What is a resale unit, and why can it cost less?

A resale unit is one its current owner is selling rather than the developer. The two are sold by two different sellers, and that is where a difference in price between them comes from.

What is a resale unit?

A resale unit is a home whose current owner — a person who bought it, or a broker acting for one — is selling it on. It is the same home the developer once sold, now offered by whoever holds it. A resale listing carries the unit's own details: its type, bedrooms, built-up area, floor, view and finishing, and the money the seller has put on it. Buying it means stepping into the seller's place as the buyer of that particular unit.

Why can a resale cost less than the developer's price?

Because two different sellers are pricing the same home. The developer works from a current price list for a new unit, while the owner prices the unit they hold and the position they are in. When an owner bought early, or wants to sell, that figure can fall below what the developer asks today for a comparable new home. The figure on a resale listing is the owner's asking price — what the seller asks — not a price the developer has set.

Does every resale carry a remaining balance?

Some resale units are fully paid and nothing is owed on them. Others still carry an amount owed to the developer, and the listing shows that amount, its instalment and how often it falls due, so a buyer can see what continues after the sale. The balance belongs to the unit, not to the advert.

What do I look at besides the price?

The unit's own details decide the comparison: type, built-up area, bedrooms, floor, view and finishing, and whether the home is ready, under construction or sold off-plan. Two homes of the same size can differ in layout, floor and outlook, and the stage of delivery changes what is being bought. Read those before reading the figure.

Can a resale unit be bought before it is delivered?

A resale unit can be offered off-plan, while it is still being built, or after it has been delivered. The listing states which stage the home has reached, and that stage decides what you receive on the day and what is still to be done.

What does the change of buyer involve?

Taking the seller's place is completed with the developer, who records the new buyer of the unit. That step carries its own terms and its own fee, and both are set out in the developer's papers for the unit. The unit's file is also where the home's registered position is read.

Can the price on the listing change?

The figure shown is an asking price, so the owner can accept a different one, and what the two of you agree is what the contract records. Nothing in the listing freezes the number.

What should I confirm before I pay anything?

Confirm that the seller holds the unit, and check the home's details against its own file; confirm the amount still owed to the developer and how the sale is completed with them; and read the contract for the figures, the delivery position and the date. Take the unit's details from the listing and its papers, not from a description alone.