Looking to purchase a condo or lot in the secondary market for real estate? You will find that the market for pre-owned properties is a notable alternative to buying brand-new. However, buying pre-owned does warrant additional steps to ensure you get the best deal. In this article, we explore four top tips for buying pre-owned. But first, here are the benefits of purchasing in the secondary market.
What are the benefits of buying in the secondary market for real estate?
More space at a more reasonable price
Whether you buy brand-new or pre-owned, the prices of property per square meter are expected to appreciate over time. However, with pre-owned real estate, you have more chances of getting a larger space with a smaller price per square meter.
Some especially older properties may even have a larger footprint compared to their newer counterparts. Furthermore, pre-owned properties that may have seen years of wear and tear can affect their prices. However, be mindful that other factors can also impact selling price. For example, condominium units, brand new or otherwise, located in a business district will cost more per square meter, compared to those in less central locations. This is not necessarily a bad thing as buying in areas of high economic activity means your property will gain value over time, which in turn will affect its rental or resale potential.
Opportunity to remodel
A pre-owned property that may have seen better days doesn’t necessarily mean that it has no potential. In fact, professional interior designers or architects can walk into a dilapidated space and still see design possibilities.
While developers may allow you to purchase a property as a bare shell, brand new units are typically delivered with standard finishes, furniture, and appliances. If you wish to customize your home with interior design that aligns more with your taste, a pre-owned property provides greater flexibility to reconstruct, renovate, and redesign.
Flexibility on price
Another benefit of buying pre-owned is the opportunity to negotiate on the price. To do this however, you need to do some research. You could opt to look into comparable units in the market and make an offer based on other properties on sale. Even better, you can work with a professional real estate appraiser. Once you have come up with an offer price, put this in writing with your Letter of Intent.
4 Top Tips for buying pre-owned property in the secondary market
Conduct due diligence
First things, first, conduct due diligence before diving into making a Purchase Offer. Request for the public documents required for this, which must include the following:
For condominiums, request for a copy of the CCT (Condominium Certificate of Title) or for land, the TCT (Transfer Certificate of Title). Both are public documents. Then do not stop there. Verify the title by visiting the Land Registration Authority (LRA) Office or the Register of Deeds (RD) where the property is located.
Determine, as well, if the property has a “clean title.” The CCT and TCT will also reveal if it has any liens or encumbrances. Check the back of the document for any annotations such as an outstanding mortgage or an adverse claim. If there are no annotations, the title is clean.
Other documents that you need to request from the owner for your due diligence include the tax declaration, which can be secured from the assessor’s office. It must contain the details of the owner’s name, the classification of the property and its actual use, and finally, its assessed value and market value.
Next, request for the real property tax clearance, which can be secured from the treasurer’s office. This document provides proof that the owner has paid all taxes on the property.
Finally, request for a copy of the lot plan, vicinity map, and land use plan. These can be secured from the Tax Mapping office. And of course, do not forget to conduct an ocular inspection.
Do negotiate
As mentioned earlier, purchasing property in the secondary market opens opportunities for negotiating price, which can save you money or allow you to re-distribute your funds to any construction or renovation work. However make sure that the offer is fair and aligned with the fair market value or the assessment of an appraiser. Low-balling may turn off an owner and dampen your opportunity to secure the property. As an option, you may work with a real estate broker to represent you and negotiate on your behalf.
Be mindful of other expenses
Buying pre-owned property comes with additional expenses on the account of the buyer. In the Philippines, this includes: the documentary stamp tax, transfer tax, and the title registration fee.
Furthermore, make sure you don’t hurt your budget by being practical about the level of renovation work you will need to spend on. Some pre-owned properties may have been refurbished recently, so look into options like these that require minimal fixes and will allow you to move in sooner.
Find a pre-loved property at Rockwell Leasing and Secondary Sales
To help you find the right property, look to Rockwell Leasing and Secondary Sales.
Finding and curating your options is easy because you can compare properties according to location, unit type, and price. You can also view a photo of the property, its inclusions, as well as available amenities.
Whichever pre-owned property you choose, you can be assured of the distinct exclusivity, safety and security, convenience, and accessibility that underlines the signature Rockwell lifestyle.
Contact Rockwell Leasing and Secondary Sales today to learn more.