Real Estate Resales: Advantages and Disadvantages

When it comes to searching for a property, whether for investment or to live in, and with so many options in the market, the question arises: is it better to buy a resale or a pre-construction property? Both options have their differences, advantages, and disadvantages that are worth considering. Today, in this article, we will explore the advantages and disadvantages of the resales to help you make an informed decision.

First, let’s understand the concept:

A real estate resale is when a property that has already been built and has had at least one previous owner is put on the market. In other words, you are buying a house, apartment, or land that has already been owned by someone else. In a resale, you can physically see the property before buying it, which allows you to assess its condition and quality. In summary, a resale is like buying something second-hand, but in this case, it is an immovable property that someone else has used and is now putting up for sale.

Like in everything else, there are advantages and disadvantages in a resale; let’s analyze them together.

Advantages of a resale:

Buying a resale property has several advantages that are worth considering. Here are some of them:

1. Visibility and evaluation: “What you see is what you get.” The main advantage is that you can physically see the property before buying it. This allows you to assess its condition, size, layout, and construction quality. You can inspect the spaces, review the finishes, and determine if it meets your needs and preferences.
2. Established location: Resale properties are usually located in established and consolidated areas. This means that there are already nearby services and infrastructure, such as schools, supermarkets, parks, and public transportation. You can evaluate the neighborhood and get to know the surroundings before making a decision.
3. Faster move-in time: In general, the waiting time to move into a resale property is shorter compared to a pre-construction property. Once the negotiation is completed and the necessary legal procedures are carried out, you can immediately move into your new home or put it to work right away.
4. Known additional costs: In a resale, you are more likely to know the additional costs associated with the property, such as maintenance fees, taxes, and other expenses. You can obtain accurate information about recurring payments and anticipate them when calculating your budget.
5. Property history: When buying a resale, you can research and obtain information about the property’s history. You can find out about its historical value, appreciation over time, and possible records of major maintenance or repairs. This can give you greater peace of mind when making a decision.
6. Furniture and equipment: In many (if not most) cases, real estate resales are already fully equipped or even furnished; which will also save you time and money.
7. Hidden Defects: Being a “second-hand” property, it is likely that any construction defects it may have presented in its early months or years of life have already been repaired by the current owner, so you won’t have to deal with them.

Now, let’s look at the other side of the coin.

Disadvantages of acquiring a resale property:

1. Limited customization: When acquiring a resale property, you may have limitations regarding the customization of the house. It is likely that it is already designed and decorated according to the tastes and preferences of the previous owner. If you have specific preferences regarding the layout or finishes, you may not be able to easily adjust them.
2. Possible maintenance costs: Depending on the age and condition of the resale property, you may need to face additional maintenance costs. Unexpected repairs or necessary updates to adapt the property to your needs may arise. Make sure to conduct a thorough inspection before purchase to assess any potential issues.
3. Inventory limitations: In some areas, especially in highly popular locations or in tight real estate markets, the availability of resale properties may be limited. This means that it may be more difficult to find exactly what you are looking for in terms of location, features, and price. You may need to be patient and stay alert to new opportunities in the market.
4. Possible outdated features: Resale properties may not have the latest advancements in terms of technology or energy efficiency. You may need to invest in upgrades to make it more modern and efficient, which could involve additional expenses.

Remember that the advantages and disadvantages can vary depending on the specific situation of each resale property, as well as the specific market situation at the time of your search. Conduct a thorough assessment of your needs, expectations, and budget, and consider all the advantages and disadvantages before making a decision. But most importantly, approach and seek advice from experts.

If you want to learn about the advantages and disadvantages of their counterpart, “pre-construction properties,” stay tuned for our next entry.