How to technically reduce the cost of buying a House

Getting places to build especially in urban area is increasingly difficult, hence most opt for the outskirt. But if you must build in an area that is completely built up, you will have to buy a house which you must demolish to build your own or renovate.There are basic tactics you can use on the seller to price down the cost, but you have to make sure you don’t get him or her offended.

(1)Find out about the most recent previous sale of the house information-Knowing the year the building was sold and if it had been passed from one buyer to the other and the cost will go along way to determine how much you will pay considering the number of years, when it is overpriced you can use the previous cost to beat down the price.

(2) Purchasing abilities of people at the time-Due to global eonomic meltdown, few people are actually buying houses, hence there are lots of buildings in the market without buyers,when you have such situations just as it is at the time of writing this article, then the cost must go down and you can use the lull in the real estate market to your advantage by also pricing lower.

(3)Check if the right taxes are paid on the house where applicable, if you notice default then you can also put this forward during negotiations.

(4)Relative costs-Check the cost of other buildings in same neighbourhoo, this will give you an idea when the property you are about to price is overpriced.

(5)How accessible is the building to other parts of town

(6)Can you enjoy good basic infrastructures.

(7) Get a valuation report or an appraisal from the real estate agent

(8)Check when last the building was renovated, you can also use this to negotiate.

(9)The rate of population growth is also important in negotiation. It can affect the pricing negatively or positively, so take advantage of it.

(10) Is the area prone to flood, may be the house is at the lowest part in that area

(11)How good is the road leading to the building?

(12)Factor in other basic infrastructures not in place

(13)Check if the building is in an unplanned or unorganized neighbourhood.

(14)Take a contractor to the site let him give you an estimate of the cost of repairs on the house, use that to negotiate the price of the house by removing the cost of repairs

(15)Check for NEPA/PHCN, water and other outstanding bills that were owed by previous occupier. Though small and almost insignificant but it helps in the psychological war of reducing the price.

(16)What economic value does having a building in such area have? Is the place going to develop very fast from your accessment, does it have the potential for revenue generation in the nearest future. The economic value of a house will either reduce or increase its price too.

(17)Is the area an exclusive neighbourhood? or is a rowdy place with area boys or social miscreants everywhere.

(18)Finally call a building professional to the building for assesment and to give you the best advice on the house.

An architect with decades of experience

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