What Is a Resale Home in Real Estate?
A resale home is a previously owned or occupied property that is being sold by its current owner. Resale homes make up the majority of real estate transactions and typically appear on the MLS through real estate agents or FSBO sellers.
Resale Home: Simple Definition
A resale home is any property that is not newly built and has had at least one previous owner. These homes vary widely in age, condition, and architectural style. When a resale home is listed for sale, it is typically marketed through the MLS and evaluated through home inspections, appraisals, and seller disclosures.
How Resale Homes Work
Resale homes follow traditional real estate transaction steps and often include more negotiation and due diligence than new construction. Buyers evaluate the home’s condition, compare it to similar sales, and review the seller’s required disclosures.
- Listed on the MLS by agents or FSBO sellers
- Subject to contingencies such as inspections and appraisals
- Buyers receive a seller’s disclosure statement
- More negotiation power compared to new construction
- Pricing based on market value and comparable sales
Pros of Resale Homes
- Established neighborhoods: Mature landscaping, local amenities, and stable communities.
- Better affordability: Often lower price per square foot than new construction.
- More negotiation room: Buyers can negotiate price, repairs, credits, and closing terms.
- Immediate availability: Resale homes can typically close in 30–45 days.
- Unique features: Character, craftsmanship, and historical architecture.
Cons of Resale Homes
- Maintenance and repairs: Older systems may need updating or replacement.
- Energy efficiency varies: Older construction may lack modern insulation and systems.
- Hidden issues: Defects may arise even after a home inspection.
- Disclosure risks: Buyers rely on the seller’s disclosure statement and duty to disclose latent defects.
Related Real Estate Terms
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