OFFICE OF THE PRESIDENT • REPUBLIC OF THE PHILIPPINES
QUICKNEWS

Advantages & Disadvantages of Buying
a Pre-Owned Home

By: Genalin T. Todcor

Home Guaranty Corporation

Having your own brand new home built may not only be costly. Minding all those big and small detail can also be tiresome and time-consuming. For alternatives, you can purchase a newly-constructed home or buy a pre-owned one. There are loads of benefits, but at the same time, there are possible drawbacks in owning a resale house. Here are some pros and cons of buying a pre-owned home.

ADVANTAGES

  1. Time Saver
    Buying a pre-owned home saves you time. You don’t have to wait for months before moving in to your new home. As soon as you pay the money and the documents are signed, your ownership is established and you can immediately transfer to your home.
  2. Money Saver.
    A pre-owned home is usually cheaper than a newly-constructed one. There are no hidden charges typically associated with buying a new home. Although a pre-owned home was constructed or originally purchased at a higher price, you can buy it at a lower cost due to depreciation.  More often, the quality of construction materials in pre-owned homes is better. Also, features and upgrades you want may have already been installed so you no longer need to invest on them. Fixtures installed by the previous owner usually come with the home.
  3. Environment Saver
    Buying a pre-owned home help save the environment.  New construction materials mean cutting down more trees and harvesting more minerals. Wood, iron and cement are important components in constructing a house. Construction activities add to environmental degradation while buying pre-owned houses contribute to recycling.
  4. Effort Saver
    A pre-owned home saves a lot of effort. You are spared from pre-construction hassles such as thinking of the design and structure of the house, hiring a contractor, securing building permits, etc. In terms of warranty and other house components, negotiations may be done directly with the owner or through a broker. Also, with established neighborhood, you get to know the neighbors first before deciding to buy.

DISADVANTAGES

  1. Structural defects
    Through time, wear and tear is inevitable in a home. There may be flaws in a pre-owned home such as uneven floors, cracked tiles, wall stains and watermarks. To save cost, the previous owner may not have remodeled the home but just relied on paint jobs. Environmental health and fire hazards like lead paint, asbestos, or disintegrating electrical wiring may be unchecked.
  2. Customization deficit
    Unlike new homes, resale houses are not customized according to the design and model you want. What you see, is what you get. Older homes may not have provisions for modern or advanced safety installations such as smoke detectors and circuit breakers. Newer home designs combine function & style that are not often found in older homes. Repairs and replacements have to be done for the modified look you prefer.
  3. Neighborhood defect
    There is the possibility of a “not-so-pleasing” neighborhood. Surrounding homes may be in disrepair or abandoned. Among other imperfections, houses nearby may look rundown and falling apart with peeling paints, untended yards or barren lots. When you buy in a newly constructed location, there is assurance that neighboring houses are also new.
  4. Warranty deficit
    Buying a pre-owned home implies no guaranteed third-party warranty. You will just have to rely on the owner’s honesty about the condition of the house and the things in it. Materials, fixtures and furniture come with the house regardless of their working condition such as older appliances that use more electric power.

Before you commit to buying a pre-owned home, apply your research skills to get the best deals in the market. You can check the BBB+B PROGRAM website for pre-owned homes, and, if after much consideration, you’d rather buy a new home, check the BBB+B PROGRAM for developers’ website for new houses and condominiums. There’s probably one there that suits your needs and fits your budget.

 
 

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