10 Weirdest Myths About Real Estate In Nigeria

Ever tried to purchase a product in an industry and all you get are bad reviews that eventually lead to cold feet? Yup. There’s always that one person who just always has something bad to say about a service, product or even another person and doesn’t fail to spread the gist like wild fire during Harmattan.

Well, I’m here to correct some of those impressions so you don’t waltz into the industry either as a buyer, seller or realtor armed with knowledge that only makes you look like the Emperor with ‘magic’ clothes on.

1. REAL ESTATE = QUICK MONEY

False. This is not MMM, please. On the outside, it often looks like real estate is the perfect business for earning some quick bucks. I mean, sell property, get a huge commission and become a Rolls Royce owner overnight, right? Biggest myth ever! The profession is not all easy peasy lemon squeezy – Nothing about it is as glamorous as it sounds. It is tough and demands as much time and energy as any other profession, if not more. Add to it, the extra expenses incurred in the form of marketing events, showing plots around, the commission of the agents and many more. It is not as charming as it looks.


2. HIGH PRICE, HIGHER
 GAIN


False. As a seller/developer, if you are not up to par with the current prices of the homes in that area on the market, you might end up having your home sit still for quite a while without serious clients until you end up selling it for peanuts. It is also tempting to go down this path especially when you have multiple clients gunning for the same property. Do not do it as it may eventually backfire and chase willing buyers away. Making an effort to price your property reasonably doesn’t mean you are not going to get a good ROI on your propert
y. Just don’t let that subtlety of greed, rule. Speaking of serious clients…


3. WHEN BUYING PROPERTY, HAGGLE LIKE A MARKETWOMAN

False. House, not tomatoes and peppers, plis dears. If I do say so myself, it is very unfair to make an offer at a very low price when buying property. As it is today, prices are mostly non-negotiable but even if they are negotiable, making an oddly low offer can make you look like an unserious buyer who’s just looking for how to relieve boredom.


4. ASSUMING THE REALTOR’S COMMISSION

Do not do this. There is no such thing as a ‘standard commission’. It depends on the brokerage firm and varies from agent to agent. Also, the agent doesn’t get to keep the entire commission. The amount is split by a formula between the brokerage and the agent. Other expenses incurred during the process are also sometimes settled.


5. REALTORS SELL THEIR OWN HOMES AT BETTER RATES

False! The selling price of a property does not depend on who owns that piece of property. So, whether the owner is a real estate agent or an advocate, the worth of the house is determined by its vicinity, structure and architecture – definitely not the profession of the owner. It doesn’t mean that if an agent has put up a real estate sign he’s in for a huge profit.


6. DESPERATE SELLERS WILL KEEP SLASHING PRICES

False. If a house for sale undergoes multiple price reductions, that doesn’t mean the seller is desperate to get rid of the house. Price reductions are just a way to bring the house on par with its competitors. Many at times, overpricing and underpricing are both marketing strategies. The former is done to negotiate later and the latter, to generate traffic and interest. So, don’t be afraid to ‘shoot your shot’.


7. GOING “FSBO” ON YOUR HOME HELPS SAVE ‘LOTS OF MONEY’


False, please. Well, I still can’t believe that sellers still do this
. I mean, you can as well tell me you saw a unicorn strolling about on the streets of Lagos. However, it doesn’t change the fact that it is one of the commonest real estate myths. Many sellers who attempt to sell their home FSBO believe that selling homes is easy. It would be great if selling homes was as simple as putting a for-sale sign in the front of a home, advertising it on your social media and watch it sell, but it is more than just that. FSBO’s often end up losing money by not hiring a professional real estate agent. This could be due to several different reasons such as Overpricing, Mishandling and lack of Negotiation skill.


8. REALTORS CAN SAY ANYTHING TO SEAL A DEAL


Sadly, the world is a cruel place and
 some people can literally go to any extent to earn profit but bringing everyone under the same umbrella cannot be validated. Some agents may lie to you but not all agents indulge in such malpractices. There are honest people (like us, duh!) in the business who get you the right value for your money, show you the best deals and have your best interests at heart rather than their pockets. You just need to be careful about selecting the right agent. Those of us who strongly believe that a good name is better than riches are exceptionally careful with their client’s trust.


9. REALTORS CAN ONLY SHOW THEIR OWN COMPANIES’ LISTINGS

A common real estate myth is that real estate agents can only show their own listings or their own companies’ listings. This is false. Real estate business in Nigeria is intra-connected and partnerships are allowed so, even if a realtor from one company is selling property that is under another company’s mandate, it is perfectly fine as long as they are in a partnership. When sales are made, commissions would be split accordingly between both companies.


10. BE HONEST WITH YOUR PREFERENCES


As weird as it might sound, this is true. We are really interested in giving you the best service but this part is as honest as it can get. A lot of people don’t want their time to be wasted and realtors are a huge part of that crowd. So, how about we save each other some energy and improve the ecosystem? Be honest about your budget so that your agent can find a suitable property for you or at least, redirect you to another who may have something within your budget. Be honest about not being ready to buy but wanting to do a window-shop inspection. This way, your agent doesn’t get raised hopes, is more patient with you or delegates the inspection to someone else if they’re unavailable at the time.


These are some of the most common myths we decided to help you debunk. Found this useful? Comment, repost and share. You’re welcome. 🙂


Remember, Real Estate just got realer with Bricks & Tierra.