5 Steps to Close a Deal with Real Estate Developers in Nigeria

The real estate market in Nigeria is very dynamic, especially when it comes to purchasing properties from real estate developers. Most of the challenges faced by intending buyers include delay in construction timeline, incomplete house documents, and price fluctuation.

In Nigeria, the real estate market size was valued at USD 91.1m in 2023, and is predicted to reach USD 137.8m by 2030, at a CAGR of 6.1% from 2024 to 2030. [Source:NMSC]

For a buyer to successfully close a sale with an estate developer, he must learn to negotiate price, create an action plan, and prepare to address objections.

This comprehensive guide will equip you with the right information and steps on how to close a successful real estate deal when purchasing properties from real estate developers.

5 Crucial Steps to Close a Deal when Purchasing From Real Estate Developers

Step 1: Conduct Due Diligence

Conducting thorough due diligence is a must when dealing with a real estate developer. This process goes beyond inspecting the property; it involves verifying the legitimacy of the developer, the property’s legal status, and the accuracy of all documentation. 

To effectively carry out this process, you should start by verifying the developer’s track record to see if they effectively deliver projects on time, pay attention to customer reviews, if possible, pay a visit to already constructed projects. 

Also check the house documents to ensure that the developer holds the legal rights to sell the property. This involves visiting relevant government land registries in that local government to confirm land ownership and zoning permissions.

Always involve a professional lawyer to review documents and clear any ambiguities.

Step 2: Negotiating Power

Once you have completed due diligence, the next step is to negotiate price with the developer. 

As a buyer, you have to know the market trends and market rate so as to get favourable terms and added benefits from the developer.

Understanding the market gives you leverage and ensures you do not have to overpay when purchasing a house. 

Make use of real estate platforms, and reliable realtors, or even visit properties in the neighbourhood to gather relevant pricing information.

Always understand the developer’s perspective when negotiating. Developers often have multiple properties to sell and specific goals to meet. Approaching negotiations with empathy has proven to be advantageous. Many developers are open to flexible payment plans which benefits both parties. 

Step 3: Close the Deal

This requires completing the necessary legal and financial processes. This step is a very crucial and critical one in the buying process as any oversight could lead to complications.

Make sure the contract is well drafted and comprehensive. All the terms should be clearly outlined from payment schedules to specifications regarding the property’s finish. A lawyer should review these contracts before it is signed by both parties as 50% of property disputes arise from poorly drafted contracts.

It is also important to verify that the developer obtained all necessary building approvals and permits. Missing permits could result in destruction of property in the nearest future.

Step 4: Inspect the Property before Handover

Before taking possession of the house, make sure to inspect the property properly. This is called the “Snag list” check, where you clearly identify what was promised and what was delivered to avoid “what I ordered vs what I got”. 

What to Look for in the Snag List:

• Check for cracks on the walls and broken pipes
• Uneven floorings
• Test all the electrical outlets
• Check to see fittings are installed correctly

If you find any defects, quickly raise an alarm to the developer so the issue is quickly looked into. Many developers provide a warranty of 3-6 months to fix any defects in the building during the handover process.

Conclusion

Purchasing a home from a developer can be a smooth and enriching experience if you approach it with the right strategy. As long as you meticulously inspect the property and ensure all legal steps are carried out, you can minimise risk and better close the deal.

Summary Checklist:

1. Always approach negotiations with market knowledge
2. Use secure payment channels
3. Verify the developers credentials and property title
4. Inspect the property thoroughly before moving in
5. Make sure to draft comprehensive contracts and duly signed by both parties and a lawyer

Need help negotiating or verifying real estate deals? Contact us for professional assistance.