If you have been looking into the real estate market as a prospective homeowner, you may have heard the term "resale homes" at least once or twice. It's not a common term, but it's coming up more and more in the real estate industry. So, what does that term actually mean? Here's what you need to know:
A Resale Home Is Just a Fancy Term for a Preowned Home
The truth is that the term "resale home" means nothing more than a home that's already been built and owned by someone else. It's an already established home, likely in a neighborhood full of established homes. Because the home is already built, you can't request customizations as a prospective buyer before making an offer.
However, you can make as many customizations as you would like after purchasing the house. It is just a matter of finding a renovation contractor to work with and budgeting for the customization projects that you want to complete. Keep in mind that the renovations may need to be approved by the lender depending on the scope and size, as well as your state and local laws.
The Pros and Cons of Buying a Resale Home
There are some pros and cons of buying a resale home for your family to live in. First and foremost, as mentioned, you can't move into a completely customized house. You will have to find a place that offers as many amenities and features that are on your wish list as possible, then decide whether it's feasible or affordable enough to make further modifications once you move in.
Another con is that you can't be completely sure about things like how nice the established neighbors are and whether the foundation is in tip-top shape. On the other hand, there are many pros to buying a resale home. One of the biggest benefits is that it's ready to move in once you seal the sales deal. You don't have to wait for construction to complete before you can start getting accustomed to your new place.
Another benefit is that you will likely be moving into a neighborhood that is already established. You will have the opportunity to talk to neighbors, walk around the block, and visit the local park before deciding whether a prospective resale home is right for you. Finally, buying a resale home gives you an opportunity to purchase an appraised place instead of guessing as to what a custom-built home will ultimately be appraised for.