28 Mar 5 Things Every First-Time Homebuyer Should Know Before Buying a House in Lagos
The life of a realtor is a conflicted one. As salespeople, the realtor makes money from closing deals, therefore he/she wants to do everything possible to close those deals. Unfortunately, this can include not telling the first-time homebuyer some very crucial details.
For instance, an agent earns more money from selling a house at a higher price. Yet, a client’s best interest lies in buying the property at a lesser price. This will always conflict with an agent’s financial incentives because the agent makes more money when the buyer buys for a higher price.
There are at least 5 key elements that you should know before committing your money to buy a property. In this article, we will unfold all of them for you one at a time.
Big houses = more expenses
When buying a home, you should make sure it is sizeable enough so that you (and your family) can be comfortable. On the flip side, the bigger the house you own, the more headaches and expenses you will have. It is important to be sure that you can maintain a large property in the long run before you make the move to own it.
Therefore, one key question you should be asking yourself before buying a house is “Do we need this much space?”. Whether it is a two-bedroom, salt-box house or a 6,000-square-foot, five-bedroom home, you should know that a big house will be equivalent to big expenses in the future.
A “great deal” doesn’t mean a “great house”
The better a home is, the less bargaining power you have as a buyer. This is because good properties cost good money. However, the price may be above what the buyer considers a ‘great deal” and may cause him/her to reject the good house in favour of a lesser-priced one.
Sadly, many buyers pass up on the perfect property because they cannot get the discount they were hoping for, and wind up buying a house that is of severely low quality instead.
Can the property maintain or increase its value in the long run?
This is a very important question to ask before buying a real estate property, especially if you have plans of reselling at a later date. Factors like tasteful finishing, availability of a professional facility manager and a good location can help you to predict if the value of the property will keep going up or down.
Is Renting better than buying a house?
Before paying for a house, it is important to carefully consider whether renting is a more viable option or not. Factors such as your purchasing power, the pride of owning your own house and your ability to make long-term commitments to a particular location can help you determine the best answer to the question of renting vs buying.
Can I get a mortgage?
Buying a house in Lagos, or any other state is a huge capital investment. Getting a mortgage can lessen the financial burden on you and therefore is a good option to explore. 3 of the more popular mortgage types are Fixed-rate/traditional mortgage, Adjusted-rate mortgage (ARM) and Interest-only mortgage. A trustworthy homeownership solution that provides access to a guaranteed mortgage of up to ₦50million in Nigeria is Green Park Homes.