Everyone wants their ideal home, whether it is a magnificent mansion in the heart of an urban settlement or a snug apartment overlooking the stunning view of the Arabian Sea. Therefore, it is essential to own the best property without compromises. However, the biggest problem arises when choosing the property you want for yourself or your family. Concerns about purchasing a resale property usually come up. Gharpedia provides you with the pros and cons of buying a resale property in this article, enabling you to make a more informed decision.
Most people believe that buying real estate property means buying a new house. Even though they want to shift into their dream house, the high cost of these new structures prevents them from doing so. Perhaps this explains why the resale property frenzy spread so quickly across the nation. Due to this, we have included a few facts concerning this type of real estate property here. But first, grasp the idea of a resale property.
What is a Resale Property?
So, what exactly does “resale” mean? Resale property is defined as property that has been sold to someone by the original owner. As an illustration, you purchased a property this year and decided to sell it after three years of use. If such is the case, your home will be referred to as a “resale property” since you aren’t selling an item that is brand new. The term “resale” is used because the property has either been used or is an old building.
New Build VS Resale Property
There are a lot of differences between a resale and a new property that should be known to everyone so that one can decide which one will be best suited for them. With this in mind, we have outlined the key distinctions between newly constructed and resale properties.
- A new property is not typically furnished, but a resale property can.
- Resale properties are ready to be moved into, but in the case of a new property, you would have to wait until the construction is over.
- In a real estate resale, you might have to do renovation work, but the same is optional in the case of a new property.
Pros and Cons of Buying a Resale Property
Before you are ready to buy a resale property, let’s look at the pros and cons of buying a resale property.
Pros/Advantages of Buying a Resale Home
Now that you know some primary differences between a resale and a new property, it’s time to discover the advantages of buying a resale home.
01. Cost-Effective Property Deal
One of the significant advantages of buying a resale home is its cost. Resale properties are less expensive than new ones in a given year, even though the real estate market observes price growth. The increment is always calculated based on the previous year’s property valuation. As a result, if a property was worth around Rs 5 lakh the last year, its new price this year will be around Rs 7 lakh. But when a new property is considered, its valuation will be more than Rs 10 lakh for the same year, which is why the resale properties are cheaper.
02. No Need To Do The Interior And Exterior
In most cases, the resale properties come with semi-furnished or fully-furnished interiors and exteriors. All the structures are properly constructed, be it the fencing around the front porch or the curtain brackets in the bedroom. Therefore, you won’t have to worry about redoing everything and wasting time and money.
03. Ready – to – move in Property
Resale properties are best suited for people in a hurry to move into a new place. This is because such houses are already constructed and have proper electricity, water supplies, and other amenities. Therefore, you will have the advantage of shifting into the house the next day after all the paperwork is completed and you have your keys.
04. Best for Short-Term Stays
Another major advantage of buying a resale home is its suitability for short-term stays. When you want to purchase a property for two to three years, there is no point in investing additional money in refurbishments and interior and exterior decorations. You only need to make a few changes to a resale home to change the ambience to your liking.
05. No Hassles of Documentation And Registration
With the resale property, you won’t have to worry about the documentation and registration of the property with the government. You don’t need to apply for any major changes except the name because the property is already registered and has active tax and electric bills.
06. Less Worry About Title
Tiresome paperwork is one of the disadvantages of buying a new home. If you are worried about the transfer of ownership process being extensive and cumbersome, there is nothing to be worried about in the case of real estate resale. This is because a notary stamp on the legal papers about ownership change will transfer the property into your name.
07. Mostly Near To the Main City
Typically, resale properties are located close to or in the heart of the city. This is because the outskirts weren’t developed when these properties were constructed. Therefore, their locations will be close to the central spots only.
After learning about the advantages of buying a resale home, let’s discover the disadvantages of buying a resale property.
Cons/Disadvantages of Buying A Resale Property
Even though the resale properties are quite beneficial, there are some drawbacks that one should be aware of.
01. Lesser Scope of Making Any Structural Changes
One of the major disadvantages of buying a resale property is the reduced scope for making major structural changes to the resale property. For example, if you want to change the backsplash tiles in the kitchen, you would have to remove the existing ones first and then instal the new ones.
02. May Have Fewer Amenities
Some resale properties may not have the amenities that are available in newly constructed houses. To avail of such amenities, you may have to pay extra money. When purchasing an older property, you may not have access to amenities such as a club, gym, pool, adequate parking space, and so on that come as benefits of new construction.
Additionally, you must make sure that the basic necessities, such as the supply of clean water, sufficient sewage facilities, security, parking, uninterrupted electricity supply etc., are in working condition.
03. Properties Are Not Available In Abundance In All Areas
Resale properties are usually present in abundance only in major urban settlements or right in the heart of the cities. If you want to have a house on the outskirts of a city or town, you may or may not get too many options in terms of resale properties.
After learning about the pros and cons of buying a resale property, you must consider the below precautions when buying a resale property.
Precautions To Consider When Buying a Resale Property
- On payment of a token amount, the seller will give you a photocopy of the ownership documents for the apartment. Get those documents checked by a lawyer to ensure that the title to the property is clear.
- Check if the property shows any sign of major repair; if major repairs are required, then it is best to avoid the deal. It is also important to consider the age of the structure. It is best to purchase a relatively new resale property to avoid any complications.
- Check if the seller has any dues pending with the builder. You can do so by getting an updated account statement from the developer, which shows how much payment has been made as well as the due amount. Keep an eye out for any late payment penalties or interest charges that the first buyer may owe.
- Developers may also charge a transfer fee if the apartment owner sells the flat before the conveyance of the project is completed. You can bargain with the seller, over the share of the charges that you have to bear.
- When purchasing a resale property, it is wise to inquire about its safety and security. Check to see if the property is adequately fenced and has security guards, CCTV, and other security mechanisms to ensure your and your family’s safety.
- Before purchasing a resale flat, check the availability of basic amenities such as a club, swimming pool, playground, park, golf course, and so on. The owner may charge you extra for such luxuries. Check for these amenities in a ready-to-move property only if you can afford to pay a higher price.
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Conclusion
Here, you have learned everything about the pros and cons of buying a resale property and whether it is suitable for you. Hope this article has provided you with better insights about buying a new house versus a used one. Finding the ideal home that will satisfy your needs and provide you with the perfect location to live in the future is all left for you to do. Additionally, ensure the real estate agent is dependable and trustworthy if you hire them to handle all the negotiations and other tasks.
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Know Pros & Cons of Buying Ready-to-Move-in Property
Author Bio
Sanjukta Ganguly – I am Sanjukta Ganguly from Kolkata. I have 9+ years of experience in content writing. I have written for multiple niches and genres like, health, travel, pregnancy, love and relationship, dating, hosting services, and WordPress, Press Release, Web Designing, Case Study, Thesis, Proof Reading, Academic Writing, etc. I can handle the work of 4000-5000 words daily.
