Sterling ideas-wading for that right property

In the recent past, we have witnessed how certain factors like urban trends and changes in lifestyles have significantly influenced people’s decisions in housing and real estate investment. Simply put, housing, investment and savings sets some pressure on households’ consumer-bucket list, whether in terms of mortgage, rents or buy land–and-build costs among other needs. Similarly, many Kenyans hardly miss to court their BIG dream of owning a house. This is an aspect of our lives where at one point we have to at least think about owning or holding interest in some property. Thus we say buy now and wait, never wait to buy or better said borrow-build or buy, repay as your property value appreciates.

In fact, in many places, professionals have always reiterated why the best way of doing things right, is in involving the professionals. The opportunities and constraints are within a wide spectrum allowing us to spend within range of few millions to hundreds of the same for the various types of real property in the neighborhoods we desire. I have provided herein under, a brief step by stem guideline that with discretion, consultations and individual intuition may help a person in decision making. The guideline applies for any kind of real estate market segment, whether for purchase or rentals at a particular point in time.

Step 1: List the housing preferences and tradeoffs based on your various circumstances. For example, what plinth areas, which components do you need (a study, sunken lounge, laundry), storeyed house or bungalow, what location and pricing, distance from work and proximity to your preferred social amenities.

Step 2: Set your budget based on your preferences and the constraints as a proportion of your budget (as reflected in real disposable income, savings and revenues from similar investments). This is how you will tell minimum and maximum monetary costs (floor and ceiling within which to spend). This means you consider place of other household expenses: fees, retirement benefits, current rentals, bills among others.

Step 3: Your budget may not get what you need everywhere. Therefore, you will definitely need to establish the costs and benefits, on the basis of market values, prevailing conditions and future changes. Thus you will from the beginning be able to tell which areas you will possibly prefer to hunt from for your choice property.

Step 4:  Seek professional opinion and guidance. Firstly, Formulate a ToR for your Realtor who will professionally deliver to you what item you need: rental house or house to buy, where and when. It is more gainful to find a qualified licensed Realtor registered by the Estates Agents Registration Board (EARB). You are able to find the listed Realtors addresses, based on their good standing on the Board’s website

Step 5: Engage your favorite Realtor in a sober, objective discussion about your plan mentioning: provisional basis of choice. Once the Realtor offers to do the job based on your needs, you should move to the next step to make commitments.

“The best real estate practitioners are them that give their clients what they are looking for. They are available for you. Do not do it alone, simply let them understand your preferences!”

Step 6: Decide whether to engage one Realtor (sole agent) or more than one Realtor (multiple agents). Both instances have advantages and disadvantages. In the latter case, you pay the Realtor who delivers the product needed. We may need to discuss these in future.

Step 7: Sign contract with your Realtor(s). Be ready to pay the commission for the agency services. Some Realtors manage variety of properties in their listing or in the listings of their networks. They will be reliable, informative and may give you additional free services. Most importantly to note is that, you may engage one Realtor (sole agent) or a multiple of them (multiple agents) which have advantages and disadvantages. We may need to discuss these in future.

Step 7: Let the Realtor(s) get you various options and alternatives and form a decision matrix for you of the highest best user selection. A rational consumer you are will always choose an alternative with minimum possible costs and optimal benefits.

Step 8: Once the best is found, purchase decisions should follow. It happens that many Realtors are Valuers and may be willing to offer valuation advice to you, and suggest various product options depending on the opportunities and your capabilities as their clients and hence negotiate better price with Vendors for you. I know how true and beneficial this is. Moreover, some of the Realtors could be in the panel list of Valuers who offer valuation services to your financiers. In this case you would not need to fetch for valuers elsewhere but have a valuation reports ready to your financiers. In certain cases, the Realtor could be selling or letting the particular properties of your choose from their listings.

The challenge of identifying a suitable property should not worry you that much. Do not wade for the best in property dealings now with the professionals all about. Nevertheless, their advisory and your ultimate actions will be influenced by many factors despite the desire for the best choice in the trendy lifestyle dynamics in designs, smart concepts, and amenities.