4 REAL ESTATE INVESTMENT CHECKLISTS
When buying properties during dry season in most places in Nigeria you need to exercise caution. You want to avoid falling prey to areas that are usually flooded during the raining periods. Its quite easy to drive through everywhere when scouting for properties to buy during the dry season.
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Don’t let this fool you. You could be so relaxed in making decisions.
But its totally different when carrying out inspection of houses or lands
during the raining season. Anywhere you spot erosion, you will quickly turn back;
‘ah this place is flooded’- may be your reaction to your estate agent. Sadly,
no signs to generate this type of reaction during the dry season, and so
inspection of houses and lands go easy-peasy.
Dry season real estate investing requires a lot of
skill especially if you are a first-time homebuyer or investor.
Dry season home buying tips:
1. Watch
out for sand dunes
2. Consider
the topography
3. Neighbourhood
signs
4. Quiz
the neighbours
Sand Dunes
Erosion activity usually brings a lot of sand
together. As the water flows, it carries sand along its path. During dry season
these sands become very visible. So next time you see a lot of sands in a
particular area exercise caution.
The topography
This is the general plain. Is it flat, sloppy or
slanted? You can determine this by spreading your gaze over the area. Identify
the high plain first, then look for the low plain. All the erosion often lodge
at the low plain, so avoid such areas.
Neighbourhood signs
The type of fencing in the area can signal to you
that the area is usually flooded during the dry season. People fence because of
security, privacy and erosion. Low fence, 2 or 3 couches round a residential or
commercial property is usually done to
prevent erosion from entering the building. Don’t buy any property within here.
Quiz the neighbours
Is this area affected by erosion? When it rains,
where does the water flow to ? These are some of the questions you should ask
neighbours.
Real Estate Market Trends During Dry Season
There is always a surge during dry season. The real
estate market thrives more. A lot of buying and selling takes place. There is
ease of movement and a lot of activity. Buyers and sellers often wake up this
period.
You get a good deal. A lot of properties are usually
listed for sale during this period, thereby giving you many options to explore.
Sellers appear to have more needs than usual during the dry season. Sellers
attitude is determined by the following: the need to use money for other investments,
the need to pay off debt or loan, the need for vacation or medical treatment
abroad. A smart investor or buyer can take advantage of this situation to drive
the price of properties down.
Building and construction can easily commence during
the dry season. No disturbance from the weather. You can carry out maintenance
of newly purchased properties too.
Dry Season Property Investment Strategies
1. Buy-and-Hold:
Purchase properties at discounted prices and hold onto them until the market
recovers.
2. Fix-and-Flip: Buy
properties, renovate them during the dry season, and sell them when the market
improves.
3. Rent-and-Hold:
Purchase properties and rent them out, generating passive income until the
market recovers.
4. Wholesale: Buy
properties at discounted prices and quickly sell them to other investors or
buyers.
5. Partner with
Developers: Partner with developers to purchase land or properties at
discounted prices, and then develop or renovate them together.
1. Market Research:
Thoroughly research the local market to understand the impact of the dry season
on property prices and demand.
2. Property Condition:
Carefully inspect properties before purchasing, as some may require significant
repairs or renovations.
3. Financing: Secure
financing options before making a purchase, as lenders may have different
requirements or restrictions during the dry season.
4. Risk Management:
Develop a risk management strategy to mitigate potential losses, always carry
out due diligence before buying any property. Buying genuine properties is key
to making profits and avoiding loss. Verify properties at Edo State Geographic
Information Services in Sapele Road, Benin City.
Negotiating property
prices during the dry season can be a great opportunity to get a good deal.
Here are some tips to help you negotiate effectively:
1. Know the market:
Understand the current market trends, prices, and demand.
2. Know the seller's
motivation: Find out why the seller is selling, and use this information to
your advantage. There are various ways of doing this. In case the seller is
hiding his intention, you can use other close and reliable sources. Some
sellers may feel embarrassed to divulge such vital information
3. Inspect the property:
Identify any flaws or needed repairs to use as bargaining chips. Zooming in on
such flaws tend to drop the sellers ego.
1. Start with a low
offer: Make an initial offer that is lower than your target price. This can
throw the seller off balance.
2. Highlight the
property's flaws: Point out any issues with the property to justify your lower
offer.
3. Use market data:
Show the seller comparable sales data to support your offer. This will make the
seller not to overrate the value of his property.
4. Be respectful and
polite: Maintain a positive tone and show enthusiasm for the property, even
when the seller appears angry with your negotiation.
5. Be ready to walk
away: If the seller is unwilling to negotiate, be prepared to walk away from
the deal.
6. Emphasize the slow
market: Highlight the slow market conditions and the potential for the seller
to wait longer for a better offer.
7. Use the weather to
your advantage: If the property has outdoor features that are less appealing
during the dry season, use this to negotiate a lower price.
8. Offer to close
quickly: If the seller is motivated to sell quickly, offer to close the deal
rapidly in exchange for a better price.
9. Work with a real
estate agent: A knowledgeable agent can help you navigate the negotiation
process and provide valuable insights.
10. Be patient:
Negotiation can take time, so be patient and don't rush the process. Even when
you love the property and seem desperate, calm down, so the seller will not
capitalize on such.
11. Stay flexible: Be
open to creative solutions and alternative offers. There are many properties
out there to explore and inspect.
It’s a wise step to
make some considerations.
Pros:
1. Lower Prices:
Prices may be lower due to many property listing, making it a buyer's market.
Yes many Properties flood the market
2. Less Competition:
Fewer buyers means less competition, giving you a better chance of securing the
property you want.
3. More Negotiating
Power: Sellers may be more willing to negotiate prices or offer concessions.
4. Faster Transaction
Process: With fewer buyers, the transaction process may be faster and more
efficient.
5. Better Inspection
Opportunities: Dry weather allows for better inspections of properties.
- Work with a
knowledgeable real estate agent
- Negotiate carefully
and consider potential risks
- Plan for potential maintenance
and repair costs
As a first-time home
buyer during the dry season, here are some valuable tips to consider: