Why most real estate companies find it difficult to give allocation immediately after prospect bought land from their estate
We understand the frustration of clients who feel they are being ignored by their estate company. This problem happens when Estate Company gives their clients a different reason for delaying the allocation process. Deducting the cost of lots from your total property value and waiting for the developer to release lots into the market are the most common reasons estate companies will use to delay allocation, but in this article, we will discuss how real estate companies in Nigeria can speed up allocation, if they are willing to be open and transparent with their clients.
It is my belief that the primary reason most estate companies find it difficult because their real estate valuers or surveyors are a bit too conservative about allocation of land parcels. While some real estate firms take too long before confirming the exact location of a land parcel, other tend to give long wait to the client before any allocation.
This is common behavior of most estate companies in Nigeria because they would rather have the land of an individual than the money. The buyer, who is usually in a rush to develop and build constructions, would be forced to follow the procedures by the company. After allocating to another prospect that has the money ready for it, the same procedure that came with initial purchase will be carried out again, with long credit approvals and other hindrances that may take weeks or months to process. The said property/land then ends up being held down as collateral from one prospect to another as it’s now like a loan from one individual to another.
The main reason for delay of allocation for some client is some developers had not done the design, but it takes time, just like it takes time to build a factory premises.
to gain trust of the estate clients in Nigeria and to make sales easier, i am adding this question. Because they need to add the sum allocated immediately to their portfolio, and the client might not like it.
Estate companies that have been established and taken time to build a steady customer base may not make it easy to get their land allocated immediately after purchasing. An estate company wants to look at the big picture and make sure you, as a client, are right for any land you are requesting.
The answer is simple: they do it to avoid being blame by the banks if they are unable to sell the land after allocation. After all, real estate companies are not banks; they are in the business of buying and selling land. They make money by selling land, but if they allocate and the client does not sell the land, then their money would be stuck in bank for so long and will start accruing interest which could lead to frustration with the bank .
The approval for allocation of land by real estate company is usually the property transaction paralegal, gated community manager and when informed the approval would then be obtained from the Estate Manager. The approval obtained from the estate manager is usually to inform the head office. The head office may hold on till they are able to have funds available with them to have it transferred to seller’s account
The answer to this question is because there is no fast move from buying something to building on it. It takes time for government approval and a lot more other implications in the country that makes it very difficult for people go into building construction immediately.
Now let’s ask, what is the real estate? Is it also one of your assets you have invested in? Yes, it is because realty means to possess permanently. Planning to get into the residential business and looking for a perfect spot for your township? Are you tired of seeing people fight for land when all you want is somewhere serene and secure to build your dream abode? If yes, then comes to Orang Garden City and we will transform your thought into reality.
It’s not unusual for people to dream of owning their own home. Whether it is passion for a particular overseas location or the desire to live closer to family and friends, as long as there are buyers who want to buy abroad, estate companies will still be there for them, helping them to get their piece of real estate abroad.
This is a challenging ten…
Although real estate market in Nigeria is booming, most estate companies find it difficult to give allocation immediately after prospect bought land from their estate. Most real estate companies prefer to hold onto the property for some time until demand for it increased. However, there are some clients would like to start building construction immediately after purchase, but real estate company would delay allocation in Nigeria until then.
Most estate companies find it difficult to give allocation immediately after prospect bought land from their estate? The reason is that the Estate Company will first ask for all essential documents, including (Certificate of ownership, Boundary map with certificate of survey), from the seller, these documents normally take few weeks to finalize. Following are some document that may be needed: paid receipt. Hence, most Real Estate Company in Nigeria always delay allocation of land for construction after purchasing for due process
The answer why it was difficult for most estate companies to give allocation immediately after purchase of land from their estate is because the transaction between them and the entrepreneur was done on trust and there was no document used. In fact, this matter of delayed allocation is one of the major reasons why Nigeria economy cannot grow faster at the moment. However, there is a way out for that pending delayed allocation issues.\\
Unfortunately, most real estate companies in Nigeria do not give allocation immediately after the purchase of land. The reason for this is due to non-developed infrastructure in the country. Hence, most estate companies engage in development before giving their clients allocation of lands. Such may take up to 6 months and sometimes more than a year before land can be given to any client.
Many estate companies in Nigeria now insist on the payment of full cost before passing information on the client to the project management department or agents. This delay in passing on such info may be resulting from the dream to make more sales or some other bad intentions. But as a client why should you wait for allocation after purchase? Why not asked next question?
It is often observed that many real estate companies find it difficult to grant immediate allocation to their client. This may be due to the high percentage of their clients who fail to pay the entire price within the stipulated time. By paying a low or even no down payment, the client is hoping to enjoy the benefit of the absence of one or two years mortgage.
There are many reasons for the delay and trust me, only few estate company can give allocation to their clients immediately. Why and how is that so? it’s because of the following:
As a result, the clients are left for any reason to almost wait for another one month before construction can start. In fact, this might even cause the client to lose interest and go and buy land from another company.
It goes without saying that the process of selling land in Nigeria is like pulling teeth. But at 99 Properties Africa Global Ltd, we have adopted tried and tested measures to ensure your satisfaction and peace of mind.
You and your family are setting out for a long trip to the countryside and are expecting an adventurous weekend. You want your family home to be within easy reach of the main city, highway or rail road so that you can move in or out at a fairly latter date. When getting off from the plane at the airport, you hear people speaking about a new real estate company in that has some interesting land for sale like yours.
Estate companies finds it difficult to give allocation immediately because land is not their primary business. The acquisition and sale of land only become their businesses after a prospect has bought land from that company. The need for due process in the business environment is what most estate companies are known to be practicing and abiding by such process before the commencement of the project. Some customers would like to start building construction immediately after purchase but real estate companies delay allocation because some other things like ground transportation, water supply and electricity would not be ready until the registration process is completed by Land Management Bureau, and other relevant bodies responsible for would be allocated land.
Why Most Real Estate Companies Find It Difficult to Give Allocation Immediately After Prospect Bought Land
When a man buys land from an estate company, he often finds it difficult to get allocation immediately. It is common knowledge that a real estate company earns money by selling land and takes little time actually to have the land ready for building construction. Some real estate companies would delay allocation when they notice that the buyer is not a professional builder who has the capacity to finish building construction at once.
Excerpts from Premium Times: ‘why most estate companies find it difficult to give allocation immediately’? The length of time between the purchase of land and its allocation is not new in Nigeria. According to a report by the United States Agency for International Development, it takes an average of 2 years for lease plans to be approved and a developer to be given an allocation by local government councils.
Estate companies in Nigeria do not allocate immediately after a client bought land from them because they have plans to sell out the piece of land with either build-to-suits or direct sales. Also, sometimes estate companies do hide allocation so that the prices of their given land can rise due to increased demand.
Estate companies find it difficult to give allocation immediately because they need to prepare required documents and most importantly satisfy other stakeholders like a development bank, government where such land are located, as well as follow the set rules of places where to locate the land.
Real Estate Company will delay allocation in Nigeria while they are yet to receive their cost price from the developer, because it is difficult to continue financing the project. If a company is not yet ready to give you the correct allocation, it is because they are not ready to take over the final sales process of your property. Also, it could be that the developer has not been paid.
Building construction is a time demanding job and takes a lot of time to consider. Before any allocation, you need to have a clear plan of how long will it take before you start everything. After that, make sure that you have the required fund for building construction, so that when the allocated period is about to finish, you can move on with building construction with no problem.
This write up is a how-to guide on the real estate business in Nigeria and how to conduct yourself in this very lucrative and challenging industry.
Opportunity knocks! We have identified Nigeria’s real estate market as one of the most lucrative places to invest and an ideal place for you to start building your own empire. You will be a part of one of the country’s most successful real estate companies and will be invested in the largest real estate market in Africa.
writing by @Robert Lawrence.