Buying a resale flat? 10 tips for you

If chosen wisely and each step mentioned here followed cautiously, buying a resale house could be win-win for the buyer

Looking forward to live in your own home? You can either book a flat directly from the developer/builder or you can look out for units in resale. Resale units are those units that have been bought by someone from the builder and want to sell it.

Buying a flat in resale will save you time and if you are lucky, you may get it at a discounted price as the person selling it is sure to earn profit even if s/he sells at some price below the actual market rate. That will depend on the negotiation skills you have.

Buying a resale flat can include a lot of legal formalities that you need to go through thoroughly before making the final call. The first step towards buying or searching a house should be a list of the most important things that you must do.

Here are the 10 most important things you should take care of while searching your resale house.

Grab the helping hands: A real estate agent and a lawyer

The first important thing that you need when buying a flat in resale is a good property agent who will help you find a flat according to your needs. As a buyer, you will have to evaluate the location, society, neighbours, amenities and access to basic necessities.

You may wonder why you need an agent, when you can directly contact the owners too. Well other than the listings, an agent will tell you about the price trends of the localities, what are the positives and negatives of the societies?

And why do you need a lawyer?

Well, there are lots of legal formalities that you will have to go through while buying the flat that we will see further.

Know if there is a ‘chain of title/agreements’

There are chances that the house you want to buy had more than one owner in the past.

In that case, it is necessary to get all the legal documents of the past owners and get them tested by the lawyer.

If you are taking a loan to finance your house, then proper attested and stamped papers are a must.

Please click NEXT to continue reading

Resale units make good sense as you can get a good house in a good locality and at a good price. Resale units mostly have a lower per square feet price than the new units that are available directly from the developer.

Choose a property that is not very old. Anything that is between 0-10 years should be your choice.

Anything that is older than 10 years or more may give you some hassles.

Clear your myth; the flats are not old

The term resale can sometimes make you feel that the flat is old. The realty is different. Houses that you get in resale are new units.

These flats can be brand new, unused and just as same as the ones you buy from the developer.

Please click NEXT to continue reading

You may be thinking of buying a house next year, but you will have to plan your finances accordingly at least some time before especially if you are planning to take a loan.

In order to take a loan, you are eligible to pay a part of it as mortgage or margin money to be eligible for the rest of the amount.

Your eligibility to take the loan depends directly on the cost of the house you are willing to buy.

This is because; the bank or any financial institution that you take loan from decides your eligibility according to the margin amount you are ready to pay.

Know all the additional charges

Be smart and do not let the builders/sellers fool you with the hidden costs.

Sometimes a developer charges transfer costs that is so high that the cost of the flat can exceed the present market value.

So before you make the fee, be sure of what you have to pay and how much. 

Please click NEXT to continue reading

Knowing why an owner wants to let go her/his property will make it easier for you to decide whether you are investing in a genuine property or there is something wrong about it.

Knowing the reason for resale will just make you more confident if you are making the correct decision.

Make a profitable decision

Buying a house in resale comes with certain tax benefits.

If you buy the house under loan then you are eligible for a tax exemption.

This amount sums up to not more than 1.5 lakh of home loan interest under section 24B.

Please click NEXT to continue reading

If the house in question is already on loan, then the owner needs to obtain a letter from the bank that ensures the release of original documents on the payment of the loan amount.

Once the transaction is made from the buyer to the seller and then from seller to the bank, the documents are released.

It is always advisable to check the documents through a lawyer in order to save any future disturbances.

Enquire about the owner

When you are buying a flat from someone, it is a common scenario that the seller checks the buyer and its background.

Similarly, a buyer should also keep in mind to cross check the details of the owner and does a reference check.

Buying a house in resale is profitable in a lot of ways. They come with a ready to move in tag and you buy what is in front of you and not dream about something that the developers promise but do not fulfil. Also, it helps in saving some good amount of money. So, if chosen wisely and each step is followed cautiously, buying a house in resale is a good decision to make.