Everything You Must Know Before Purchasing A Second Hand Home
It is now exceedingly challenging for Indians with average incomes to purchase a home as a result of the persistent acceleration rate at which property prices are rising.
The resale market comes to the rescue here. It is where you can investigate the possibility of purchasing a home from a previous owner. Instead of settling for a house in the suburbs, you might be able to negotiate a significant price reduction and purchase real estate in a more central location in the city. These are just two examples of the potential benefits of this strategy.
In addition, these apartments are typically in "move-in ready" condition, which means you won't need to spend money on furnishing the interior or purchasing necessities. Purchasing an older property does not require you to pay the service tax or the value-added tax. However, there are also potential drawbacks associated with the purchase of a pre-owned property. What initially appears to be a fantastic bargain might end up costing you a significant amount of money in the form of unexpected repairs and upkeep expenses.
Due to the fact that you will be purchasing a home that has previously been lived in, the process that you go through to make your investment in real estate should include some additional precautions. This is not to say that you should not conduct extensive research before making any investment in real estate.
Before you go ahead and purchase an older house, there are a few key considerations that we have outlined for you in this blog post.
Check the Location
When looking for home prices in Mumbai or any other Indian city, location is the first factor to consider. Whether it is near one's place of employment or the availability of high-quality social infrastructure services are of paramount importance. Rather than purchasing a brand new home in a distant suburb, it is wise to invest in an older home in a prime city location.
Know your Property’s real value
The valuation of a pre-owned piece of real estate is not a simple task to undertake. Sometimes the owners of the property are in a hurry to sell it, and as a result, they charge a significantly lower amount. In other instances, the property is quite expensive because it is in very good condition or because it offers better prospects for income and reinvestment. As a result of both of these, the cost is quite high.
It is recommended that you conduct sufficient market research and make direct contact with the owner of the property you are interested in purchasing so that you can negotiate the best price possible. It is essential to be aware of the fact that the cost of the property increases by at least 30 percent when an agent or intermediary is involved.
All Documents Should be Properly Maintained
A significant number of purported real estate transactions turn out to be fraudulent. Before putting your signature on the dotted line, you should perform a thorough review of the agreement paper. Because you are purchasing a property that has been previously owned, it is essential that you verify the existence of certain other documents and keep copies of them on hand. This includes the sale deed, a letter of credit from the bank, a possession certificate, the most recent receipt for property taxes, and papers proving occupancy.
The Actual Condition of the House
Buying an older home on the basis of first impressions is a bad idea; instead, you should conduct a careful analysis of the property's layout and construction. Find out how old the building is as well as the kind of pillars that have been used to make it resistant to natural disasters. Additionally, make sure to inspect the condition of the piping, the ceiling, and the sewage system. If you are thinking about renovating, consider using a horizontal carousel for your ceilings.
Negotiation Strategy
Now that you've inspected the property and are aware of its many flaws, it's time to negotiate a lower price. Keep in mind that the owner of the house will try to persuade you that he or she already has a good buyer who is willing to pay a higher price. You must resist being led to believe that you will be at a disadvantage in the business transaction. Instead, make an effort to persuade the landlord to grant you a sizable rent reduction in exchange for all of the amenities that are absent from the house as well as all of the repair costs that you will be responsible for in the coming years.
Conclusion
There is no denying the fact that the market for previously owned real estate continues to offer some of the most attractive purchase options available. If you are willing to dedicate some of your time to doing research, it is possible that you will find the home of your dreams at a price that is more affordable than new construction projects in the same area. In comparison to the situation a few years ago, financial institutions are now more open to the idea of lending money on previously owned homes.
Many of the people selling their homes are doing so because they want to move up to a more spacious dwelling. Even the owners favour it because there are no tax repercussions associated with using the proceeds from the sale to purchase another property; they favour accepting the full payment in the form of a check. Also, it is not a trivial matter that the customer receives a discount of 20 percent to 35 percent for purchasing pre-owned houses.
If you are on a tight budget, purchasing a previously owned home is a smart move. One thing to keep in mind is that instead of bringing along stress, your home should bring you nothing but happiness. Location, document verification, property valuation, physical condition, and negotiation are just some of the factors that must be taken into account to ensure a successful resale deal.
