Pricing: how to know when it is right
Like other products and services, property prices are influenced by the general state of the economy. An economic recession or depression would force general prices down. So if you were making an investment in real estate then, the pricing would differ from when the economy is more robust. In addition, there are other factors which guide pricing decisions. These are discussed below.
The type of building is an important factor. A 3-bedroom bungalow will be cheaper than a 3-bedroom maisonette. If you are getting a quote to buy or develop, for instance, a semi-detached apartment, it is important to do a check on the current prices for that type of structure among other agents or developers.
Age of the building
How old is the building? The age of the building determines how much it is going for. Newly built modern structures are priced higher than older buildings. You need to put this in mind when weighing the received offers.
Real estate prices are driven by location. What location are you considering? Buying a property in Ikoyi cannot be offered at the same price as one in Yaba. Premium locations command premium prices. Even with the same type and size of the property, the location would help determine if the offered price is realistic or not.
Condition of the property
Are you buying a finished building or do you want one which you will complete to your own taste? Many home buyers prefer to acquire a fully completed building and are often willing to pay extra for that convenience. They would not have to think about purchasing bathroom fixtures or laying tiles. Conversely, buying an unfinished property is significantly cheaper and allows you the freedom to choose your kind of finishing.
Quality of finishing
For a completed building, the type of finishing also determines the price at which it would be offered and eventually sold. What is the grade of the cabinets, or the quality of paint? Are the fixtures (doors, gates, windows, etc.) sourced locally or imported?
Which firm built the property? The pedigree goes a long way in determining the price offered. Is the developer known for premium developments? How long has it been a player in the industry? How credible is it? These questions would help guide one’s judgement of the quoted price.