CategoriesUncategorized

Red Flags in Real Estate Transactions

Real estate has its own fair share of red flags, they are warning signs that guide you from losing huge sum of money to real estate fraudulent transactions. Aside from knowing what to watch out for, it is equally important that you do your due diligence to avoid falling victim to real estate scams.
Avoiding Legal checks – Real estate transactions are legally binding, therefore the service of a lawyer are required. When a real estate agent insists on not including legal documents in the transactions, that is a red flag. Most times such real estate agents are smooth talkers and often persuasive, you have to be careful not to become a victim of their fraudulent propositions.
Impatience – This is the #1 red flag, when a real estate agent seems impatient to close a transaction. It is important to take your time to re-evaluate the transaction; to be sure that it is not a fraudulent deal. If it is not a dubious real estate transaction, then you don’t have to rush to make payment.
Evidence of Payment – It is important to have evidence of payment for every transaction you engage in, especially real estate transactions. The evidence of payment can be receipt or other documents that clearly identifies you as the bonafide and legal owner of the property. The receipt must indicate the following information – Confirmation of payment, Date of payment, Amount Paid and Name of the receiver. When the real estate agent closes a deal without giving you an evidence of payment that is a red flag.
Incoherent Figures – Another red flag is when the figures don’t add up, particularly when it sounds too good to be true. This is not the time to be excited over the ridiculously cheap price of a property, rather you need to take a step back and reevaluate the figures. Also beware of exaggerated claims; instead do a market survey to know the price range of the properties you want to buy.
Inspection – Amongst all the processes involved in securing a property, inspection is one of the most crucial step. Most fraudulent real agents always avoid this part of the transaction, by delaying, postponing and even denying you of the opportunity to see the property you want purchase or rent. Before closing any real estate transactions, ensure that the agents can be verified and do thorough investigation about the companies they are working for.
Mode of Payment: It is important to avoid cash payment such that the history of the transaction can be traced. Spreading of payments can also help detecting fraud and reducing risk.
Scope of Repair: Always agree and document repair scope and responsibilities. This is important because often times you might think you have a good deal by paying low but the cost of repairs can make the effective rent or purchase price grossly higher than the open market rent or value.
Timing of Inspection: it is best to inspect during rainy season otherwise you might unknowingly pay for property prone to flood and dampness

CategoriesConstruction Marketing Real Estate

How to Determine the Market Value of your Property

The real estate market in Nigeria is dynamic, as a result the value of properties are constantly changing. Knowing what your property is worth especially when you are trying to buy or sell. The market value of your property is what buyers are willing to pay for it. There is nothing worse than selling way below value and losing money. Below are some factors to consider in determining the value of your property –
Location – Location is key in the demand for homes and it can considerably affect the value of properties in these areas and how much they are purchased.
Physical Characteristics: The size, shape and topography of the property are factors equally important in estimating market value of properties. This have great effect on the use to which it can be put and also impact the eventual cost of development. The more appealing these factors, the higher the value of properties.
Availability of Infrastructure – Properties in locations with essential amenities such as reliable power supply, drainage systems, good roads and more are bound to attract the attention of buyers which will invariably increase the price of the houses compared to underdeveloped areas.
Market Knowledge – Surveying the market will further help to determine the worth of your property. Current listings of similar properties can give you an idea of the real estate price estimate in your area. Also check out recently sold houses in your area, especially if the properties were purchased at impressive prices over the past six months.
Nature of Title – The type of title to properties can determine their worth. Properties with registered titles are likeky to command higher values that those with unregistered titles or just survey plans. The reasons for this are that parties would have to factor in cost of perfecting the title aside from the fact that athose with registered titles are better secured and bankable.
Nature of Interest: Interest in properties can be leasehold, freehold, licence, easement and many more. All these interests have varying degrees of relevance. The nature of interest therefore determines the tenure and certainly the value.
Condition of Property: The stste of repairs of properties have significant impact on value. The lower the cost of repairs, the higher the value and vice versa.
Use of Property: The use of property can be Residential, Commercial, Industrial or Recreational. All these uses have a way of impacting on the value.