How To Determine The Best Price To Pay For Your New Home

 

When searching for a house whether physically or electronically, it is imperative to write a checklist that will guide you in making the right decision.

Houses built with expensive materials or houses situated in busy areas tend to be higher in price than others. Similarly, houses built in the cities where social amenities tend to be abundant and security tend to be tighter will be high in value.

If money is an issue, then consider looking for houses in areas that are not so popular i.e. outskirt of the city. 

How to determine the best price to pay for your new home.

Below are the most important criteria you should consider before paying for your new home;

 

Flexing your price range

Ask yourself this question: How much am I willing to pay for a home? Once you have a figure in mind, then decide whether you want to rent or buy — which would make more sense considering your circumstances? Would it make more sense to wait another year or two in other to save more money?

Let’s assume you have a budget of ₦5,000,000 — then the next thing on your mind should be;

Type of property

What type of property are you looking to buy or rent? i.e. Land, Bungalow, Duplex, townhouses, etc. You might have to do a market research or consult a property developer in other to determine whether is cheaper to buy a house or buy a land and build from scratch. If you are looking to rent, find out the average market value for that type of property you seek to rent.

Location

This is an important factor that influences the value of a property. Houses in downtown Abuja or affluent areas in Lagos are valued at a higher price compared to houses situated outskirt of the city. 

Is your budget enough to buy the type of property you want in your desired location? If Yes, consult with an estate agent to see if he can get you at least five offers in that area. If No, turn your searchlight towards areas where the prices of houses or lands are within your budget.

 

Other criteria

 

Market temperature

Believe it or not, there are times and season when the prices of houses skyrocket. For example, if there are many people interested in buying or renting a particular property, this may cause the landlord to inflate the price of the house five times its original value. Furthermore, the value of a property may appreciate or depreciate over time depending on various circumstances i.e. additional social amenities, security, war, crisis, natural disasters, etc. 

That is why it is very important for you as a prospective buyer or tenant to be aware of all the facts and figures of the property you are planning to buy or rent before buying or renting. 

Last words

I hope the points explained above have given you an idea about how to determine the best price to pay for your new home? 

The worst thing to do during your home buying or renting process is not to exercise caution. Some people lack patience, they jump the gun and pay for a house without performing due diligence. You could save a lot of money if you follow the steps described above before buying a property or renting a house.

If you have questions or if you think i missed out on an important aspect in home buying process, please do not hesitate to call my attention to it. Leave a comment below.

All the best!

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