9 Steps of Buying a Home in Kenya
As of the fourth quarter of 2020, 71.1% of house sales were apartments, 23.4% were mansions, 4% were bungalows, and 1.7% were townhouses. These statistics show that in 2020 most people afforded to buy apartments amidst Covid-19 threats to the economy. This shows the need for a home, regardless of the economic situation. As a result, this blog will give you a step-by-step guide to buying a home in Kenya. We shall also show you what to consider when buying a home, whether you are a first-time buyer or not.We focus on ensuring more people own property in Kenya, whether from abroad or locally. We majorly provide tips on investing and managing real estate in Kenya. We also have a good network of real estate agents who link buyers to home sellers in the country.Keep reading.
9 Steps of Buying a Home in Kenya
1. Get Your Finances Right
Buying a home requires a lot of money. Therefore, if you dream of owning a home in Kenya, it’s good to have strategies to prepare the funds. For instance, you can plan to have several income streams, either passive or active.
If you already have a job, you can start saving money in your bank savings account, preferably a bank that can offer you a mortgage loan. In addition, think of other ways to make money to boost your main income.
You can give yourself a target to save for a year and work towards it. Being disciplined enough to avoid unnecessary spending is always a good idea.
To know the amount you should save, you can do shallow research on the current home prices at your preferred location. The research will give you a figure to save towards it. You can also know how much you should save since most banks in Kenya require atleast 5% downpayment cost.
2. Assess the Property Market
When would you like to buy your home in Kenya? It’s good to research the best season to buy a house in Kenya. You should understand the seller’s and the buyer’s market before deciding when to buy your home in Kenya.
A good knowledge of the types of houses available is also an added advantage when buying a home in Kenya. You should know the type of house you need and the average price tag.
In addition, understand that home prices differ from one location to another. Therefore, consider understanding the property market in your area of interest.
3. Get a Real Estate Agent
After you’ve understood the best time and the house you need to buy in Kenya, you should get a real estate agent to help select the best house in your preferred location. Real estate agents know the property market more than you and are a good help when buying a home in Kenya.
Furthermore, real estate agents know the new and old properties in an area and why the owners are selling them. Agents can give you intel about a property you could not have gotten anywhere else.
4. Send an offer
After a real estate agent helps you get a house you are interested in, you can send an offer to the wonder with your quoted price. Again the real estate agent can help you draft a good offer that the seller will likely accept.
Unless houses are rare, sending an offer with a lower price than the sellers asking price is advisable. Alternatively, you can brace yourself to bargain for the property.
5. Meet the Seller
If the seller accepts your offer, they will contact you for a meet-up, probably through the real estate agent. This is the right time to negotiate the property with the help of the real estate agent.
Furthermore, it’s also the right time to ask the seller to show you the property. Therefore, be ready to book a property you’re a date that’s convenient for you.
6. Do a Property Tour
It’s very important to see the physical property you are buying. See whether the property matches the seller’s description and what you saw in pictures and video tours.
It’s important to go with your companion, probably your family or friend, to help you identify some damages that the seller should fix.
You should be attentive enough to identify anything that doesn’t meet the description you got. In addition, you can forego the purchase process if the property doesn’t meet your requirements.
However, if you are comfortable with the property and the price you’ve agreed with the seller, you can search for a property lawyer to help you finalize the transactions
7. Get a Property Lawyer
Most real estate agents have a strong professional network, including lawyers who can help you with legal matters in a property purchase.
Getting a lawyer who understands all legal matters concerning property matters in Kenya is important. The property lawyer will be responsible for getting the agreement documents for the purchase.
8. Notify your Mortgage lender
After you have everything in place, it’s time to notify your mortgage lender about the home you want to buy. Most lenders would send a property valuer to assess the property’s value before lending you the mortgage.
If the property value assessment matches the price tag, you can close the deal with your seller.
9. Close the Deal
Closing the deal is the last step if buying a home in Kenya. Having your witnesses(a friend or family member), the lawyer, and the lender is important when closing the deal. The seller can also have their witnesses while closing the deal.
Factors to Consider When Buying a Home in Kenya
Regardless of the urge to buy a home in Kenya, you should never rush the process. Remember, you should be keen before and during the home-buying process. Therefore, we will give you some factors to consider before buying a home in Kenya.
Location is usually the major factor when buying a home in Kenya. You should choose an area with security, good schools, hospitals, transport, water, and electricity. A location with all those amenities lets you live in peace once you buy a home in the neighborhood.
What is your preferred home size? This question is important, especially if you are buying a home for the first time. Don’t let anyone push you into buying a home that you will regret later. If you have a family, consider it to decide the size of the home you want. In addition, consider the size of the rooms according to your preferences.
The Home’s Condition
It’s a major frustration if you notice some damage in the house after you’ve already made the purchase, that’s why you should be more careful when buying a home in Kenya. You can hire a property valuer to see the value of the home according to its condition.
However, if you are getting a mortgage loan for the home, the bank usually sends their property value to assess the property before giving you the loan.
Either way, it’s important to see the house and assess and see whether any hidden damages may frustrate you later.
Buying a home in Kenya is easy, especially with the right guidance. Don’t hesitate to search for a trustworthy real estate agent on our site to help you find your dream home in Kenya.
Frequently Asked Questions
What should I do when buying a home in Kenya?
You should be a top-notch researcher to get the right property at an affordable and worthy price. Search for all the information you need about home ownership and learn.
Is it cheaper to buy or build a home in Kenya?
In most cases, building a house is cheaper than buying the complete house because you can negotiate building materials and labor. However, buying a home might be a good option if you donÃ¢â‚¬â„¢t have time to buy land and build.