Real estate in Nigeria is one of the most unpredictable industries and that element of uncertainty can make it either exciting or nerve wrecking. Just like with everything in life things can and will go wrong, and the same applies to real estate. Learning from failures can make you avoid making that sort of mistake in the future. When it comes to the Nigerian Real estate industry, there is no such thing as mundane, and every transaction is different. Not all real estate sales go as smoothly as the participants will like. A real estate sale is one of the most rewarding transactions primarily because of the financial rewards that come with it. A sale can only be called that if the transaction has been concluded. Here are a few things that could hinder the success of a real estate transaction in Nigeria.
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Contents
1. Inflexibility
A factor that can impede a real estate transaction is the seller’s inflexibility. Sellers often have a non-realistic expectation regarding the sale price of the property. A lot of sellers in Nigeria refuse to listen to professional counsel and determine the selling price all by themselves. Some real estate agent usually assumes that when the seller sees the range of offers the property is getting, they will change their mind If this assumption to ask real estate agents to advertise their property for sale or development without making proves wrong, it will result in wasted effort and lost sales.
2. Indecision
Indecision is a major issue in any business transaction. Some people are not even sure if there are willing to sell or buy a property. There are sellers who haven’t their mind to really sell and there are also buyers who just make realtors show them endless properties without committing to one. They can take all the time in the world to make up their mind at the expense of the real estate agents spending time and money on their brief.
3. Documents
A real estate transaction requires a lot of paperwork and any little hiccup with the paperwork can sabotage the deal. Some agent even begins to market a property without really checking the title related to the property. It sometimes might get to the 11th hour before the buyer realises there are issues with the paperwork. Agents should get as many details regarding the title to the property before it is placed on the market.
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4. Outside the control of the principal parties
Sometimes the factors that might hinder a real estate sale in Nigeria might be outside the control of all the principal parties to the transaction. For example, a land transaction has already been concluded and just a few days later the government acquired the land due to a major road construction project that would literally affect more than half of the land. The event was sudden and unexpected, but it’ll affect the transaction significantly.
5. Finance
Challenge with finance can be a serious issue when it comes to the sale of a property. It is always a good strategy to find out ahead how far a buyer is willing to go and how ready they are before you commence a full-scale property search. If the buyer bases his or her intended purchase on a loan from a bank or proceeds from another sale, you need to be wary. It is important that the buyer should have direct access to ready funds that can be used to purchase the property on short notice.
6. Unknown issues with the property
Nothing causes a buyer to back out of a deal than a home inspection that turns up issues with the house. If you are listing your home, avoid this massive headache entirely by getting a pre-inspection, and hire a reputable and insured contractor to fix things for you.
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7. Buyers/Sellers remorse
This is quite uncommon but it is something that happens. The seller or buyer might have last minute regrets about a property and tries to cancel the contract, sometimes as late as the day of closing.
