Buying a home is a very good idea. Not only will it relieve you of the hefty amounts that landlords charge as rent, but there is something about owning your own home that gives you a feeling of security.
Unfortunately, when it comes to buying a house, especially in a place like Lagos state, you will often see people paying far more than the house is worth. For example, it is very possible for someone to pay 30 million naira for a house that is only worth 20 million.
To avoid this, there are some steps that you must take to protect yourself. From working with a real estate agent to comparing house prices, the steps will be explained in detail below:
- RESEARCH AND MAKE A BUDGET
Your budgeting process begins with research. Cast your research net as wide as possible- Island, Mainland, urban, sub-urban- search by home type and find the average price across different locations. This will help you determine how much you’re willing to offer for your future home.
Get your information from as many credible online and offline sources as possible. The more knowledgeable you are, the better your bargaining position when you go into your home negotiations.
- HIRING A REAL ESTATE AGENT IS AN EXCELLENT IDEA
A lot of people know that real estate agents are efficient when you need to sell off a property. Unfortunately, a lesser amount of people know it is even better to buy property with the help of a real estate agent, and it is also a very smart thing to do.
Think of it, who else knows more about houses than the person who makes a living from buying and selling them? Nobody, that’s the answer. Due to their wealth of experience, real estate agents are invaluable when you are trying not to get cheated.
If you’re lucky, you may get a real estate agent that also doubles as a property surveyor. This means that he can assess the value of the house and advise you whether it is worth the price or not.
Let’s take, for example, the seller lists his house for 40 million naira. After an assessment, the agent may put the house’s real worth at just 25 million. You just escaped overpaying by 15 million. Sounds nice, right?
- DON’T SHOW THE SELLER ALL YOUR CARDS
The hard truth is that once the seller sees that you are really in love with the house, there is a very high tendency that he will increase the price of the house. This is because he knows that you will have a hard time fighting off the temptation to hand over the money just to get your hands on that lovely house you have fallen head over heels in love with it.
The solution? Don’t be in a hurry to show the seller how much you love the house. This means that even if your heart is doing cartwheels inside your chest, you should keep your face impassive and maybe try inject a hint of disinterest into your tone
If the seller doesn’t sense any form of excitement or eagerness from you, there is a high chance that he or she will scramble to make the house more appealing to you. One method that he may employ is giving you a discount on the house, especially if the house has been on the market for a long time.
Also, if the seller senses that you are desperate or in a hurry to just buy any house (even if it isn’t something you really like), he will probably take advantage of this fact to try to make you overpay for the property. He is after all, out to make a profit. In this case, you should keep your cards to yourself and put on your poker face.
- A LITTLE COMPARISON CAN’T HURT
Remember the research we talked about above? Well, here’s a little expatiation. When you are hunting for a house, it is a grievous mistake to just get the quotation of the seller and then attempt to negotiate. This is like going into a war unarmed.
So what is the ammunition you need? That’s simple. You need to get an average cost of the house based on its location. This means that if you want to negotiate about a duplex in ABC estate, you should get the prices of other similar duplexes in that estate.
Comparing home prices from different locations is probably not be a good idea because prices differ from location to location.
- Do your research.
- Find yourself a competent real estate agent.
- Play it cool during negotiations. The more desperate you come off, the more
you will pay.
- Match the seller’s price with a well-informed counter offer.
Knowledge is power in real estate negotiations. What you don’t know will hurt you.