by Olufemi Oyedele

Created on: March 01, 2009   Last Updated: March 21, 2009

Buying a house is a lifetime ambition that you do not do oftentimes. It is an exercise that a buyer needs to do with a chunk of his or her lifetime savings and or including loans from third parties because a house is the greatest individual asset an individual, group or organisation can have. A house is a bundle of joy. It definitely adds to the status of the buyer in the society. It is an economic investment and serves as security for facilities. It is necessary that you know the following five things before buying a house if you are aware that it is the sellers' market, "caveat emptor":

Asking price

You will need to know the asking price of the property. Asking price is the amount that the owner of the house or the vendor is asking for. Ask whoever is in charge of selling the house if the sale price is inclusive or exclusive. Inclusive means it contains professional fees like agency fees and legal fees. You will also need to know the property tax payable by you on the property and the necessary repairs that must be done before the property will be habitable or tenantable. Check the electricity bills to see if there are liabilities incured by the last occupiers. Ask the local council if you will incur any liabilities from them for purchasing this property. You will also need to know the price of recent sales of similar house/s and the "rent passing" to decide on the offer price of the house. Also, you need to know if buying the house is necessary and where to get money to pay for it. Consider your long time commitment to educating your children, going for holidays with your wife and so on.

History of the house

Ask the vendor for the documents of the house to enable you check the year of construction and the original design of the house. Check if there has been alteration or conversion. Ask the local authorities if the alterations and conversions noticed by you are legal or if they will attract penalties. Check round the house for any structural failure or sign of leakage on the roof. Ask questions about leaking roof and when last repairs were done. You will also need to know those people that lived in the house in the past and if they were owners or tenants. Check the materials used for the construction of the house and if they are easily available for repairs. Location of the house and Market situation of the area.

Location and Market trend of the house

A house can serve as security when procuring loans. You will need to know the market trend of the house you are

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