Many homebuyers often face a dilemma whether to buy a new unit directly from the developer, or one that is readily available for resale. Besides the cost, one important aspect is the emotional aspect, buying a brand new home against one which may or may not require minor repairs, and may need some tinkering with fixtures, fittings and maybe even the paint job and any other change according to the buyer’s preference.
Nevertheless, both have their merits and sets of buyers. Also, the dynamics of the two markets - the primary market (fresh booking) and the secondary market (resale) are very different, and they also come with their own set of costs, payment structures, and legal protections.
Recently, there has also been a shift in buyer priorities. While some prefer the flexibility and assurance of a brand-new home, others are drawn to the immediacy and negotiation leverage available in resale deals. Which brings to the real decision here how they work and what trade-offs are present in a market like today.
Advantages of a Fresh Booking
For buyers leaning toward under-construction or newly-completed projects, payment flexibility stands out. Developers often offer construction-linked payment schedules, allowing instalments to be tied to project milestones. This staggered approach can ease cash flow pressure, especially for first-time buyers.
Another advantage is the condition of the property. A new unit means no worn fittings, chipped walls, or repair work before moving in. After possession, the buyer can do the modifications according to his style, taste and preference.
Since the implementation of the Real Estate (Regulation and Development) Act, 2016 (RERA), all new and under-construction units must be registered with the authority. This regulatory framework increases transparency in project timelines, approvals, and financial dealings. In case of default or delay by a developer, buyers are now covered under the Rera Appellate Tribunal, which was not always there for some older transactions.
How Do Resale Properties Benefit Buyers?
The resale market offers a different advantage in terms of negotiation. During periods of low demand, sellers, whether investors or individual owners, may reduce prices to close deals quickly. In some cases, the discount on a resale unit can make it more attractive than a comparable fresh booking.
The greatest appeal of resale properties is that they are ready to move in. Most of them are either sold or under contract, meaning buyers can move in without having to wait years for construction.
This will also help buyers avoid the dual trouble of rent and home loan instalments.
Downsides of Fresh Booking
Fresh booking comes with simplistic appeal, but it is not risk-free. You could still end up waiting indefinitely as project delays are a given in India, and though Rera now provides legal recourse to buyers stymied by such delay, it might do little to reduce the financial stress on them if they have got both rent and equated monthly instalments (EMIs) to manage for extended periods of time.
There is also the tax factor under the current regime. Purchasing an under-construction property attracts 5 per cent Goods and Services Tax (GST) on the total cost. This fee is not applicable to re-sale of ready-to-move-in properties, which make them a much cheaper alternative for few buyers.
Risks with Resale Transactions
Resale purchases can require substantial upfront capital. Sellers often expect lump-sum payments or a few quick instalments, leaving less time for financing arrangements. For buyers relying heavily on home loans, this can be a challenge.
Broker involvement is another factor. While developers build brokerage fees into their pricing, resale deals often involve direct brokerage charges of 1–2 per cent of the property’s value, adding to the cost.
Regulatory coverage is also uneven. Properties for which an Occupation Certificate is issued before May 1, 2017 are not under the ambit of Rera. This absence of governance can expose buyers to legal and compliance risks. Some developers also charge a transfer fee on resale properties, which is generally between Rs 200 and Rs 1,000 per sq. ft. ft., and these can really add up to higher transaction prices.
