Is the Price Reasonable? - Is the property priced right for the market? Many unwary buyers spend more than necessary for their home. This can be avoided by simply conducting a market analysis. Accessing records of similar real estate transactions is easy. If working with a buyer's agent, they can provide this information for you. If the home is priced too high, submit a bid for a reasonable amount.

Does the Property Need Improvement? - Fixer-uppers can be great buys. Buyers can usually acquire the property at a discount, and make improvements according to personal taste. If the home needs several upgrades or improvements, the asking price is typically favorable. For this matter, many sellers make improvements beforehand because this justifies a higher asking price. But pass on fixer-uppers priced too high. Aside from paying more for the home, you will have to spend thousands of additional dollars in upgrades.

Future Zoning Plans - Sometimes, homeowners are eager to sell their properties if future city plans consist of a new roadway or low income housing in the vicinity. Before purchasing a property, potential buyers should research possible city plans for the area.

Is the Property a Foreclosure or Bank Owned? - Even though the chances of locating a foreclosed or bank owned property for pennies on the dollar are slim, you may be able to receive a noticeable discount in buying these types of properties. If the property is in good condition, and sold below market value, buyers may be able to purchase the home and have instant equity. On the other hand, if the property is damaged and needs extensive repairs, the buyer must carefully weigh the costs.