Pros & Cons of Buying a Resale House in India

In India, buying a home for anyone is a special thing and symbolizes wealth hence holds a significant place in the societal structure.

You can purchase a plot of land and then construct your own home they’re but the problem is the cost involved in this. It requires a huge investment to do so, hence, most people buy resale houses.

Unlike new properties, resale flats are properties that have been previously owned and are being sold again.

The decision to invest in a resale flat requires careful consideration, as various factors can influence its worth.

One of the primary advantages of buying a resale flat is the potential cost savings it offers. Generally, resale flats are priced lower compared to newly constructed ones.

This can be attributed to factors such as depreciation, market conditions, and the negotiation potential with the seller.

Buyers have the opportunity to purchase a property at a more affordable price, enabling them to make significant savings.

Additionally, buyers of resale flats can often avoid additional charges such as taxes, development fees, etc. which are typically applicable to new properties.

In this article, we will discuss the Pros & Cons of Buying a Resale House in India and lay out all the important points that you should consider before purchasing a property.

Pros & Cons of Buying a Resale House in India

Pros of Buying a Resale House:

The following are the pros that you’ll get while buying a resale house-

Cost Savings:

One of the advantages of purchasing a resale house is the potential for cost savings. Resale houses are generally priced lower compared to new constructions.

The price of a resale house takes into account factors such as depreciation, market conditions, and negotiation potential with the seller.

As a result, buyers have the opportunity to acquire a property at a more affordable price, allowing them to save money or invest in other aspects of homeownership.

Established Neighborhood and Amenities:

Resale houses are typically located in well-established neighborhoods that have already developed a range of amenities. These neighborhoods often have schools, parks, shopping centers, medical facilities, and transportation options nearby.

By choosing a resale house, buyers can immediately benefit from the existing infrastructure and enjoy the convenience and comfort of a fully developed community.

Before buying any house new or resale, whatever of your choice, you should always have greater consideration towards the amenities, nearby areas, school, nearby bus stand, metro, etc.

Greater Negotiation Potential:

When buying a resale house, there is often more room for negotiation compared to purchasing a new construction property.

Sellers of resale houses may be more willing to negotiate on the price, terms, or other aspects of the transaction.

This flexibility allows buyers to potentially secure a better deal or make adjustments to suit their specific needs.

Reduced Waiting Time:

New construction requires a lot of time and money to get completed and can put your possession time back, so, if you are selling your existing house and relocating to this one then you’ll have to live on rent for a few months.

Unlike new construction projects that can take months or even years to complete, resale houses are readily available for immediate occupancy.

This eliminates the waiting period associated with new constructions, allowing buyers to move in without delays.

It can be particularly advantageous for individuals who need to find a home quickly or those looking to avoid the uncertainty and inconvenience of construction timelines.

Historical and Inspection Records:

Resale houses have a history of ownership and maintenance, providing buyers with access to records that can offer insights into the property’s condition.

This includes past inspections, repairs, and any notable events associated with the house. Access to this information can help buyers make informed decisions and assess the property’s overall condition. This historical data o documentation also gives you strong ownership rights over the property.

Cons of Buying a Resale House:

The following are the cons of buying a resale house in India-

Maintenance and Repairs:

Resale houses may require more maintenance and repairs compared to new construction properties.

As the house has been previously occupied, there may be wear and tear, outdated systems, or the need for cosmetic updates.

Buyers should carefully assess the condition of the house and factor in potential costs for renovations or repairs.

Limited Customization:

Unlike buying a new construction property, where buyers have the option to customize the layout, finishes, and design, resale houses may have a limited scope for customization.

 The existing layout and features may not align perfectly with the buyer’s preferences, and making significant changes may involve additional expenses and renovation work.

The remodeling of the house must be evaluated based on the present structure which limits the scope of remodeling.

Potential Structural Issues:

Resale houses, especially older ones, may have hidden structural issues that require attention and investment.

It’s crucial to conduct a thorough inspection or hire a professional to assess the condition of the house and identify any underlying problems such as foundation issues, plumbing or electrical problems, or roof damage.

Financing Challenges:

Depending on the age and condition of the house, buyers may encounter challenges in securing financing.

Lenders may have stricter requirements or offer less favorable loan terms for older properties. It’s advisable to consult with lenders early in the process to understand the financing options available for resale houses.

Also, the interest rate offered by the bank on the resale houses is higher when compared with the newer structure which puts the overall cost a little up.

Precaution Before Buying the House

Before buying a house, it’s essential to take certain precautions to ensure a smooth and successful purchase. Here are some important precautions to consider:

  • Thoroughly research the real estate market in the area where you plan to buy a house. Understand the current market conditions, price trends, and factors that may affect property values. This information will help you make an informed decision and negotiate effectively.
  • Assess your financial situation and determine a realistic budget for buying a house. Consider factors such as down payment, mortgage pre-approval, closing costs, and ongoing expenses like property taxes, insurance, and maintenance. Stick to your budget to avoid financial strain in the future.
  • Arrange for a comprehensive inspection of the property by a qualified home inspector. Inspections can uncover structural problems, electrical or plumbing issues, pest infestations, or other concerns. The inspector’s report will provide valuable insights into the condition of the house and help you make an informed decision.
  • Carefully review all legal documents related to the property, such as the title deed, ownership documents, building plans, and any relevant permits or clearances. Ensure that the property has a clear and marketable title, free from any encumbrances or disputes. Seek legal advice to verify the authenticity and validity of the documents.
  • Secure pre-approval for a mortgage or arrange for adequate financing before making an offer on a house. Compare different lenders, loan terms, and interest rates to get the best financing option suited to your needs.


Buying a house is a major financial decision that requires careful consideration and precautionary measures.

By following the recommended precautions before purchasing a house, you can minimize risks, make informed decisions, and increase the chances of a successful and satisfying home-buying experience.

Thorough research of the real estate market, determining a realistic budget, and engaging professionals such as real estate agents, home inspectors, and lawyers are essential steps to ensure a smooth transaction.

But, if you want to do it yourself then you’ll have to do thorough research on the property and the property documentation.

Property inspections and reviewing legal documents are crucial to uncovering any potential issues or discrepancies related to the property.

By taking these precautions, you can minimize the risks associated with purchasing a house and increase your chances of finding the right property that aligns with your needs, budget, and plans.

The process may require time, effort, and professional assistance, but the rewards of finding your dream home and making a sound investment are well worth it.