It’s true that the prices for resale properties are typically lower than new properties because the underlying land is included with a resale property. Investing in land and building a new home is more expensive and labor intensive. Investing in a resale property is preferable and it is considered one of the safest investments in today’s real estate market. If you are in a mood to buy a resale property then there are few important things that you must consider before buying.
- Market Knowledge: As we know the market value of any property is dynamic and it keeps changing based upon the laws supply and demand. You need to conduct your own in-depth research on resale properties before planning and gathering information from our team. The combination of your research and ours will guide you better throughout the process of buying a resale property.
- Budgeting: There are many costs associated with buying a resale property. These costs include:
- The total cost of property
- Transfer cost
- Registration cost
- Broker fees
You must bargain with the seller of the resale property to make sure that the sale price is within your budget.
- Home Loan: If you apply for a home loan to finance the purchase of a resale property, banks will make sure that all initial legal and technical checks are performed on the property. The first screening and legal support will be performed by your lender.
- Location: You’ve heard it before, “Location, Location, Location”. Location is a vital consideration while selecting a resale property. The price of a resale property is significantly affected by the market demand to live in a particular area. You need to keep abreast with current and future developments within the location in which you would like to reside. Additionally, consider the property’s proximity to public amenities and the location of your office.
- Due Diligence: Only invest in a resale property after having done in-depth research on the property. You need to check title records to ensure that the property belongs to the seller and to know if it is a mortgaged property or free from any liens.
- Age of the Property: The quality of the materials used to build a home degrades with each passing day; this is known as depreciation. It’s better not to invest in a property greater than twenty years of age without any repairs and maintenance work done. Without it is difficult to get a home loan on such properties.
- Services & Interiors: Will you pay premium for taking resale property? If yes, then you should ensure all is in good working condition by having a home inspection.
- Documentation &Procedures: Documents are vital for buying resale property. Major among them include ownership document, Utility payment, title clearance, property tax payment, receipt for registration fees, approval plan and many other property specific documents.
- Terms & Conditions: You must check all terms and conditions related to your payment, taxes, and other details at the time of negotiation. All terms and conditions should be in writing and signed by the buyer and seller before the transaction is completed.
- Valuation Report: One of the most vital points which can’t be ignored is the resale property’s valuation. The seller-buyer deed will be prepared based upon the valuation report. The valuation report will decide the amount that you will pay to the seller.