The 4 Things To Do Before Buying A Resale Home

  Author: Sanjay Sharma

While most people go for newly constructed properties, there are circumstances when you may want to buy a house from an owner, or buy a home in the secondary market. This has a couple of main advantages of buying a resale home.

One, you can often get the property at a price lower than a similar property a developer would offer you. Second, you can get possession of the property sooner than other alternatives, for instance, a property under construction. However, since, in this case, you are dealing with an individual, it is important that you do a proper due diligence of the property before buying it. Here are four things to do before buying a resale home.

Check ownership and other legal papers This is very important especially if the property has changed many hands. Layout approval, building permits and other such documents may also be checked online. Get the help of an expert like a property lawyer for checking that the papers are authentic and everything is in place.

Avoid homes with major structural changes These changes may not have been sanctioned by relevant authorities.  Otherwise, it may not be a property on the right side of the law and you may have to face hassles in the future. For example, a floor or even veranda, if not approved by authorities, may become a future liability for you.

Check if dues are paid These include property tax and utility bills like those for electricity and water. In case these are not paid by the existing owner, you would need to pay them from your own pocket after assuming ownership of the property. Property taxes, if not paid over the years, along with fines, will be a substantial amount that you will be liable to pay.

Steer clear of very old buildings The useful life of a building in India is typically 50 years. So, stay away from properties that are more than 25 years old, if you intend to take a 20-year home loan. Normally, a home will have a life of 25-35 years, so anything that is above 20 years may not be such a good buy. Also, be on the lookout even in case of newer homes which may have a lot of flaws covered by a paint job. In short, do a thorough check of the home including plumbing and electrical wiring.

Buying a home is one of the biggest financial decisions of your life and when buying a property in the secondary market, it is better to be safe than sorry. Compared to buying a new home from a reputed developer, in most cases, you need to be even more alert when buying a resale home.