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These are some useful tips for those who likes to purchase domain for like reselling or content development.

Check the Domain Age- (if renewal or transfer)- Use the wayback machine to check what’s the domain age in case of transfers and renewals. And always remember, the older the better.
Check for possible penalizations - Google maximum information on penalizations. Google with the domain name and check until the 100th page. If there are any penalization issue the owner might have posted in some forums/discussion boards asking for help.
Check for offensive content- Check on the cache if there has been usage of offensive content on the website like porn or racism. Again Wayback machine is the best method to check it.
Check for IP shared usage- Check the IP of the domain and the other domains on the same ip. Sometimes because of offensive content on other websites on the same ip range, the new domain could have the chances of getting banned from Google.

Check for linking patterns- Check the backlinks on /Google/Yahoo, if you find any particular pattern in linking, then it’s adviced to get more information on it from the seller. Because peculiar linking patterns like incoming links from the same sphere of domain/category means unnatural linking. Nothing quite harmful here, but always good to watch out.

Check for bad neighborhoods- Good reason to check for if you are at risk. Bad neighborhood means getting incoming inks from porn/poker/objectionable content websites.

These are very simple ones but may prove worthy to loook into.