When a potential buyer thinks about purchasing real estate, the primary focus is usually the price and the size of the house and the location and character of the neighborhood. When a seller puts his property on the market, his primary focus is the amount of proceeds he will derive from the sale that he will be able to put toward the purchase of another parcel of property. While those concerns are important, other points should be considered as well.

Neighborhood and taxes

Once the buyer has found a dream house, the buyer will want to investigate the character of the neighborhood. An investigation should include the proximity of the house to schools and shopping, the availability of public transportation and medical services, and the existence of easements or planned developments that would have property tax implications or otherwise affect the character of the neighborhood. The municipality may have special tax assessments that have already been levied or are still in the planning stages. Such special assessments can be for such projects as street development and repairs, curbs and gutters, sewer development and repairs, and water mains, among others. Additionally, special taxing districts may have assessed taxes for projects such as mosquito abatement. All of these factors will give buyers an indication of whether the dream house is worth the asking price and whether its value will increase as the years pass.

Condominium

If the dream house happens to be a condominium, buyers should investigate the stability of the condominium association. This can be done by checking into whether there are scheduled repairs, whether there are sufficient funds held in reserve to cover the scheduled repairs, and whether the scheduled repairs meet reasonably anticipated obsolescence. In other words, buyers should check to see if the roofs are in good repair, when the next repairs are scheduled, and whether the association has assessed enough in dues to pay for the repair of damaged roofs and the future cost of replacing when they wear out. Financial records are available from the association as well as copies of their rules and bylaws. Inspection of the rules and bylaws would indicate whether there are peculiarities in the association's management and rule-enforcement style that would make living in the condo more of a nightmare than a dream.

Physical condition

In some cases, a contract to buy a home may be conditioned upon a satisfactory home inspection. Because of the option, buyers should investigate the physical condition of the dream house or condo. Although the untrained eye can easily detect some flaws and defects, a professional home inspector can provide assistance in determining whether there are building code violations or pest infestation that would affect whether immediate expenditures would be necessary for repairs or whether the home is worth purchasing.

Size matters

If buyers are looking for a lakefront cottage to enjoy the water, the purchase of a cottage that sits back a bit from the lakefront may be a disappointment if it turns out that the property between the cottage and the lake is not included in the deed. Most states only require that the sales contract include a general description of the property. Sometimes only a street address is required by law; however, such a description would not necessarily put buyers on notice that the front strip of land is not included in the contract. Typically, property is identified by a legal description. If a legal description is not provided on the property listing, buyers should condition an offer to purchase on a proper legal description that includes all of the property that they are offering to purchase and a survey, showing the exact location and boundaries of the property

Taking title

Buyers can take title in several different forms, each of which create different estates or interests in the land. A tenancy by the entireties can only be held by married persons. Other estates, such as joint tenancy with the right of survivorship and tenancy in common, can be held by married persons or unmarried persons. Title can also be taken in a land trust by naming a trustee, who holds title in the name of the beneficiaries. Beneficiaries can be the buyers or anyone else who is qualified under state laws. Buyers should investigate which form of title will fit their particular needs.

Copyright 2007 LexisNexis, a division of Reed Elsevier Inc.