Buying a Resale House in India? The Only Practical Guide You Need

Why Not To Buy a House

Equities in India earn 12–18% compounded. Residential rental yields in India earn you 2–3% a year (often even lesser after taxes and maintenance). From a pure financial view, renting is financially smarter than buying.

Why Buy a House

But maximizing net worth isn’t the only reason to live. There are valid non-financial reasons to purchase a home. Below are two strong reasons when buying a house can be a good decision:

• A good home shapes your family’s daily mood, health, productivity, and sanity. If you work remotely, it’s your whole world. These intangible benefits far outweigh financial considerations for some. As Shreyas Doshi notes:

• In a similar vein, another perspective by designer Sidharth Gehlot emphasizes investing with the next generation in mind – thinking beyond just your own lifetime and considering your children’s future in your decisions.

Be Aware of the Risks

If you do decide to take the plunge, be very mindful of the following risks and realities of homeownership in India:

• Big Decision: Buying a house is often the single biggest purchase most families make in their lives.
• Illiquidity & Irreversibility: Buying a house locks you in. Real estate is illiquid, slow to sell, and costly to reverse. Unlike stocks, you can’t click ‘undo’. Buy only if you’re ready to stay put for years.
• Variable Quality & Builder Risk: Buying a house isn’t like buying an iPhone, where every unit meets a uniform standard of quality. Construction standards vary widely by builder, region, and project. Some projects drag on for decades. Reforms like RERA help, but you still need due diligence: verify the builder, check legal clearances, trust nothing you haven’t seen.
• Rising Prices – a Race Against Time: In India, good property rarely gets cheaper. Inflation erodes your rupee while demand outpaces supply in prime areas. If you know you’ll buy eventually, waiting too long can price you out of the localities you want. Buy when you’re stable—delaying means paying an inflation tax.

In summary, go into homeownership with eyes wide open. It’s a major commitment that comes with real risks – financial, legal, and lifestyle.

Be Ready To Compromise

No house checks every box. Budget constraints and market availability forces tradeoffs. Realize that the same need can be met to varying degrees. For example, want a boat? You could buy a kayak, a speedboat, or a yacht. Similarly, houses are on a spectrum too. Know your must-haves needs. Clarity will take you a long way in making getting through this decision.

There are two broad extreme approaches:

1. Scope-first: You fix what your needs and are flexible with budget and timeline (how long you are ready to wait for it.) For example, you decide “I must have a 3-bedroom independent house in XYZ neighborhood with a garden” and you prioritize getting that, even if it costs more than you planned or takes a year longer to find.
2. Appetite-first: You fix the budget and timeline and are flexible with some of your needs. For example, you decide “I will spend at most ₹X and I need to move in by June”. Within that frame, you might have to adjust your expectations on location, size, or features. Perhaps you compromise on a smaller property or a different neighborhood to stay under budget.

In practice, most home-buying decisions fall somewhere in the middle of these two extremes. You’ll likely fix certain must-haves and be flexible on others. It’s a bit of a dance: maybe you stretch your budget a little but also let go of that extra guest bedroom you wanted, for instance.

In the end, you’ll compromise on something – it’s better to decide intentionally what those compromises will be, rather than having reality decide for you. Maybe location is non-negotiable for you, but you’ll accept a smaller home (or vice versa). Maybe you’re willing to do some renovations (compromise on immediate move-in condition) in order to get an otherwise perfect home within budget. Figure out your priorities early; it will make your search more focused and less stressful.

40% of budget: Locality

Location, location, location – it’s a cliché, but for good reason. The locality you choose is one of the biggest determinants of a property’s cost (and its long-term value). But beyond price, the neighborhood will directly impact your daily life and your family’s experience. Here are the key factors to evaluate when choosing a locality:

Who will your neighbors be? The people you live among will form the community your children grow up in, and that social environment is a huge influence on development and quality of life.

• In many Indian cities, localities develop a character or demographic of their own. (For example, Delhi’s Chittaranjan Park has a high concentration of Bengalis and a distinctly Bengali culture; certain colonies in South Delhi predominantly house government officials, or people from a specific profession, or business families, etc.) Think about whether the prevalent culture of the area suits you.
• Also, consider the activity level of the community. What’s the point of a good neighborhood if neighbors never interact? Observe if the community is active and friendly: Do children play outside in the parks? Do you see both elderly people and young kids out and about (an indicator of a safe, inclusive environment)? Does the community come together to celebrate festivals (Diwali, Independence Day, etc.) or hold events? A vibrant, close-knit community can greatly enrich your living experience.

Governance (RWA Management): Many residential areas, especially gated colonies or apartment complexes, have a Residents’ Welfare Association (RWA) or management society. The effectiveness of this body affects day-to-day life. A proactive RWA can solve problems and maintain standards, whereas a dysfunctional one can make living there frustrating. Try to find out if residents are generally satisfied with the RWA governance.

How well is the neighborhood managed? 

• Are common areas clean and well-maintained? Is garbage collected regularly?
• Is security organized (guards, CCTV if needed)? The RWA’s attitude toward safety is also telling: Do they insist on overly fortress-like measures (huge grills, fences everywhere) indicating high security concerns, or is the area naturally open and safe? For instance, if you see every house installed with thick iron bars and spikes, it could signal a genuine security problem in the area (or at least a perceived one). Ideally, a locality feels secure without needing extreme defensive architecture – perhaps a gated colony with controlled entry, CCTV cameras, and guards is sufficient. 
• Walk around at night to gauge if the streets feel safe and well-lit.
• You can also check crime rates or ask around about incidents of theft or violence.
• Safety isn’t just about crime – it’s also about traffic (can kids walk or cycle safely?) and general peace of mind.

Access to Municipal Services: It’s an uncomfortable truth, but different neighborhoods within the same city can have very different levels of municipal services. High-property-tax areas often enjoy better civic amenities (because the municipality prioritizes those who pay more). Check the basics: 

• Water supply (Does the area get reliable municipal water, or do residents depend on water tankers/boring wells? Any history of water shortages?) Test the water quality if possible. What is the pH level (ideal around 6.5–8.5) and the TDS (Total Dissolved Solids) of the water?
• Electricity (Is the power supply stable? How frequent are outages, and is there infrastructure for backup generators?)
• Waste management (Are the garbage bins emptied regularly? Streets clean?)
• Drainage (Does the area flood during heavy rains/monsoons? Some low-lying pockets are notorious for waterlogging).
• Police and fire services – is there a police station or fire station nearby, and does the locality generally get adequate patrols and attention? These factors will affect your comfort and safety in the long run.

Balance Quiet & Peace with Proximity to Markets: Consider the locality’s access to daily needs and lifestyle amenities.

• Are there markets, grocery stores, pharmacies, etc., within a convenient distance?
• How about restaurants, cafés, or parks? If you like to step out for coffee or need a place to hold meetings, it’s nice to have some shops or cafes nearby.
• If you have a larger family and occasionally host guests for functions, are there affordable yet quality hotels or guest houses in the vicinity?
• Being near good schools, hospitals, and even temples or community centers can also be important depending on your family’s needs.

Walkability: Check if the locality has sidewalks/pavements and safe crossings. Can you or your kids walk to a nearby park, shop, or friend’s house without dodging traffic?

Accessibility: A house may be perfect in itself, but if every outing means sitting in traffic jams for an hour, it can seriously affect your quality of life. Hence, consider how well-connected is the area to other parts of the city?

• Road: How far is it from major arterial roads or highways?
• Metro: If the city has a metro or suburban rail network, are you close to at least two different lines?
• Commute Time: How far are you from your school and office? What are the other employment opportunities you’d consider in the future?
• Air/Train: If you travel frequently, consider the distance to the airport or train station. 
• Meet People: In multi-city metropolitan regions like Delhi-NCR, think about connectivity to all the sister cities: if you live in Noida, how easy is it to get to Gurgaon or central Delhi, etc. 

Greenery and Open Spaces: Green cover is more than just an aesthetic bonus – in cities plagued by air pollution, noise pollution and heat, it’s a lifesaver. Greenery even boosts property values over time.

• Parks: Are there well-maintained parks or playgrounds where you can walk, jog, or where kids can play?
• Density: Look at how congested or spacious the neighborhood is. Are houses packed tightly with barely any gap, or is there breathing room? High density can mean more noise and less privacy, but also sometimes a more vibrant community feel – it depends on personal preference.
• Parking: Even if your prospective house has reserved parking for your own vehicle, what about when guests visit? Is there sufficient public parking?

Externalities (Noise/Pollution): Be aware of the less obvious factors like noise and air quality.

• Noise: Is the locality under a flight path (airplane noise), or next to a busy highway or railway line? Visit at different times of day to gauge noise levels – a place that’s quiet at midday might turn loud at night if there’s a night market or a bar nearby, for example.
• Dust: If the area is near an industrial zone or a major construction site, you might have a layer of dust on everything daily. 
• Air Quality: Check if the area has any specific pollution sources (e.g., garbage dump nearby, lots of diesel generators running due to power cuts, etc.).

Desirability drives land price: strong community, good infrastructure, healthy environment push rates up. Worth it—structures age, land holds or appreciates. You can rebuild walls, not location. Location choice is irreversible; it dictates lifestyle and long-term value.

20% of budget: Plot

Even within a great locality, not all plots are equal. Two homes on the same street can have different micro-advantages that affect their value and livability.

• Open Sides: In how many directions is the house open and unobstructed by other buildings? A house can be one-side open, two-side open, three-side open. More open sides generally means better ventilation, sunlight, and privacy, and thus a higher value.
• View and Outlook: What do you see when you look out the windows or stand on the balcony? Is it a pleasant park view or is it just the wall of a neighbor’s house? A good view can greatly enhance daily enjoyment of the home (and also future resale value). However, check if the view is permanent. That empty plot giving you a green vista could someday become a multi-story building blocking your light and view.
• Ambient Noise: Stand at the plot at different times to gauge the noise levels. Is it on a busy road where honking is constant? Is there a mosque nearby with loudspeakers, or a market that gets noisy?
• Immediate Neighbors: This can impact everything from security to peace. If possible, try to learn a bit about them.
• Vastu: The orientation of the plot/house (which direction it faces) matters for practical and cultural reasons. Sunlight patterns depend on orientation – e.g., north-facing houses get softer light in India, west-facing might get harsh afternoon sun heating the house, etc. Cross-ventilation often depends on orientation relative to prevailing winds.
• Size and Buildability: How large is the plot, and how much of it can you actually build on? In cities, there will be building by-laws and FSI/FAR (Floor Space Index/Floor Area Ratio) regulations determining how many square feet you can construct on a given plot size.
• Road Access: Is there more than one approach road to the plot? This can affect both convenience and property value.

If you’re budget-conscious, you might choose the right locality but compromise on the plot specifics. For example, you may accept a plot that’s a bit irregular or one that’s not park-facing in order to afford being in a prime neighborhood. That’s okay – the broader benefits of the locality still apply, and you can often improve the house/building itself later. Just be aware of what you’re trading off.

20% of budget: Building

20% of budget: Interiors

Congratulations – if you’ve made it this far in the checklist, you’ve covered the major chunk (land, locality, structure) which typically account for 80% or more of the cost and effort. Now the remaining 20% is the interior build-out and finishes, which are largely within your control after purchase. These include things like floor tiles, paint, interior layout changes, kitchen fittings, wardrobes, etc. They are “reversible” factors (you can change them relatively easily compared to, say, moving the house to a new location!).

However, evaluating the current state of the interiors is still important because it tells you how much additional time/money you’ll spend after buying and what constraints you might face.

Often, what you want to do with interiors can be constrained by decisions already baked into the house’s design (for example, you can’t easily move a bathroom without major plumbing work, or you may find a pillar right where you wanted an open kitchen, etc.). As product designer Ryan Singer might put it, the earlier phases set certain constraints on later choices (as referenced earlier: what’s already built will limit what you can change in the interior without significant cost).

Here’s what to evaluate on the interior/house build front:

Vastu and Layout: We touched on Vastu for the plot, but even within a flat or house, some people consider internal Vastu:

• The most common basic check is the direction the front door faces when exiting – many prefer east or north.
• In which direction should the temple be?
• Where should the stove and sink be placed inside the kitchen?

Cracks and Finishes: Look for any cracks in the internal walls or ceiling. As mentioned, determine if it’s a superficial plaster crack or something structural. How to tell? 

• Superficial cracks (often in a top layer of plaster or paint) usually are thin, may run in random patterns, and when you tap near them, the wall still sounds solid. They often occur due to temperature changes or a thick layer of plaster of Paris (POP) that has detached slightly from the wall. These are usually cosmetic issues and can be fixed with re-plastering or filling, at relatively low cost.
• In contrast, a structural crack might be wider than a few millimeters, possibly diagonal across a wall or at beam-column junctions, and could indicate movement. If you see something like that, you’d want a structural engineer to examine it.

Seepage and Damp (again): Yes, this was under structure too, but check inside as well.

• Sometimes interior seepage is due to internal issues (like a leaking shower drain or a neighbor’s bathroom overhead).
• Many sellers will paint over damp stains to hide them, so use a thermal gun or infrared thermometer on walls – a damp patch will usually be cooler than the rest of the wall, revealing hidden seepage.

Plumbing and Bathrooms: Plumbing fixes can be expensive if walls need breaking, so the more that is working well, the better. If the bathrooms are very old (decades), expect you might have to renovate them (waterproofing layer might be worn out).

• Test everything you can: flush the toilets, run the taps, check how quickly water goes down each drain. Turn on two taps at once to see if pressure drops drastically (indicates narrow pipes or low pressure).
• An adequate floor slope toward the drain is crucial in wet areas – otherwise you’ll have stagnant water and slippery floors.

Flooring: Walk every room and pay attention to the floor.

• Do some tiles sound hollow when you tap or walk on them? Hollow tiles are more prone to cracking if a heavy object drops on them (because the support beneath isn’t solid).
• Check the grout lines – are they intact and filled? Missing grout can allow water to seep in (especially in bathrooms or balconies). It’s common in older floors for grout to wear out and need re-filling. Not a huge deal, but a maintenance item.
• Has the polish worn out? This will add to the cost.

Terrace: If you are buying the top floor of a building or a standalone house, the terrace condition is important.

• Is the terrace floor properly waterproofed and sloped to a rainwater outlet? Ponding water on a terrace is the number one cause of roof leaks. Ideally, the terrace should have a slight slope leading to one or more drain points, so rain doesn’t accumulate.
• Also, what is the finishing on the terrace? A good practice nowadays is to have heat-reflective tiles on the terrace. This can reduce the heat that penetrates down into the top floor, making a significant difference in summer indoor temperatures.
• Also check the parapet walls and any penetration points (like around water tank pipes, antenna mounts) – are they sealed? A poorly sealed terrace can be fixed, but you need to know if you’ll have to do it.

After going through all this technical stuff, you might wonder: What about how the house looks? Aesthetics – the paint colors, the decor, the styling – are the easiest to change and also the most subjective.

Stack Rank Priorities

We’ve discussed a lot of factors – it’s natural to feel overwhelmed. How do you actually decide which house is “the one” when none will be perfect on all counts? One helpful method is to categorize all these factors into four buckets to clarify your priorities before you start making final decisions:

1. Deal Breakers: These are non-negotiable, irreversible factors that you absolutely cannot compromise on. If a property fails on any of these, you should walk away, no matter what other good features it has.
2. Constraints You Can Live With: These are important factors that are irreversible, but you could compromise on them if needed. Think of these as strong preferences on fixed factors. You’d really like to have them, but if a house is amazing in all other ways and just misses on one of these, you might still consider it.
3. Preferences: These are factors that you can change or improve later (reversible), but you would prefer not to compromise on them upfront because they matter a lot to you. In other words, even though these aspects could be fixed with time/money, you strongly prefer a house that already meets your standards here.
4. Good To Have: Finally, factors that are reversible and not critical – the true nice-to-haves. You are willing to compromise on these if other factors are great, because you could add or change these later, or live without them. These often include aesthetic things or minor features.

The power of this approach is that when the right property comes along that ticks your top boxes, you’ll recognize it and be able to act fast. In the competitive real estate market, being decisive is key. If you know “this house meets all my non-negotiables and the rest I can handle,” you can confidently give the token money immediately to lock the deal, rather than hesitating and losing it to another buyer.

Take some time with your family to write these four categories down. Everyone might have different priorities, so discuss and reach a consensus (especially deal-breakers). It brings clarity and peace to the process.

Is it a “Good Deal”?

After all this analysis, let’s talk money. How do you know if the house you’ve found is a good deal financially? In our view, a good deal on a house is defined by a combination of factors:

• The irreversible factors like locality, plot, basic Vastu/orientation, and structural soundness are all in line. This is where 60-80% the value is locked in.
• It fits (broadly) in your budget. “Good deal” doesn’t mean cheapest – it means value for money. The total cost (including an estimate of any immediate renovation you plan) should be something you can afford without stretching to a dangerous level. It’s okay if it’s at the upper end of your range if it’s great otherwise.
• You’re getting it for less than the cost of a comparable new construction. Why do we mention this? Buildings depreciate; land doesn’t. By choosing an older property with good fundamentals, you avoid overpaying for “new”. You can use the saving to customize interiors to your taste while still leaving money on the table. One way to cross-check this is to put your renovated house on the market and see if earns you more than what you’ve put in.

In summary, a good deal is when you feel confident that the price paid is fair (or better than fair) for the value you’re getting. You should feel that “I’m paying for the things that matter (land, location, build quality) and not overpaying for things that don’t (fancy but cheap fittings, hype, etc.).” It meets your primary needs and doesn’t break your bank.

Negotiating

How much you should negotiate depends on supply and demand:

But in each case remember, buying a house is a zero-sum game. Hence, whatever you do — act fast. To do this, have your financial arrangements in order (talk to your bank beforehand, have proof of funds or pre-approval ready if possible). When you decide on a house, be prepared to put down the token money (earnest money) immediately. This token is usually a small percentage (could be 1-5% of the price) paid as a show of intent while signing a basic agreement or memorandum of understanding. A fast token can psychologically “lock in” the seller because they know you’re committed.

Why speed and a strong offer matter: The process of finding and buying a house is exhausting. It can easily stretch over 1-3 years from start to finish (searching, negotiating, paperwork, moving, etc.). If you lose a good option by trying to save maybe 5% on the price, you might end up spending another 6 months looking, during which prices could even go up further! That not only erodes the 5% you hoped to save, but also costs you time, energy, and peace. There is also an opportunity cost – mentally, the longer you are in house-hunting mode, the more distracted you are from other aspects of life (work productivity, family time, etc., often take a hit when you’re consumed by real estate dealings).

One more negotiation tip: sometimes asking for inclusions or small concessions can work instead of pure price drop. For instance, you might say, “Okay, I’ll meet your price, but include the wooden wardrobes and the modular kitchen in the deal”

Legal Due Diligence

After putting the token down starts the legal due diligence. Property transactions in India involve significant paperwork and there are potential legal pitfalls if documentation isn’t in order. Here’s a checklist of questions and things to verify:

• Title Type – Freehold or Leasehold? Is the property freehold (meaning the owner has full ownership of the land and building with no time limit) or is it on a leasehold land (e.g., some properties are 99-year lease from the government or a housing authority)? Freehold is ideal as you can transfer/sell without needing permission from a superior lessor.
• Does the current owner have the entire chain of documents from the first allotment/sale of the property to each subsequent sale leading to them?
• Ask if the house is currently under any mortgage or loan (committed to a bank). If the owner has an outstanding home loan, the bank will likely have the original title deed as collateral.
• If it’s a relatively new building (or an apartment), ask if the building has received an Occupancy Certificate from the municipal authorities. An OC is issued after construction is completed and the building is inspected to be in compliance with the approved plans and livable.
• Confirm that the owner has paid all property taxes (and previous stamp duty) up to date.
• Terrace Rights / Roof Rights: If you are buying the terrace, ensure:
  • The sale deed explicitly includes that
  • Make sure the agreement states that other occupants can access the terrace only with your permission and solely for maintenance of common utilities — water tank and dish antenna
  • Any future construction is possible on the terrace — provided the municipality allows it.
• Parking Allotment: If the property comes with parking, how is it documented?

Additional things you (and your lawyer) should do independently:

• Measure the Property: It’s not uncommon for the actual built-up area or plot area to differ a bit from what’s on paper. Make sure you know what you’re paying for.
• Government Record Checks: Every state has a system to record land/property ownership. You should get a certified copy of the title documents from the sub-registrar’s office (to ensure the ones you saw are genuine and to see if any further deeds exist). Many places have online records now – e.g., in Delhi you can check some details via the MCD portal or DDA, etc., and in Maharashtra via the Mahavat portal for property cards, etc.
• Original Documents Verification: Ensure all the originals are in place.
• Permits and Past Approvals: Ask for a copy of the building plan approval from the city corporation and compare it with the existing structure. Many homes have some deviations (an extra room, an extra floor, covering a balcony, etc.). Minor deviations are usually regularized or tolerated, but major ones could be an issue (in extreme cases, authorities can issue demolition orders for illegal floors/extensions). If there was any extension or modification, was approval taken? Same for borewell (some cities require permission for a borewell). While enforcement is lax in many places, you should be aware of any irregularity you’re inheriting.

This legal due diligence might sound tedious, but it’s absolutely crucial. Do not skip it or take shortcuts.