Asking questions sets you on the right course to success in any endeavour. Everyone asks questions, but not many know the right questions to ask. Sometimes, other people get the questions right but do not find the right answers to these questions.
Before setting out in real estate, there are important questions to ask. These questions are not only for the newbies in the real estate business. As a practicing real estate investor, it is possible to get carried away by the motions that you fail to realize the need to pause to evaluate. This post will help you with questions you should ask and the right answers to these questions.
1. Are Real Estate Prices Negotiable?
Definitely! Almost every facet of real estate is negotiable. Before negotiating the price of real estate, you should conduct a market survey in your desired areas. This market survey would give you an idea of the prevalent market price and help you negotiate.
Before negotiating, it is important to note that real estate prices depend on several factors. For raw land, the price usually depends on the area and the level of development. Developed areas cost more than undeveloped areas.
It's a different ball game when dealing with residential and commercial properties. Aside from the location, factors like the structure and the facilities affect the property's price. Properties with state-of-the-art structures are more expensive than older buildings. Furthermore, the history behind the property could influence the price of such property.
Regardless of how old a property is, it would be more expensive if it is linked to historical facts and occurrences. Another factor that often affects the price is the demand for that particular property. Real estate is a limited resource. Hence, to meet up with increased demand, there would be a need to increase the price.
2. What is the First Step in Real Estate Investment?
The first step in real estate investment is to have a goal. Before investing your money, consider what you intend to get from real estate. Is real estate a short term investment? Are you in it for the long term?
How much profit do you intend to make from real estate? What area would you love to invest in? Would you prefer to get raw land or constructed properties? You need to answer these questions before venturing into real estate investment.
After answering these questions, you need to conduct thorough research. The research would help you shortlist areas that fit your requirement. In case you need a starting point, the beginner’s best guide to real estate investment is a worthy read.
3. How Much Do I Need for Down Payment?
There is no absolute response to the amount of money you need for a down payment. The down payment usually depends on factors like the seller and the total cost of the property. In some cases, the down payment of properties is usually calculated in percentages.
Currently, no law enforces the legal down payment for real estate owners. Due to this, several of them set the down payment at will. Some other property sellers would prefer to get the money in full before giving you access to the property.
If you intend to pay in bits, acquiring the land via a real estate company is best. Real estate companies often have payment packages that reduce the burdensome task of paying expensive fees at once. If you need a credible real estate company, do not hesitate to contact us at Land republic.
4. When is the Best Time to Buy a Home?
In Nigeria, you can always get land whenever you desire. However, you could hit a jackpot by staying updated with the news of happenings around you. Often, industrialization could play a major role in the prices of properties.
For example, if a new mega factory or airport is scheduled to be constructed in an area, such an area becomes more desirable to people. Consequently, that area's cost of living and property would begin to rise. Since more land cannot be manufactured in such areas, there would be a need to increase the price to meet the demand surge. Such is the case with properties around Ibeju-Lekki and Epe with the plans the government has begun to set in motion.
Sometimes, when people see this surge in demand, they think it is temporal. However, most times, such increases in prices are the beginning of an upward spiral in real estate prices in such a place.
5. How Do I confirm the Validity of a Realtor or Real Estate Company?
Confirming the validity of a property is as important as acquiring the land. These days, many scammers are on the loose to loot from unsuspecting people. Unfortunately, they appear so real and sound very convincing. In unfortunate situations, they even have receipts to back up their claims.
Before purchasing any property, ensure they have about 5 to 6 documents that attest to the seller's ownership of the land. Additionally, get a surveyor or real estate agent to check the real estate registry on your behalf. Usually, the real estate registry has a duplicate copy of land documents with them. It is always better to buy from real estate companies like Land Republic. We have social proof and have conducted business with individuals all over the world. Always check for reviews. If you do not know anyone that has purchased from a company, zero social media presence, with consistent, active engagement, then you might want to be really careful.
6. How Helpful are Real Estate Agents in Buying a Home?
Real estate agents play a significant role in making it easy for you to get a new home. Due to their large knowledge base, it is easier for them to link you to apartments that suit your taste and desires. Additionally, they can easily make suggestions that would be helpful if you are finding it difficult to paint the perfect picture. In simple terms, real estate agents take off the stress usually attached to getting a new apartment.
7. Can I Back Out of a Real Estate Investment Deal?
Definitely, even though you can back out of a real estate deal, you may be unable to get all your money back. This is mostly true if you have made significant progress in procuring the property. For example, if you are buying raw land, it would be difficult to get back money invested in drafting the survey plan. Additionally, once the agreement document is created, you can't 'uncreate' it. Consequently, such documents go to waste, and so does the money used in creating them. Due to factors like this and other hidden expenses, pulling out is not advisable unless it is essential.
The Nigerian real estate law could be helpful while you make your decisions.
8. How Can I Confirm the Validity of a Land Before Purchasing It?
There are several ways to investigate the validity of land ownership. While some people believe that paying a visit to the property is enough to guarantee, this might not be so. Some scammers sometimes take people to random lands just to waste their time. This is where thorough investigation comes to play.
One of the basic investigative methods is word of mouth and questioning. Ask about how the seller got the land, and also do your research in the area the land is located. Furthermore, request to see the land documents. Some essential documents you should see are the land receipt, certificate of occupancy, deed of assignment and the grant of probate. In some cases, the deed of assignment is usually replaced by the deed of conveyance. Both documents serve the same purpose, but they have different names.
9. Can I Invest in Real Estate with 100 Thousand Naira?
Absolutely. You may be unable to buy raw land or building with that amount. However, real estate has evolved drastically. Real estate strategies like crowdfunding, syndication and investment trust funds allow you to co-own a property with other investors. There are also investment plans that allow installment payment over a period of time. Just ensure you research the company or individual well before you make a deposit. A very good example of this kind of investment is Land republic's Premier City in Ibadan which allows you pay an initial deposit of 100 thousand naira.
If you are knowledgeable about the real estate sector, you may not even need that much to start investing in real estate. In such cases, you would use your knowledge to trade in place of money. Our article on the best real estate investment strategies covers the basics of these strategies.
10. Is it Safe to Buy Land in Undeveloped Areas?
This is usually a recurring question among people just starting in real estate. If you are investing long-term, this is a smart move. However, you need to do your due diligence and conduct proper checks. One such check is the proximity of the property to major landmarks.
Even if a property is undeveloped, its proximity to landmarks might be a payoff over time. More land doesn’t get manufactured. Consequently, the land in the immediate environment of major landmarks would get sold out. When this happens, the demand for lands in the next vicinity rises.
While you await the appreciation of lands in undeveloped areas, you should maintain the land as consistently as possible. Clear the bushes and establish clear boundaries around them to prevent intrusion by unwanted parties.
Conclusion
Asking the right questions is essential when getting started with real estate. Unfortunately, asking the right questions does not guarantee that you will get answers to these questions. This write-up covers the essential questions you should ask when getting involved in real estate in Nigeria. Additionally, it covers the answers to these questions as well. If you ever need to talk to somebody about your real estate needs, do not hesitate to contact us immediately.
