In a previous post, we talked about tips on how to buy foreclosed properties. After all, this could be a feasible option since this is generally cheaper than buying a brand-new property.
What about second-hand or previously-owned home?
This could be a good option as well. Pre-owned house is also more affordable. In fact, you can get a pre-owned three-bedroom house in the same area at a cheaper price compared to similar brand new unit.
Don’t get excited yet. There are several factors you need to look into before you buy a previously-owned house.
Check out these tips as your guide before you say yes to a certain property:
Tip No. 1: Know where to look.
Fortunately for you, finding a property to buy is easier even if you are miles away from home. There are dedicated websites that allow you to browse various property listings in and out of Metro Manila. You can also join groups on Facebook where people regularly post properties for sale.
Take advantage of these online platforms. The good news is you can even ask details about their listing, thereby making it easier for you to make a shortlist of prospective properties.
Tip No. 2: Location is key.
When it comes to buying a house, whether or not it is brand-new or pre-owned, location is very important. You want a house that is accessible to school, malls, supermarket, church, and hospital. You also want to live in a place where you don’t have to worry during rainy season. Surely, you don’t want to your family to live in a house where the surrounding environment has high crime rate.
In other words, don’t compromise the location in exchange of cheaper price. Safety and comfort should be among your priorities, so make sure you choose a location that could provide you with these.
Another reason why location is important is because of the market value of the property. Make sure that the house you plan to buy is within the range.
Tip No. 3: Make sure you inspect the property.
Pictures can be deceiving. Before you say yes to a property, especially for a pre-owned house, you need to see its condition first.
Inspection is crucial because you need to check not just the overall structure of the house but also every corner of it. The house will potentially be your home, which means you need to see its present condition including but not limited to:
- Structural integrity
- Electrical system
- Plumbing
- Cracks and leaks
- Roof, floor, and walls
Take these into account since the costs you might pay to make the house functional again may be equivalent to buying a brand-new unit. This could be a deal-breaker, so make sure you schedule that inspection.
Tip No. 4: Check the documents.
Aside from inspecting the property, you need to inspect the documents as well.
Are you buying the property from the owner as seen in the title? Are the real estate taxes paid and up to date? Is the owner selling the correct amount of land based on the title?
You need to make sure that the sale is legitimate, which is why checking the documents is a must.
Tip No. 5: Know your budget.
You found the perfect home for your family. You contacted the owner, had several exchanges online, and scheduled property viewing on your upcoming vacation.
As it turns out, the property you plan to buy is way out of your budget.
Before you go through the process of communication and inspection, you need to establish first how much you are willing to pay for your family home. Luckily, pre-owned houses are relatively cheaper than brand-new units, but still, it should be within your range.
What about financing? That is possible, but take note that lenders can only extend up to 60 or 70 percent of the purchase price. The balance will be shouldered by you, which means you need to withdraw money from your savings account to be able to buy that house.
Since you are buying a pre-owned property, consider the costs of repairs as well. You might have budget for your home but can your pocket handle thousands of pesos more for repairs?
Tip No. 6: Ask the neighborhood.
Sellers will always have their best foot forward. They want to sell the property so naturally, they will say only the best things.
If you’re unsure, then don’t be afraid the ask the neighborhood to verify. There may be incidents in the past that could be red flag for you, so make sure you ask.