John woke up early on Saturday morning, excited to view the new apartment he had seen listed the previous night. As a young professional working in Lagos, he was eager to move into a nicer place with more amenities. The ad for the apartment boasted beautiful furnishings, a pool, and even a fitness center – all for a price that fit comfortably within his budget.
Upon arriving, however, John felt his excitement wane. The pool was tiny and in disrepair, the “fitness center” consisted only of a single dusty treadmill, and the furnishings were worn and outdated. As he toured the apartment itself, his disappointment only grew. The landlord proudly pointed out the features – but compared to the lovely photos from the ad, it was clear John was not getting the value he thought he was.
The Importance of Value Over Cost
John’s experience shows why it’s critical to focus on value over cost when evaluating real estate options. While the apartment John toured had a reasonable price tag, it failed to deliver meaningful value [1]. As the saying goes – you get what you pay for. When it comes to Nigerian real estate, properties with higher price points tend to deliver superior:
Amenities
Larger pools, better equipment in fitness centers, clubhouses, playgrounds, security systems, etc. These features enhance the quality of life.
Location
Access to transportation, proximity to top schools and businesses, lower crime rates, etc. Location heavily influences functionality.
Infrastructure
Consistent electricity and plumbing, elevators in high-rises, generators, quality windows and doors, etc. Infrastructure impacts liveability.
Finishes
High-end countertops, floors, tiles and paint raise aesthetic appeal. Finishes communicate attention to detail.
Key Takeaways
Focusing too much on bargain prices can lead homebuyers to options lacking in critical amenities, desirable locations, reliable infrastructure and quality finishes – short-changing overall value. Instead of obsessing over costs, homebuyers should:
– Compare property values, not just prices
– Research neighbourhoods, amenities and infrastructure
– Verify finishes and appliances in person
– Prioritize quality over savings
Buying real estate based predominantly on low costs risks poor long-term value. Paying more upfront for value pays dividends through better living experiences.
Avoiding Myopic Focus on Cost
John was crestfallen. His excitement over the advertised pool and fitness center had blinded him to issues with the property’s underlying value. By fixating on costs instead of value, he’d wasted a trip across town. How could he have avoided this outcome?
Set standards based on needs
Had John first made a list of his must-have location, amenity and infrastructure needs, he could have evaluated options accordingly, using cost secondarily. Establishing standards based on lifestyle priorities better frames value.
Vet advertisements thoroughly
Rather than impulsively visiting the first reasonably priced apartment he found advertised online, John should have scrutinized the details. Asking follow-up questions and finding online reviews could have gauged the property’s value more accurately.
Make in-person inspections
No amount of upfront research tops an on-site tour. By insisting on seeing apartments firsthand before signing any lease, John could have determined if the amenities, location and infrastructure delivered the needed value.
By focusing first on objective value metrics like needs, research and on-site inspections, John can avoid overemphasizing advertised costs and being disappointed. The true cost of any real estate ultimately comes down to its delivery of value.
Conclusion
The allure of a good price can seduce Nigerian homebuyers into rushed real estate decisions centered on savings over value. However, cost savings evaporate quickly without quality amenities, locations, infrastructure and finishes elevating a property’s lifestyle value. Rather than obsessing over bargain prices, residential real estate shoppers should use needs-based standards, thorough vetting and on-site inspections to determine a home’s overall value relative to cost. Though initially requiring more effort, value-based approaches better secure the real estate experiences and fulfillment Nigerian homebuyers deserve.
References
[1] Bello, Musa. “The True Cost of Cheap Real Estate in Nigeria.” Property Watch Nigeria. 12 Feb 2022. https://propertywatchnigeria.com/the-true-cost-of-cheap-real-estate-in-nigeria/. Accessed 10 Feb 2024.
