How to Research a Property Before Buying with Records, Ownership and Sales History

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Rising house prices, tight markets and fierce competition have made purchasing a house an even bigger commitment than it ever has been. Under these conditions, buyers are put under enormous pressure, as any nasty surprises can push them over budget or leave them saddled with complicated technical fiascos that require professional help to untangle.

Thankfully, buyers today have access to all kinds of property data that goes well beyond curb appeal and inconsistent listing specs. Knowing how to research a house before buying enhances your ability to make informed decisions, but in high-turnover markets like metropolitan cities and developing boroughs, finding that information can take time and may lead you to miss prime opportunities. Let's explore what data to look for and where to find it, before you commit to buying a property.

Property records and ownership history

These should be your first port of call when investigating real estate. These documents can reveal:

  • Who owns the property now, in case you want to get in touch and ask questions directly instead of via an agent
  • Previous transfers, giving you a reference of how much the property was worth and when
  • Current assessed value, so you know a good deal when you see it and can compare with neighbourhood averages
  • Lot size and zoning classifications can help you foresee any development or expansion roadblocks in the area
  • Tax history, showing whether or not you can afford the property in the long term, and how regularly surveyors assess the area

Local county and municipality bodies often compile this information, and unless they've been dramatically underfunded and understaffed since the turn of the millennium, it will be available digitally.

For speed and convenience, platforms like PropertyShark consolidate all of this historical property data into an easily searchable database, giving you the information you need to determine when a prospect is promising on paper.

Dive deep into sales history

Once you've found somewhere that checks enough of your boxes, it's time to put on your auditor cap. A property being fairly valued, regularly maintained and, above all else, comfortably livable can all be discerned from the past trading of hands.

Some key patterns to watch out for include:

A high frequency of sales

Sometimes, quick turnovers can result from personal circumstances. Somebody buys a home, then they're offered a great job in another state or have family responsibilities that make the new place unsuitable. Often, however, a bunch of sales in close succession can suggest the property is valued primarily as a speculative asset, or a "flip" home, rather than as a permanent long-term residence. It might also indicate a hidden issue that owners would rather be rid of than invest the time and money required to remedy the situation.

Price jumps

Price jumps can be a result of market conditions, but they can also stem from cosmetic renovations that sellers drastically overvalue. Compare current prices against past sales and neighbourhood averages to gauge how accurately the asking price reflects the value.

Price discrepancies

If a property has been listed, taken down, relisted, or sold below the asking price, it might indicate unrealistic seller expectations or structural issues like failed inspections. From here you can either ignore the property, or use the information to begin negotiating on price.

Digital research tools like Zillow let buyers compare pricing trends and transaction timelines. A broader view of a property's sales history gives you a better idea of its long-term value and risks.

Looking beyond listings

What you see on a property listing is only the tip of the iceberg. Finding its true value requires digging into the records, ownership and sales history that put homes in a greater context.

Whether you're looking at property as a financial investment or hoping to lay down roots, timely access to this information lets you make informed decisions and secure the best deal. Due diligence ensures you pay what the property is worth and avoid unforeseen issues later. These research skills and resources benefit you in the long term.