Many factors affect the value that a single property may command if it is placed for sale on the real estate market.
There are factors involved but we will look into 6 major factors, in general, there are essential components that make the largest variations in what price a given house may receive and bids that will be offered.
While there are always competing variables, particularly how a specific property compares to others being for sale in the local region, I have over a decade of experience as a Real Estate consultant in Lagos, Ibadan, and Abeokuta.
I’ve come to feel that 6 distinct elements are the most important and vital. With that in mind, this post will seek to quickly debate these factors, as well as why they are important and critical to moving forward with objectivity and a realistic approach to real estate prices.
6 Factors That Impact Real Estate Prices In Nigeria
Location
The better the location, the higher the property value. Real estate in the heart of a large city, highly inhabited, with contemporary living facilities, etc., will undoubtedly be more expensive than comparable homes in outlying locations.
Economy
This is one of the important factors that affect the real estate market is the economy. Obviously, the stronger the economy improves, the more people will tend to confidently, with belief, in a strong, sustainable employment/ job market, be ready, willing, and able, to pay, for a new home, of their own!
Real Estate Product
In real estate, the term “product” refers to the overall character of a property. Property valuers will perform a physical evaluation of what the home will cost. Evaluating the home settings to obtain a sense of the home’s condition. And of course, this will be an added advantage to investors if the value is well spent and shown in the house.
Read: How to Find the Right Investment Property
Supply and demand
Real estate markets can be classified as Buyers’ Markets, Sellers’ Markets, or Neutral Markets! A Sellers Market exists when there are more buyers than houses on the market/sellers. When there are more sellers than qualified buyers looking, it is a Buyer’s Market; when it is more balanced/in-between, it is a Neutral Market. Obviously, the highest prices in most cases occur in Sellers and if not balance can have an impact on real estate prices
Read: Buying Cheap Land
Local market Prices
Much of real estate, is local, in nature! Is your local area, in – demand? What are the strengths, and weaknesses? How does your area, neighborhood, location, etc, compare to other areas? Factors to consider include safety; schools; convenience to transportation, shopping, entertainment; real estate taxes; etc. This could impact real estate prices when considering the factors
The Government
Lastly, the government plays a significant role in the real estate industry. The government can modify rules or policies which may affect or have an impact on the real estate sector. It can even promote or slow down the real estate industry’s further to these policies. Furthermore, the government can provide loan programs to assist people in purchasing homes more easily. All of these factors influence the cost of real estate.
If you need me to help you out on any real estate issues, I can help you out with house inspections, land inspections, evaluations, and surveys. My services come with a well-detailed report.
Don’t forget to share, you might be saving a friend!
Adeyeye IfeOluwa is a Web Designer & Developer, Digital marketer, Real Estate Consultant, and Writer
Landsprout.com came with a passion to help you achieve wealth in real estate investment and solve the hassle within it.
Don’t forget to connect with me on Facebook, Twitter, Instagram, Linkedin, and Youtube
