list of verified resale properties which are ready to be bought right away. Contact our qualified consultant at +917026895895.