Buying a Resale Home in a Seller’s Market: Tips for Success

By Lodha

Buying a home is like a dream come true; however, it also involves perusing multiple options before you land on the right one. While most of us associate buying a home with a new build, you can also invest in a resale home. A resale home has been put up for sale by the initial buyer. If you choose to buy a resale home, you transfer the home ownership in your name from a seller who had bought or had been assigned the property before. While buying a resale home offers plenty of advantages, it also requires skill. Especially in today’s sellers’ market, you must learn how to navigate resale home deals. Here is everything a buyer needs to know to home in on the perfect resale home without entering an unfavourable deal:

What are the Advantages of Investing in Resale Homes?

Resale homes can be a more economically feasible investment for buyers working within a budget. Here are a few of the many benefits of investing in a resale home:

Location:Resale homes are generally located in older neighbourhoods of the city that are well-planned, spacious, and residential in nature.

Larger Houses: In major metropolitan cities, you might find it difficult to find bigger homes. However, resale homes tend to be older and offer plenty of room, higher roofs, and popular layouts.

Ready to move in: Since you do not have to wait for construction to be complete and set up basic amenities, you can move into a resale home easily.

Save on Taxes: The Income Tax Act offers a tax exemption of up to 1 lakh and 5 lakhs on home loan interest. Essentially, buying a resale home could help you pay less tax.

Tips to Invest in a Resale home in a Sellers’ Market

Before investing in a resale home, it is best to keep an eye on the following factors before making a resalereal estate investment:

Age of the Property: While it is true that old is gold, it is best to avoid property that is more than 40-50 years old. Extremely old properties suffer structural damage, and the renovation and repairs needed become an extra cost.

Society Rules: If the resale home you choose is associated with a housing society, you should check the governing body’s rules and regulations, especially those regarding renovation. It is best to avoid investing in a resale home that cannot be renovated or repaired to your liking.

Home Insurance and Down Payment: Before investing in a resale home, it is best to keep in mind that you will get a lower insurance amount and shell out a higher down payment. You will have to plan your finances accordingly.

Pending Dues: Make sure to check of the previous owners of the house have cleared all pending dues on the property. From unpaid bills to maintenance dues, it is best to ensure all such charges are cleared by the owner responsible. If the previous owner bought the house using a loan, visit the lender to determine how much of the loan has been cleared and what is the pending amount.

Due Diligence: Take time to evaluate the documentation related to the property and ensure that all the paperwork is up to date and authentic. You can get the documents verified by a professional and make sure the title is clear before investing.

One of the best ways to ensure you enter into a resale home deal with your eyes wide open is to avoid rushing into making a purchase. Take the time needed to go over all the details and only purchase a resale home once you are satisfied on all fronts. If you want to buy a resale flat in fairly new residential complexes located in well-connected areas and featuring modern construction quality, at Lodha, we offer more than expected. At Lodha, we create homes that are built to last, created by the top designers in India, and serve as a buyer’s dream house.

At Lodha, we build spaces that can change hands and help residents build a beautiful life.