Research the housing market in the target area. Once you have information about the general area, focus on the particular property and seller. Look for answers to questions such as:
1. Why is the homeowner selling? (If they're moving because they find the area undesirable, you might want to consider this issue.)
2. How long has the home been on the market? (If it has been on the market for a long time, perhaps there are negative facts about the property that you need to know.)
3. How much did the seller pay for the home compared to the current asking price? (If the seller paid more, find out why. Was it a general real estate trend, or did property values in that particular neighborhood go down?)
4. What is the seller's time frame for selling and moving? Does it fit within your needs?
5. Are there any defects in the home or problems with the surrounding neighborhood? (For example, does the roof leak? Is there a new construction project in the area that will lead to major traffic congestion?)