As a real estate Broker, I get asked several questions from clients wanting to invest.I am going to go through some of the frequently asked questions ( FAQs) in real estate with you.
Is now a good time to buy or sell?
When it comes to real estate investing, the reality is no one has a crystal ball. We only know what the right time was to buy or sell by looking at history, hindsight being 20/20. The answer to this question is “Yes” all you have to do is find a house or property you love that make sense, that you would own for a long time, it’s in a good location and in a decent shape, lock in a long-term mortgage and sleep well/
How is the housing market now in my area?
In Abuja, there is a huge demand for affordable housing opportunities. In defiance of global economic changes or meltdown, the property market in Abuja continually witnesses a sharp increase in prices. For example, houses that are being sold for 100 million naira in Maitama or Asokoro districts this year, will witness an increment of about 25% next year. This is because the Nigerian economy, in general, does not depend entirely on banking.
What are the steps involved in selling my house?
Selling your house is a big task and your house is likely your biggest asset. The key steps to selling your house are first you assess the condition of your house, secondly, you get a price for it, thirdly, you list it and market it, fourthly, you negotiate and accept an offer, Lastly, you prepare paper works and close the transaction
How do you determine how much my home is worth?
An accurate appraisal of a home’s worth can make or save you tens of thousands of Nairs on a prospective deal. Determining how much a house is worth begins with an assessment of the prevailing domestic economy as it relates to local real estate prices. You must learn to monitor the price action of the comparable real estate, or comps, which are groups of homes in your neighborhood with similar qualities.
What price can I expect to get in the current market?
Real estate prices in a current market situation are determined by the market price and the market value. The Market price is what a willing, ready and bank-qualified buyer will pay for a property and what the seller will accept for it. While the Market value is an opinion of what a property would sell for in a competitive market based on the features and benefits of that property (the value), the overall real estate market, supply and demand, and what other similar properties have sold for in the same condition. The major difference between market value and market price is that the market value, in the eyes of the seller, might be much more than what a buyer will pay for the property or it’s true market price. Value can create demand, which can influence price. But, without the demand function, value alone cannot influence price. As supply increases and demand decreases, price goes down, and value is not influential. As supply decreases and demand increases, the price will rise, and value will influence price. Market value and market price can be equal in a balanced market.
Does choosing the right agent really make a difference?
Choosing the right agent can make a difference in how quickly and efficiently you can find or sell your house, the price you pay or receive and the smooth completion of the transaction. Finding the right pays off in the long run. You should go for a professional real estate agent who has experience. then you can also get referrals from friends, neighbors and co-workers. Interviewing a few real estate agents will also help.
At the time of writing, Joy Gundu, is a Real Estate Broker and CEO at Castle Homesng in Abuja, Nigeria.