by Patrick Ogungbola
MD/ CEO, BLUEHEDGE REALTORS
If truth must be told, Nigeria is currently in a period of economic difficulty; the signs are obvious. The real estate sector, being a major part of the economy is not sacred to be left untouched by the economic circumstances due to its interconnectedness with other sectors of the economy.
Hence, putting up a property for sale in times like this does not guarantee that the property will be sold automatically. Some properties will stay on the market for weeks, months and even years without being sold, while other properties will be sold within days. If you can consciously look into and correct the below mistakes, you can be assured of a timely sale of your property, and also at a good price.
Below are 10 reasons why your property is still not sold:
1. Unrealistic Prices
Marketing your property at a very high price will scare intending buyers away. Most buyers always work with a budget for their house purchase, and they will inspect as many properties as possible to ensure they make the best choice. If your property is higher than other comparables in the area, your property will not be an option in their list, not to talk of being purchased. Setting unrealistic prices is surely going to keep the property on the market for a long time.
2. Marketing Mismatch
Everyone belongs to one of these class: low income, middle income, and high income; however, it needs to be pointed out that these classes are not fixed; they are transitional. The low income man of yesterday could become a high income man of today.
Anyone that wants to sell a property must first determine the class of people that can afford the property, and all marketing efforts should be tailored to such group of people.
Some sellers make the mistake of marketing their property to the wrong audience or simply using the wrong advertisement medium. Advertising a N500 million property solely on the page of an unpopular or poorly circulated magazine is not going to get that property sold on time. You need to do efficient and effective marketing targeting the right audience that can afford such property.
3. Poor Condition of Property
Experience shows that most buyers always prefer brand new and well finished properties. The truth is, some houses may be brand new, but may not be well finished – such properties are not guaranteed of being sold on time. Most often, only those with very low or tight budget will go for a house in poor dilapidated condition.
Generally, buyers are always very skeptical when it comes to investing in dilapidated houses because of the high cost of renovation that will be involved. Hence, such properties might end up staying on the market for years before they are sold. To guarantee a timely sale, a total renovation/ upgrade of the property is advised. Ensure everywhere is clean and tidy and the greenery/ garden are well maintained.
4. No Pictures on Advertorials
We are in the internet era, and most shoppers, including property purchasers visit the internet to see available options. When prospective buyers are viewing your advertorials (online and offline), they would want to see what the property looks like. Imagine what their reaction will be when they cannot find pictures of your property. Someone once said that ‘Listing your property without pictures, is like cooking soup without adding salt; it just won’t come out right’. All online property websites have emphasized the need for clear, detailed pictures/ video of properties being advertised, this ensures more visits from prospective buyers.
5. Not Paying Adequate Attention to Title Perfection
You can build a beautiful house in a sought-after location, but if the title document that confers ownership to you is ‘faulty’, encumbered or not perfected, your property may stay longer than expected. This point is much more important because most house buyers seek for mortgage for their house purchase, and no financial institution will ever finance a property with poor title.
6. Poor Location
It has been said many times that real estate is all about location, location and location. The cost to build the same house in two different locations, say, Ikoyi and Ajah may be the same; however, the difference in their value will be as a result of the different location. Some location enjoys better infrastructural facilities/ services than other areas. Some of these include: good security, good road with well-connected drainage network, well treated steady water supply, uninterrupted power supply, proximity to offices, shopping centres, means of transportation, amongst others. Areas that have most of these facilities will command higher value and price than areas that don’t.
Properties located in high-crime rate neighbourhoods, with bad road or under high tension power lines are very likely to stay on the market for a long time. Buyers don’t want to risk investing in properties located in potentially unsafe areas unless the seller is willing to shave off a substantial part of the price.
7. Inaccessibility to the Property
Many times, most serious property buyers have gone for inspection, but lo and behold, the key to the property is not available, and hence, they cannot view the property (internally and externally). No sane person will commit millions of naira or dollar on a property he/ she has not seen.
The truth is, buyers want to take a tour and see what that house looks like inside and outside, so you should make out time from your busy schedule and give them a tour of your property. Alternatively, if you are too busy to make out time, utilize ‘virtual tours’ on online property marketing platforms. These virtual tours give the prospective buyer an experience similar to the physical tour as if they were physically present in the property.
8. Not Knowing your Property Inside-Out
Interestingly, some property sellers/ agents do not know the property they are marketing inside-out. A basic principle in marketing is to know the product you are selling. It is very essential to know the features and functionalities of the property to be sold; the amenities, the title, precise location/ address and every necessary details about the property. Prospective buyers will always search for and confirm every available information, and will only buy if all the garnered information are right and are in favour of the property and the person selling.
9. Bad Design
When a house is poorly designed, it might stay on the market for quite a while. Also, a house that has an out-dated interior and exterior design might not be attractive to prospective buyers. Buyers don’t want to spend a huge sum of money on remodelling/ refurbishing immediately after purchasing a property, so they shy away from such properties. Flexible designs can be modified to modern standard with good appeal.
10. You Don’t Have a ‘Reputable’ Estate Agent
This is the last, but very crucial point. Many people see an Estate Agent as someone who just shows you a house and demands for a commission; however, the role of a Real Estate Agent is much more than that. An Estate Agent is the person who acts for the seller or buyer, such that the two parties (seller and buyer) benefit from the relationship, and are therefore happy and prepared to pay for his (agent’s) service.
There are many charlatans that pose as agents, but it is usually advised that prospective buyers and sellers of properties should seek the services of registered, experienced and well trained real estate practitioners. Those ones are the safest to deal with because they are regulated by code of conduct and they can be traced, tracked and reported (in case of professional misconduct) to their regulatory bodies. The major bodies that regulate real estate practice in Nigeria include the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON), Association of Estate Agents in Nigeria (AEAN), and Lagos State Real Estate Transaction Department (LASTREDA). Most of the members of these bodies have undergone serious training and discipline; hence, you can be rest assured of getting value-added services by engaging them.
We wish you a prosperous year 2016.
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