Buying a resale property is also a good decision rather than buying a new construction one unless and until the property is in good condition. The property can be purchased at a much-negotiated rate by the buyer. Thus for both persons, there is a win-win situation as the seller surely gets a higher value than the purchasing cost of the property while the buyer gets the negotiated rate than the market value. Also, home loans are easily available for the purchase of the property. Banks provide 80% of the property value as loans, while the rest needs to be done as down-payment. Thus the loan to value ratio is around 80%. The bank disburses the complete amount of the home loans after the approval of whatever the loan is being approved. And also, immediate possession can be taken by the buyer after the purchase of the property. The property should be in good condition while purchasing, and the condition of the building should not be in the dilapidated stage. If the condition of the flat is in bad shape, then, in that case, the buyer should either ask to get the maintenance done or ask for the reduction in the value of the property.
The resale flats are sometimes in very good condition. They are also renovated ones or else sometimes are in a dire condition wherein the electrification of the house is damaged, sometimes bathroom fittings are damaged, or else the paint is damaged. Thus in case of the bad shape of the house from the inside, it is not desirable to purchase a flat in poor condition. If the property is already renovated and has a good condition of the paint, bathroom fittings, and electrical fitting, it is better to proceed with the purchase. Also, the building should have a lift and proper view from the building if not excellent then. The house should also be pleasant, have adequate sunlight in the morning, and have proper ventilation. Another drawback of the old buildings is that poor architecture. Such buildings should be avoided. The good feeling of a new construction building can never be felt in the case of the old building. The age-old of the building also matters as the building with less than five years old construction are the most desirable ones.
Following are the things to be considered in case of the purchase of a resale flat:
- Title verification of the documents:
The buyer should verify in the registrar’s office regarding the ownership of the property. The buyer should ensure that there should be proper disclosure of the property owners, and no one should be hidden in case of the title while purchasing a property. In case of purchase of the property wherein, some co-owner was hidden can lead to disputes with the property.
- NOC from the bank:
The bank should provide approval for the loans for a particular property. The bank verifies the property’s titles and does physical verification of the property before the approval of loans. Thus, when the bank approves the loan, it shows that the property has got proper clearance for the house.
- Condition of the flat:
The condition of the flat should be in proper condition while purchasing the property. In other cases, if the buyer comes to know that there are major faults that need to be repaired, then, in that case, the buyer may be at a loss. As the chances are high that the condition of the bathroom fitting, toilets, or the electrification of the house may be faulty, this can lead to major repairs in the building.
- Pending dues or arrears of the flat:
The ownership of the flat comes with many liabilities like the property tax, electricity bill, water bill, society maintenance, telephone bill of a fixed-line connection, piped gas bill. Etc. Thus all such dues should get cleared before the sale of the flat by the seller. With the effective date of the possession, the liability gets transferred to the property’s new owner.
- Availability of basic facilities in the building:
The flat should have a proper electric supply and water supply. The quantity of the supply of water varies according to the building to building. Also, the consumption varies as some properties have fewer people they stay in a while in some buildings, there are many people staying in the flats, which can lead to a shortage of water. Also, the supply may be un-even in the case of the various localities in the same city. Thus these things should be taken into consideration.
While buying the resale property, the buyer should verify the problems faced by the existing owners related to water supply, chaos, and traffic at the peripheral roads. Also, the bank should approve the home loans for a particular house if necessary. Thus, if the buyer makes the right choice, then, in that case, the buyer can save money by negotiation and get a better deal at an affordable cost than the new construction ones.