RED FLAGS YOU NEED TO KNOW ABOUT BEFORE INVESTING IN REAL ESTATE

Buying new properties or investing your money in the Real estate can be very scary especially if you are a beginner hoping to put your money into something profitable and legal. As a beginner in the investment business, there are some red flags you need to know in order not to get scammed or duped by fraudsters. The most important rules in real estate are “If it looks too good to be true, it probably is, know what you want to buy, see the properties with your eyes, request for original documents of all necessary credentials, and make sure the properties are government-approved. If you follow these principles accordingly, you won't fall victim to scammers and fraudsters. If you don't get familiar with many things, you should with these rules in real estate transactions.

These scammers come disguised as real estate professionals in all of the forms you can imagine, only to collect your hard-earned money and disappear. Being scammed in this present economy we are in is a bad place to be. Not only does it affect your financial status, but it also handicaps you of money that should be available for other investments or important financial errands. Therefore, it is very important to know these red flags and make sure you are not being duped in any of these processes. It is important to do your part in stopping these fraudsters to avoid stories "that touch the heart, in this case, Bank account!"

Apart from fraudsters that come for your money, there are also real estate agents who are not quite competent enough and they give bad advice leading to a bad investment. For instance, I have come across several real estate agents on social media platforms like Facebook and Instagram that are not professional enough in the business, hence giving you advice that might lead to loss of money and falling into the hands of scammers.

Here are some red flags/dangers to look out for when purchasing a property in places, especially Lagos.

FIGURES THAT DON’T ADD UP

Like I said, "Once it's too good to be true, then it probably isn't true". When the price of a property is unbelievably high or low, it's a definite red flag. I know a lot of people, if not all likes free stuff (I mean it's nice to get something without having to pay for it, everyone knows that), but when someone is offering you a land or a building that has been built and furnished or even an uncompleted building for a ridiculously low or high price, it's just common sense to RUN! It's a bad market! If a property is massively underpriced for an area, there's likely something wrong with it. There's no incentive to sell property cheaply unless there's a reason to. If you are dealing with an overpriced property, you may have a homeowner who is suffering from seller bias on your hand. This is why it is always advised to have a professional rest estate agent with you when purchasing any property, the agent should have a better understanding of how pricing is.

IMPATIENCE ON THE PART OF THE REAL AGENT

Just as you need a professional real estate agent when buying a property or investing in a property, you need to be careful of the type of agent you employ. Some of them are even worse than the fraudsters. When you notice that your real estate agent is trying to push you to make a payment or getting impatient to close the deal, be careful as that is a red flag. Try to investigate and be sure that you are not been scammed. As a good real estate agent, you must make sure that your client is not being scammed and that he/she is happy with whatever property he/she decides to buy. It is never a good idea to rush into paying for any property so do not let them push you into making payment for anything if you are not 100% convinced that it is legit. An honest transaction does not involve all of that rush and pressure

REFUSAL TO SHOW DOCUMENTS OF OWNERSHIP OF PROPERTIES

This is a major RED FLAG, please take note. Documents of ownership of the property is a very important document that needs to be present when buying or selling land, building, or property. It helps buyers to be sure that they are buying the property from the original owner and not some fraudster. The document carries the full legal name of the original owner of the property, refusal to show this document is a sign that the seller might be a fraudster trying to sell a property that does not belong to him. So if you notice that the seller is being sketchy about showing you the documents, be careful with the purchase

LISTING PHOTOS OR DESCRIPTIONS THAT DON'T MATCH

Creative photography can easily hide issues you would have never imagined existed until you step foot into the house. Make sure you always do an in-person walk-through before you put down an offer to see the condition of the home for yourself, especially with your first few purchases. This is extra critical if the listing has very limited exterior photos or no photos at all. You’ll quickly learn that just because the outside of the home looks orderly doesn’t necessarily mean the inside will be in good shape.

INSPECTION DENIAL

It is very important to inspect the property you want to buy both inside and outside. If you skip other processes involved in securing land or a house, don't miss the step where you should actually go and physically see the property. Fraudsters can be very smart and that's because they have been in the scamming game for a long time. They will continue to delay the visit, postponing and eventually denying you the opportunity to get to see where you will be investing your money. You need to be extra patient in real estate transactions. Take your time. You can tell them you are willing to wait until they are ready to show you what you are about to pay for.

LEGAL CHECKS BEING AVOIDED

Large real estate deals, in particular, necessitate the assistance of a lawyer. When a real estate agent refuses to have a lawyer engaged in a real estate transaction, be aware that this is a red flag. They assure you that everything is in order and that you need not be concerned. These are slick talkers, and if you're not watchful, you'll be giving in to their absurd and fraudulent proposals in a perfectly planned and fast move. Beware

In conclusion, real estate transactions necessitate patience and thorough due diligence. Allow for human error and blunders, but not so many that you feel compelled to withdraw. Don't worry about putting something on wait; you won't miss out on the "greatest offer." That's what they tell you, that you should hurry before the opportunity passes you by. Other reasonably reasonable deals can always be found.

It is worth noting that the appreciated value of the real estate is highly dependent on its location. When thinking about investing in real estate, keep in mind that the location should be close to key points of interest in Nigeria, which are mostly untapped resources for the real estate business.

Are you looking for new investment properties in Nigeria? Check out our home page www.exelproperties.com for more information.

Finding your Property is our mission. And we are delighted to be a part of your real estate journey.

I’m Iluyinka Adeyemi, I’m your very Caring Realtor and with me by your side, all your Real Estate expectations will be met and your peace of mind is guaranteed.

I am not “a quack” and neither did I just bump into real estate, apparently it’s been destined before I even realized it.

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