Buying a resale property has its own merits. You can choose your location as per your budget. You deal on a one-to-one basis with the seller. You get the freedom to bargain. However you have to keep in mind that you are purchasing the house from an individual and not from a builder whose credibility can be established more easily. Outlined below are a few things to consider while buying a property on resale;

Market knowledge

The market value of the property keeps on changing in accordance with the demand. Home buyers should conduct an in-depth research about the market value of the resale property you wish to purchase.


Buying a resale property involves various aspects like the total cost of the property that includes the registration cost, transfer cost etc. Make full use of the liberty to bargain with the seller, an advantage that is unique while buying a resale property.


It is important to ensure that there are no claimants other than the seller and his nominees for the property. Also make sure that all the housing society dues are paid before the sale. It is advisable to hire a lawyer during the deal.

Home loan

While purchasing a property on resale, you should prefer to go for a home loan through a bank or a lending institution as they will conduct all the legal and technical checks for the property. You can also find out how much your home loan installment might be, using our home loan EMI calculator.

Age of the property

Ideally you should not think of investing in a property that is very old. The older the construction, the more are the repairing and maintenance costs. It also becomes difficult to avail a home loan for such a property.

Terms and conditions

All the terms and conditions pertaining to payment, pending work, taxes and other details that were discussed during the negotiation should be in writing and signed by you and the seller. This will facilitate a smooth transaction.


It is better to have a valuation report about the amount you will pay to the seller.
If you buy a home, the plus point is that unlike anything else that you buy, property prices keep rising in most of the cases. It can fetch you considerable capital appreciation as years go by.   

Additional Read: Tier 1 Cities v/s Tier 2 Cities - The Better Choice for Buying a House - Explained!

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.