12 Top House-Hunting Mistakes in Lagos
by Bright Ugochukwu
Feb 25, 2025
House hunting in Lagos can be quite an adventure, but it’s also a minefield if you’re not careful. With so many things to consider, it’s easy to make mistakes that could cost you time and money.
There is a lot to watch out for, from not knowing your budget to skipping the fine print in contracts.
What Are The Top House-Hunting Mistakes In Lagos?
Here’s a look at the top 12 mistakes people often make when searching for a home in Lagos.
- Ignoring Your Budget
- No Must-Have List
- House-Hunting Alone
- Forgetting Future Needs
- Overlooking Funding Options
- Blindly Signing Contracts
- Letting Emotions Decide
- Ignoring Market Trends
- Skipping Property History
- No Proper Inspection
- Not Negotiating Asking Price
- Ignoring Area Development
Let’s break it down in bits.
1. Assess Your Financial Situation
Before you even start dreaming about that perfect home in Lagos, stop and take a good look at your finances. You can’t wing it and hope for the best. Understanding your financial position is the bedrock of any successful house hunt.
Steps to Evaluate Your Finances
- List Your Assets and Debts: What do you own? What do you owe? This gives you a clear picture of your net worth.
- Determine Your Budget: Calculate how much you can realistically afford to spend on a new home. This isn’t just about the house’s price tag but includes other costs like stamp duty, legal fees, and moving expenses.
- Get Pre-approved for a Loan: This step is crucial. It gives you a clear idea of your borrowing capacity and strengthens your position when negotiating with sellers.
Why It Matters
Jumping into the housing market without knowing your financial limits is like setting sail without a map. You might end up in deep waters.
Tips for a Strong Financial Foundation
- Save Ahead: Start saving early to build a substantial deposit. This could also help you secure better loan terms.
- Consult a Financial Advisor: Sometimes, a professional can help you see things you might miss, like potential tax benefits or pitfalls.
- Consider Future Expenses: Don’t think about the here and now. Consider future costs like maintenance and potential renovations.
Pro Tip: In Lagos, there is a housing deficit of over three million units. Having financial readiness provides you with a strong advantage in this competitive market. Remember, it’s not just about buying a house; it’s about securing your future.
2. Create A Must-Have List
When you’re on the hunt for a new house in Lagos, having a clear idea of what you need is crucial. A solid must-have list can guide you through the chaotic world of real estate. Without it, you might be swayed by emotions or overwhelmed by options.
Start by jotting down the essentials you can’t live without.
Think about the number of bedrooms, proximity to work, or even having a garden. Then, consider the things you’d like but can compromise on, like a swimming pool or a modern kitchen. Finally, list the extras that would be nice but aren’t deal-breakers.
Here’s how you can structure your list:
- Must-Have Items: These are non-negotiable. Maybe it’s three bedrooms or a location within a specific school district.
- Preferred Items: These are things you’d like but can do without if necessary.
- Extras: These are bonus features like a gym or a home office.
Pro Tip: Creating this list helps you stay focused and makes it easier to communicate your needs to your real estate agent. Plus, having a list on hand during house-hunting in Lagos can help you stay grounded when faced with rising rental costs and additional fees.
Make sure to share your list with your agent and bring it with you to every property viewing.
This way, you can check off the boxes and ensure the house you’re eyeing meets your criteria. It’s easy to get caught up in the excitement, but sticking to your list keeps you on track and helps you make a decision based on logic rather than impulse.
3. Hire An Agent
House hunting in Lagos can be overwhelming, and that’s where hiring a real estate agent comes in. Engaging a professional can save you time and reduce stress. While it might seem tempting to go it alone, an agent offers invaluable insights and guidance.
Why Hire an Agent?
- Market Knowledge: Agents have their fingers on the pulse of the market. They know about listings that might not even be public yet.
- Negotiation Skills: They’ll help you get the best deal possible, advising on whether a property is overpriced.
- Time-Saving: Agents philtre out unsuitable properties, so you don’t waste time.
What to Expect
- Initial Consultation: Discuss your needs and preferences.
- Property Tours: Agents arrange viewings of properties that match your criteria.
- Offer and Closing: They’ll guide you through making an offer and closing the deal.
Pro Tip: Hiring an agent is like having a trusted advisor by your side, ensuring the process is as smooth as possible.
Brodny City is a great option for luxury living at affordable prices. It is a smart choice for buying or building properties.
4. Think Long-Term
When you’re house hunting in Lagos, it’s easy to get caught up in the excitement of finding a new place to call home.
But, remember, thinking long-term is vital. Consider how your life might change in the next few years.
Are you planning to start a family? Will elderly relatives be moving in?
These are essential questions to ponder.
- Family Considerations: If you plan to have children, consider the number of bedrooms and proximity to good schools.
- Elderly Care: If you’ll be caring for older family members, look for homes with easy access and minimal stairs.
- Resale Potential: Even if you plan to stay for a while, consider who might buy your home when it’s time to sell.
Pro Tip: Buying a home isn’t only about the present; it’s about preparing for the future. A well-thought-out choice today can save you headaches tomorrow.
Also, don’t forget to conduct thorough due diligence before making an investment.
This includes verifying the property’s title and checking local zoning laws. These steps ensure your long-term investment is secure.
In Lagos real estate, future developments can affect your choices.
So, it’s smart to stay informed.
New infrastructure projects or upcoming commercial zones can significantly affect property values. These factors will help you make the right decision for today and for years to come.
5. Research Other Sources Of Funding
When you’re searching for a new home, the financial aspect can be daunting.
But here’s a nugget of wisdom: you don’t have to carry the financial burden alone.
There are numerous ways to secure funding beyond the traditional bank loan.
Explore Different Mortgage Options
Not all mortgages are created equal. In Nigeria, several mortgage institutions offer various packages.
It’s wise to shop around and compare what each has to offer.
Some might have lower interest rates, while others may provide more flexible payment plans.
Consider Government Schemes
The government often offers schemes to help people own homes. These can be a great way to lessen the financial burden. Look into current schemes that might suit your situation.
Seek Out Private Lenders
Private lenders can sometimes offer better deals than banks. They might be more flexible with their terms. However, reading the fine print and understanding all the terms is essential before signing anything.
Pro Tip: Many Nigerians are unaware of the various funding options available. Exploring these options can make home-buying more straightforward and cheaper.
Crowdfunding and Community Savings
In some communities, pooling resources is a tradition. Crowdfunding platforms or community savings groups can be a creative way to gather the funds needed for a home purchase.
Family and Friends
Sometimes, the best support comes from those closest to you.
A loan from family or friends can be less formal and more accommodating. Treat it with the same seriousness as any other loan to avoid misunderstandings.
When dealing with house agents in Lagos and Abuja, always be cautious.
Some have been known to demand upfront fees, which can add to your financial strain. Knowing your funding options can help you navigate these challenges more effectively.
6. Read The Contract Before Signing
Buying a house is a major decision, and the contract you sign is a big part of that decision.
It’s not just a piece of paper; it’s a binding agreement. Before putting pen to paper, ensure you’ve read and understood every word.
Here’s why it’s so important:
- Legal Obligations: The contract outlines your rights and responsibilities. If you miss something, you might end up in a tough spot.
- Hidden Costs: Sometimes, contracts include fees or conditions that aren’t immediately obvious. Don’t get caught off guard.
- Terms and Conditions: These can vary widely. Ensure that what you’ve verbally agreed upon is reflected in the document.
What To Do Before Signing:
- Read Every Line: It might be tedious, but it’s necessary. Look out for any terms that seem odd or unexpected.
- Ask Questions: If something doesn’t make sense, ask. It’s better to clarify now than regret it later.
- Consult a Professional: Whether a real estate lawyer or your agent, get someone knowledgeable to go through it with you.
Pro Tip: Understanding the contract thoroughly can save you from unforeseen surprises and financial strain.
In Lagos, where the property market can be unpredictable, being cautious with contracts is even more crucial. Contracts can be tricky, but you can navigate them confidently with the right approach.
7. Avoid Emotional Decisions
House hunting can be a whirlwind of emotions. The thrill of finding a potential home can easily cloud your judgment.
It’s crucial to stay grounded and not let emotions dictate your buying choices.
Why It’s a Mistake
- Overpaying for a Property: When you fall in love with a house, it’s easy to ignore its flaws or overestimate its value. This can lead to paying more than what the property is worth.
- Ignoring Red Flags: Emotional attachment might make you overlook important issues like structural problems or a less-than-ideal location.
- Rushing the Decision: Excitement can push you to make hasty decisions without thorough consideration.
Tips to Stay Objective
- Set Clear Criteria: Before starting your search, list out non-negotiables. Stick to this list to avoid getting swayed by emotions.
- Take a Break: If you’re feeling overwhelmed, pause the search. A short break can provide a fresh perspective.
- Consult an Expert: A trusted real estate agent can provide an unbiased opinion and help you focus on facts rather than feelings.
Pro Tip: Buying a home is one of the biggest decisions you’ll make. Control your emotions to ensure it’s the right one.
Remember, there’s always another property out there. If something doesn’t feel right or is out of your budget, move on and keep looking.
Staying objective will help you find a home that meets your needs and budget.
8. Understand The Market Trends
Keeping an eye on market trends is like having a weather forecast before heading out.
It can help you decide whether to bring an umbrella or sunglasses.
Knowing whether the market is a seller’s or buyer’s market can also shape your approach to real estate.
Why Market Trends Matter
- Price Fluctuations: Property prices can swing up or down, and understanding these movements helps in making informed decisions.
- Timing Your Purchase: Buying during a dip might save money while buying during a peak could mean paying more.
- Investment Potential: Recognising trends can guide you on where to invest for better returns.
How to Stay Informed
- Read Real Estate Reports: These often provide insights into current market conditions and future predictions.
- Talk to Experts: Real estate agents and brokers usually have the latest scoop on what’s happening in the market.
- Online Research: Use property websites to track price changes and availability in different areas.
Pro Tip: Understanding market trends goes beyond numbers. It’s about seeing the bigger picture and making choices that fit your long-term goals.
Common Mistakes to Avoid
- Ignoring market signals can lead to overpaying or missing out on good deals.
- Relying solely on media headlines without deeper research might mislead you.
- Making emotional decisions based on fear of missing out rather than facts and data.
Knowing market trends isn’t about buying a home. It’s also about making a smart investment for your future.
9. Check The Property History
Investigate Ownership and Changes
Before you fall in love with a house, dig into its history. Knowing who owned it before and what changes they made can save you from future headaches.
Ask the current owner or the agent about any renovations or major repairs. If the roof was replaced five years ago or the plumbing was updated, it’s good to know.
Duration on the Market
Find out how long the property has been up for sale.
A house that’s been on the market for ages might have issues that turn buyers away. Or maybe it’s just overpriced.
Either way, this info gives you a leg up in negotiations.
Reason for Selling
Don’t shy away from asking why the owner is selling.
Sometimes, the reasons are innocent—like moving for a job. But other times, it might be because of a problem with the house or neighbourhood.
Investigate Legalities
Get the legal stuff sorted, and make sure the property documents are in order. You don’t want to deal with disputes or claims after you move in.
Pro Tip: Looking into the property’s history is more than checking the house. It’s about knowing what you’re getting into. A little research now can prevent big regrets later.
List of Questions to Ask
- Who are the previous owners?
- What renovations have been done?
- How long has it been on the market?
- Why is it being sold?
- Are there any legal issues?
When you’re house hunting in Lagos, these questions can make all the difference between a dream home and a potential nightmare.
10. Inspect The Property Thoroughly
You should never skip inspecting a house thoroughly before buying it. A detailed inspection can help you avoid surprises and extra costs later on.
Here are some key aspects to consider:
- Visit at Different Times: It’s crucial to see the property at various times of the day. This helps you understand the natural lighting and noise levels, and how busy the neighbourhood gets.
- Weather Conditions: Try to visit during rainy weather. This way, you can check for leaks or drainage issues. If the area floods easily, you’ll notice it right away.
- Rush Hour Observations: Visiting during peak traffic times can give you a sense of how congested the area gets. This can be a deal-breaker if you value peace and quiet.
- Major Systems Check: Inspect the plumbing, electrical systems, and the roof. Ask about the age of the roof and any recent repairs. This can help you gauge future maintenance costs.
- Security Features: Evaluate the security measures in place. Are there security cameras, sturdy locks, or a neighbourhood watch?
- Property History: Investigate the property’s history. How long has it been on the market? Properties that linger might have hidden issues.
Pro Tip: Taking the time to carefully inspect a property can reveal potential problems that might not be obvious at first glance. It’s always better to uncover these issues before making a commitment.
For more tips on property inspection, consider checking before purchasing a property. This guide covers essential steps like assessing security features and checking major systems, ensuring you make an informed decision.
11. Negotiate The Price
Buying a house is a big deal, and getting the right price is key. You don’t want to pay more than you should, right?
Here’s how to get the best deal:
Know the Market
Before you even think about making an offer, do your homework.
Find out how long the property has been on the market. You might have more negotiating power if it’s been sitting there for a while.
Also, check out similar homes in the area to see what they’re selling for. This will give you a solid idea of the house’s true value.
Don’t Show Your Cards
When you find a house you like, try not to get too excited in front of the seller or their agent. They’re pros at reading emotions and might push you to pay more. Keep it cool and let them think you have other options.
Make a Smart Offer
When you’re ready to make an offer, start with a price that’s a bit lower than what you’re willing to pay.
Starting 1-3% below the listing price is usually okay, depending on the market. This gives you room to negotiate up if needed.
List Any Issues
Use this as leverage if the house has any problems or needs repairs. Point out these issues and ask for a price reduction or the seller to fix them before buying.
Pro Tip: Negotiating isn’t just about the price. You can also negotiate closing costs or ask the seller to include appliances or furniture.
Be Ready to Walk Away
Sometimes, the best negotiating tool is being able to walk away. If the price isn’t right or the seller won’t budge, don’t be afraid to move on.
There are always other houses out there.
Following these steps will put you in a strong position to negotiate a fair price for your new home.
12. Consider Future Developments
When you’re hunting for a house in Lagos, it’s not just about the present.
You’ve got to think about what’s coming next.
Future developments in the area can really change the game, and not always in ways you might expect.
Why Future Developments Matter
Imagine you’ve found the perfect home, but a year later, a massive shopping centre pops up next door.
Suddenly, your peaceful neighbourhood is buzzing with traffic.
Future developments can impact everything from property value to your daily peace.
Key Factors to Consider
- Infrastructure Plans: Check if any new roads or public transport projects are planned. These can make commuting easier but might also bring noise.
- Commercial Projects: Look for upcoming real estate projects like malls or office buildings. They can increase property values but might also lead to congestion.
- Residential Expansions: New housing developments can bring more facilities and people, changing the community vibe.
How to Stay Informed
- Local News: Read local newspapers or online forums for any announcements.
- City Planning Offices: Visit or contact local planning offices for official plans.
- Neighbourhood Associations: Join local groups to get insider info on what’s happening around you.
Pro Tip: Thinking ahead can save you from future headaches. It’s about balancing the excitement of a new home with the realities of what might come next.
Ultimately, being aware of potential developments helps you make a more informed decision. It’s not only about finding a house you love today, but ensuring it remains a place you love for years to come.
Wrapping It Up: Avoiding Pitfalls in Lagos House-Hunting
House hunting in Lagos can be a bit of a rollercoaster, can’t it?
It’s easy to get caught up in the excitement and overlook some pretty important stuff. But, if you keep your wits about you and avoid these common mistakes, you’ll be in a much better spot.
It’s not just about finding a house; it’s about finding the right home for you.
Take your time, do your homework, and don’t be afraid to ask questions. After all, this is one of your biggest decisions, so it’s worth getting it right.
Happy house-hunting!
Frequently Asked Questions
What should I know before signing a house contract?
Before signing a house contract, make sure you read and understand all the terms. It’s a big decision, so if anything is unclear, ask a professional for help. If your agent or broker can’t explain it, find someone who can.
How can I figure out my budget for buying a house?
Start by checking your savings and understanding what you can afford. Think about the type of house you want and how long it might take to save for it. It’s important to know your financial situation before house hunting.
Why is it important to hire a real estate agent?
A real estate agent can save you time and stress. They know the market well and can help you find homes that fit your needs. They can also help you negotiate prices and navigate the buying process.
What should be on my must-have list when looking for a home?
Your must-have list should include the essential features you want in a home, your preferred neighbourhood, and any other important details. This list will guide you and help you stay focused during your search.
How can I avoid making emotional decisions when buying a house?
To avoid emotional decisions, stick to your must-have list and budget. It’s easy to fall in love with a house, but you must ensure it meets your needs and is within your budget.
What are some long-term considerations when buying a house?
Think about your future plans, like having kids or caring for relatives. Consider how long you plan to stay in the house and who might buy it from you later. These factors can influence your decision.
