How to Make a Competitive Offer in Nigeria’s Seller’s Market

In Nigeria’s real estate market, especially in high-demand cities like Lagos, Abuja, and Port Harcourt, competition for quality properties can be intense. Sellers often receive multiple offers, and buyers need to act strategically to stand out. Here’s how to make a competitive offer in Nigeria’s seller’s market:

1. Get Your Finances in Order

Why It Matters: In Nigeria, sellers prefer buyers who can demonstrate financial readiness. Many sellers are wary of delays caused by financing issues.

Steps to Take:

Save Upfront: If you’re paying cash, ensure you have the full amount ready. For mortgage buyers, get pre-approved by a reputable bank or mortgage lender.

Show Proof of Funds: Provide a bank statement or letter from your bank to prove you have the funds to complete the purchase.

Consider Alternative Financing: Explore options like cooperative society loans or developer financing if traditional mortgages are not feasible.

2. Research the Market Thoroughly

Why It Matters: Property prices in Nigeria can vary widely even within the same neighborhood. Understanding the market helps you make a competitive but reasonable offer.

Steps to Take:

Work with a trusted real estate agent who knows the local market.

Compare prices of similar properties in the area (e.g., same size, location, and condition).

Be prepared to offer slightly above the asking price if the property is in high demand.

3. Make a Strong Initial Offer

Why It Matters: In a competitive market, hesitation can cost you the property. A strong initial offer shows seriousness and can discourage other buyers.

Tips for a Strong Offer:

Offer close to or above the asking price, especially if the property is in a prime location like Lekki, Ikoyi, or Banana Island.

Avoid lowball offers, as sellers may see them as disrespectful or unserious.

Use odd numbers (e.g., ₦52,500,000 instead of ₦50,000,000) to make your offer stand out.

4. Minimize Conditions and Delays

Why It Matters: Sellers in Nigeria often prefer buyers who can complete the transaction quickly and without complications.

How to Minimize Delays:

Waive Certain Conditions: If you’re confident about the property, consider waiving some conditions (e.g., inspection) to make your offer more attractive.

Pay a Higher Deposit: Offer a larger deposit (10%–20% of the purchase price) to show your commitment.

Be Ready to Close Quickly: Have all your documents (e.g., ID, tax clearance, proof of income) ready to speed up the process.

5. Be Flexible with the Seller’s Needs

Why It Matters: Sellers may have specific needs, such as a quick sale or extra time to move out. Flexibility can make your offer more appealing.

How to Be Flexible:

Ask the seller about their preferred timeline and try to accommodate it.

Offer a rent-back agreement if the seller needs more time to vacate the property.

Be prepared to pay in installments if the seller is open to it (common in Nigeria).

6. Work with a Trusted Real Estate Agent

Why It Matters: A skilled agent with local knowledge can help you navigate the complexities of Nigeria’s real estate market and craft a winning offer.

How an Agent Can Help:

Provide insights into local market trends and pricing strategies.

Negotiate on your behalf to strengthen your offer.

Guide you through the legal and documentation process (e.g., title search, deed of assignment).

7. Verify the Property’s Legitimacy

Why It Matters: In Nigeria, property disputes and fraudulent transactions are common. Sellers are more likely to accept offers from buyers who demonstrate due diligence.

Steps to Take:

Conduct a title search at the land registry to confirm the property’s ownership.

Verify that the property is free from disputes, liens, or encumbrances.

Hire a lawyer to review all documents and ensure the transaction is legally sound.

8. Be Prepared to Act Quickly

Why It Matters: In Nigeria’s seller’s market, good properties sell fast, and delays can cost you the opportunity.

Tips for Acting Quickly:

Stay in close communication with your agent.

Be ready to view properties as soon as they’re listed.

Submit your offer as soon as you’re confident about the property.

9. Stay Calm and Patient

Why It Matters: The homebuying process in Nigeria can be stressful, especially in a competitive market. Staying calm and patient will help you make better decisions.

Tips for Staying Patient:

Don’t let emotions dictate your offer—stick to your budget.

Be prepared for rejection and keep searching until you find the right property.

Trust your agent’s advice and expertise.

Final Thoughts

Making a competitive offer in Nigeria’s seller’s market requires preparation, strategy, and a willingness to act quickly. By getting your finances in order, researching the market, minimizing delays, and working with a trusted agent, you can increase your chances of success.

Remember, the goal is not just to win the property but to secure a home that meets your needs and fits your budget. With the right approach, you can navigate the challenges of Nigeria’s real estate market and find the perfect home for you and your family.