Selling a property can be a pretty difficult task, especially here in Nigeria, where the real estate market is both important and complex. So, whether you are selling your home, a piece of land, or commercial property, you should avoid some common mistakes that could delay the sale, reduce the value of your property, or even cost you the entire deal.
In this blog post, weāll be exploring some of the common mistakes people make when selling property in Nigeria and how to avoid them.
1. Setting an Unrealistic Price
One of the most common mistakes property sellers make is setting an unrealistic price. While you would want to get the best possible return on your investment, overpricing your property can scare away your potential buyers. Nigeria has a competitive real estate market, so buyers are always well-informed and they probably already consulted different sources before making a purchase. Overpriced properties tend to sit on the market for a long time, which can make them less attractive to buyers.
To avoid this, you have to conduct thorough research on similar properties in your area. Consider factors such as location, property size, condition, and current market prices. You may also want to seek the expertise of a real estate agent to provide a more accurate valuation of your property.
2. Poor Marketing Strategy
In todayās digital world, you need a strong marketing strategy while selling property. Many sellers in Nigeria still rely on the traditional methods like spoken words or newspaper ads. While these methods can be effective, they limit the number of potential buyers who might see your property.
A poor marketing strategy may results in fewer inquiries and longer listing times. To maximize your chances of selling, you should take advantage of online platforms such as property listing websites, social media, and even email marketing. Use high-quality pictures and detailed descriptions, can also help make your property stand out.
3. Neglecting Property Maintenance
Another common mistake people make is neglecting the maintenance of the property before putting it up for sale. A poorly maintained property can reduce its market value and in turn, lose potential buyers. Issues like peeling paint, broken fixtures, or unkempt surroundings can give buyers the impression that the property has been neglected, and this makes it less appealing to buyers.
Before listing your property, make sure you take the time to carry out necessary repairs and improvements. Paint your house, conduct maintenance and ensure that there is functional plumbing and electrical systems in the house. This can make a difference in the overall appeal of your property.
4. Ignoring Legal Documentation
In Nigeria, property transactions are heavily regulated, and proper documentation is necessary. Many sellers make the mistake of not having all the necessary legal documents in place before listing their property. This can cause delays in the sale process or, in some cases, lead to the deal falling through.
Common legal documents required when selling property in Nigeria include the Certificate of Occupancy (C of O), deed of assignment, survey plan, and building approval (for developed properties). Make sure that all these documents are up-to-date and in order before you begin the selling process. It is also advisable to work with a reputable real estate lawyer to handle the legal aspects of the transaction.
5. Overlooking the Importance of a Real Estate Agent
Many property sellers in Nigeria try to cut costs by avoiding real estate agents. While this might save you on commission fees, it can be a costly mistake in the long run. Real estate agents have a deep understanding of the market, access to a broad network of buyers, and the skills to negotiate the best deals.
Without a real estate agent, you may find it challenging to price your property correctly, market it effectively, and navigate the legal complexities involved in property transactions. A good real estate agent can provide valuable advice, handle negotiations, and ensure that the sale process goes smoothly.
6. Failing to Screen Potential Buyers
Not all buyers are serious, and failing to screen potential buyers can lead to wasted time and resources. In Nigeria, itās not uncommon for people to express interest in a property without having the financial capacity or genuine intention to buy. Some might even attempt to negotiate a deal without any real commitment.
To avoid this, always ask your buyers for proof of funds or a mortgage pre-approval before engaging in any detailed negotiations. This will help you filter out non-serious buyers and focus on those who are more likely to complete the transaction.
7. Underestimating Transaction Costs
Many sellers in Nigeria focus solely on the selling price and forget to account for the costs associated with the transaction. These costs can include legal fees, agency commissions, taxes, and other miscellaneous expenses. If you fail to factor in these costs, it can result in a lower-than-expected profit from the sale.
Before listing your property, make sure you have a clear understanding of all the costs involved in the transaction. This will help you set a realistic selling price and ensure that you achieve your financial goals.
8. Emotional Attachment to the Property
Selling a property that has sentimental value to you can be emotionally difficult , and itās easy to let emotions cloud your judgment. Some sellers overvalue their property because of personal attachments, while others may reject reasonable offers because they are not ready to let go.
Itās important to approach the sale of your property with a clear mind and a focus on your financial objectives. Seek the advice of a real estate professional to help you navigate the emotional aspects of the sale and make decisions based on facts and market realities.
Conclusion
If youāre willing to sell your property in Nigeria, it can be a rewarding experience if you do it correctly. So, by avoiding these common mistakes, you can increase your chances of a more successful sale and achieve the best possible outcome, and with the right approach, you can navigate the complexities of the Nigerian real estate market and sell your property very easily.