13 Myth about real estate in Kenya in 2018

1.Real estate agents are paid a salary

Despite what many think, the public is horribly confused about how agents make a living.

There must be a salary floating in the background that supports agents — after all, how is it that they can appear so well-groomed, professional and polished while hosting lavish broker events, open houses or other marketing activities, showing customers around town all day and buying them lunch?

Attention perpetual house shoppers and sellers just testing the market: the agent’s time and expenses are 100 percent on them.

 

 

2. The agent keeps all the commission

Everyone needs to understand that commission is legally paid to the agent’s employing company, which in turns pays the agent.

Depending on what side the agent is representing (buyer or seller), their brokerage will earn the listing or selling side commission.

No matter what the commission is, the amount paid to the agent is not the entire commission the company takes its portion and then the agent gets his or her split.

There are usually additional fees that come off the top of the gross amount of commission being paid.

 

3. The typical commission is 6 percent, right?

All commissions are negotiable and vary according to a variety of factors with type of property, price and such in my market.

Every market is different.

 

4.An agent’s transportation expenses are reimbursed

If only real estate brokerages had a “transportation fund” to reimburse agents for these things.

The trips to show a buyer homes when a new one hits the market.T he three days spent driving all over town with a relocating buyer who decides not to end up moving

The trips to a listing, prepping for showings, and continually checking on the vacant property; or meeting vendors contractors, photographers,  none of it is paid for by anyone but the agent.

 

5. Marketing expenses aren’t the agent’s responsibility

Think about the video production, 3-D tours, digital marketing campaigns, websites, broker open house events, the design and printing of brochures.

Marketing is done by — your real estate agent who didn’t ask the seller to contribute one dime, even after agreeing to discount commission.

 

6.A home passes or fails inspection

An inspection is meant to assess the condition of a home. An inspector doesn’t “pass” or “fail” a home.

They will provide a report explaining all issues along with a summary of the age of key systems such as plumbing, electric, and the roof along with an estimate of economic life remaining on those systems.

 

7.Weekends bring out the most serious buyers

Contrary to popular belief, weekends don’t usually bring out the most serious and ready-to-buy buyers. Open houses and other open-to-the-community events tend to bring voyeurs, nosy neighbours and curiosity seekers interested in looking at decorating ideas and how other people live.

The most serious showings tend to happen during the week. In many markets, it is usually too late to wait until the weekend to look at any properties of interest.

8.It is better to price a home on the high side as the seller can always come down

This is one of the most common myths in real estate. Sellers want to protect their asking price so they think overpricing it is an effective defence mechanism against selling too low.

Overpricing your home often leads to the home sitting and not receiving much interest. If a home is priced competitively from the beginning, the chances of attracting optimal traffic from the beginning greatly increase.

9.When making an offer on a home, you need to start with a low offer

Just as sellers make the mistake of overpricing, buyers often make the mistake of wanting to start with a really low offer.

Although there is nothing wrong with negotiating, if the home is priced within range, a very low offer won’t be taken seriously.

10.The longer a home has been in the market, the more negotiable the deal

Property that lags on the market is likely sitting due to its asking price as well as its layout, location or condition.

An awkward layout or poor location can also play a role. The seller may also be unrealistic about their asking price

11.Multiple price reductions mean the seller is desperate to sell

If a home has had multiple price reductions, that must mean the seller desperately needs to sell.

Price reductions are made to bring the property in line with current comparable, price it to be competitive or underprice it to help generate more interest.

When a seller has done several price reductions it means they are through with negotiation.

12.Multiple offers give the sellers an advantage

If a seller receives more than one offer and decides to counteroffer all buyers, that increases their leverage and the likelihood of selling for top dollar.

Maybe but maybe not.

Not every home is a must-have in every market, and there will always be another property that becomes available.

As a seller, if you play this card wrong, you could end up having the entire situation backfire and be forced to watch all the buyers walk away.

13.All agents are the same

No two agents are the same, nor is their approach to real estate. The people often put all agents into the same bunch and considers them a commodity without really taking the time to study the differences in their approach, presentation and achievements.

As in every profession or organization, there are those who are committed to excellence, devote endless amounts of time and energy to working with buyers and sellers and are highly adept problem solvers. Others simply march to lower standards and do the bare minimum to get by.

Just as some attorneys and physicians are better than others, so are real estate agents. Some are more resourceful, responsive and creative.

7 reasons why you need a real estate agent to market your property

Are you struggling to sell your real estate property in Kenya? These are the seven reason why you should consult a real estate agency in Kenya to market for you.

  1. An experienced real estate agent can help you get your house ready for sale, , and suggest improvements to help your house sell.
  2. A real estate agent can help you fill out the paperwork you will need before you offer your home.
  3. A real estate agent may be able to provide referrals of qualified home inspectors and contractors should your home need additional repairs or if it needs to be brought up to code
  4. A real estate agent regularly talks to other agents. Word-of-mouth is an extremely effective way of finding buyers.
  5. A real estate agent may have a special showing of your home and limit it to other agents. Those agents will see your house with a professional eye with their clients in mind.
  6. A real estate agent can negotiate with potential buyers and their agents in your place. The agent must act on your instruction and must tell you about offers. Your real-estate agent will be particularly helpful if the potential buyer is extremely demanding.
  7. A real estate agent is professionally trained to ensure that the sale of your house proceeds smoothly. When trouble arises, your agent will let you know when you need a lawyer.

5 reasons you need a real agent when looking for a house in Nairobi

1.Education & Experience

If you hire a real estate professional  you don’t need to know everything about buying and selling real estate. The trick is to find the right person. Why not hire a person with more education and experience than you.

2.Agents Are Buffers

If you’re a buyer, your agent keep the builder’s agents at bay, preventing them from harassing you day and night. If you’re a seller, your agent will filter all those phone calls that lead to nowhere and try to induce serious buyers to write an offer immediately.

3.Neighborhood Knowledge

Agents have vast knowledge or they know where to find the industry buzz about your neighborhood. They can identify comparable sales and hand these facts to you, in addition to pointing you in the direction where you can find more data on schools, amenities etc.

4.Price Guidance

Agents do not set prices for sellers or buyers. However, an agent will help to guide clients to make the right choices for themselves. If a listing is at 10%, for example, an agent has a 10% vested interest in the sale, but the client has a 90% interest. Selling agents will ask buyers to weigh all the data supplied to them and to choose a price. Then based on market supply, demand and the conditions, the agent will devise a negotiation strategy.

  1. Market Conditions Information

Real estate agents disclose market conditions, which will govern your selling or buying process. Many factors determine how you will proceed. The average per square foot cost of similar homes, median and average sales prices, average days on market and ratios of list-to-sold prices, among other criteria, will have a huge bearing on what you ultimately decide to do.

6.Professional Networking

Real estate agents network with other professionals, many of whom provide services that you will need to buy or sell. Agents know which vendors have a reputation for efficiency, competency, and competitive pricing. Agents can, give you a list of references with whom they have worked and provide background information to help you make a wise selection.

7.Negotiation Skills & Confidentiality

Top producing agents negotiate well because, unlike most buyers and sellers, they can remove themselves from the emotional aspects of the transaction and because they are skilled. It’s part of their job description. Good agents are not messengers, delivering buyer’s offers to sellers and vice versa. They are professionals who are trained to present their client’s case in the best light and agree to hold client information confidential from competing interests.

8.Develop Relationships for Future Business

The basis for an agent’s success and continued career in real estate is referrals. Few agents would survive if their livelihood was dependent on consistently drumming up new business. This emphasis gives agents strong incentives to make certain clients are happy and satisfied. It also means that an agent who stays in the business will be there for you when you need to hire an agent again. Many will periodically mail market updates to you to keep you informed and to stay in touch.

Why June 2018 is the best month to invest in Real Estate in Kenya

Looking at the current economic crisis, you might be asking yourself if this is the best month to invest in real estate. Tell you what, you are not alone, working in the real estate industry in Nairobi Kenya, all my friends ask me the same question when we meet up for coffee. So I thought I do this article.

My best response can be quoted from Warren Buffett:

“Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.”

— Warren Buffett

The economy is dragging back up from the chaos of politics we had in 2017. Economy fluidity has reduced and the expendable cash among the middle class has dwindled. But for smart investors, this could be the best time to grab a property when the developers and agency have reduced the prices to march the struggling economic times.

 

In Villa Care we have something for everyone:

Properties Under 10M

JACQSHE HOMES 3 BEDROOM

Jacqshe Homes apartments in Ngong town is a magnificent development featuring beautifully designed 1, 2 & 3 bedroom apartments master en-suite, uniquely finished to the highest standards. The plinth areas are 653 sq.ft and 867 sq.ft respectively. Prices starting from 3.9M.

LENANA GARDENS 2Br from 7.25M

Truly one with nature, this development of 245 , 2 bedroom apartments with the master en-suite embraces its serene location with intelligent designs making you feel right at home. With a plinth area os 93sqm.

 

 

JABOLANI GARDENS 

Located off Rimpa Kandisi road, is the exquisite apartments present an uninterrupted view of the expansive national park and a beautiful view of the airport skyline.

The houses encompass a spacious master bedroom while finishes incorporate ceramic tiles and European granite worktops in the kitchen with splash area. From 4.5 M

 

DAHLIA GARDENS – 2 & 3BR FOR SALE 

These elegantly built apartments are nested on Thika road, approximately 15 minutes drive from the Nairobi CBD.I t consists of 2 and 3 BR apartments on one acre that offers exquisite and environmentally conscious home designs to create an aesthetically pleasing and conducive environment to enhance your quality of life. From 7.3M.

 

 

360 Court 2 BR Apartments

This is a dream house close to the main road but yet peaceful and quite, situated along Mombasa road and 5 Kms from Jomo Kenyatta International Airport. 360 Court Apartments Phase 1 is located in Syokimau area, off Mombasa road. Syokimau is the fastest growing residential area and the latest suburb of Nairobi Metropolitan city following decongesting the city of Nairobi campaign. From 4.5M

 Property Between 10M and 20M

MALIBU COURT 3Br from 12.95M

Malibu Court apartments is a unique development comprising sixty-four 3 bedroom apartments all master en-suite. The apartments are ideally located in Madaraka estate approximately 10 minutes drive from the Nairobi CBD. Social, recreational and shopping amenities are available: Nyayo Stadium, Uchumi – Lang’ata, Nakumatt Mega, T-Mall, Nairobi West Shopping Centre, Strathmore University and it is a 2 minutes drive to Nairobi National Park.

Delta Plains Estate from 14M

Delta Plains Estate is a development of 4 bedroom townhouses in a gated community on the main Mombasa Road with a mini shopping centre in a breathtaking setting. Everything has been considered at Delta Plains from the integrated wardrobe space, generous room sizes, ample parking space, all designed for maximum comfort and convenience. The estate has cabro paved driveways, borehole water supply and alternative power supply complete the outdoor experience. Each townhouse has been designed to capture light and fresh air, with double doors from the lounge and dining room leading onto a private garden.

 

DUCHESS PARK LAVINGTON FROM 26.95m

Duchess Park is the most luxurious and prestigious community in Nairobi. Located in the exclusive serene leafy suburb of Lavington, along Hatheru road, this amazing development is all you ever wanted in an apartment. It comprises of 70 Apartments;

60 spacious 3 bedroom apartments all en-suite with spacious master bedroom, balcony and self-contained DSQ. Plinth area of 230sqm at Cash: Ksh. 26.95MInstallment: 27.95M, and 29.95M for Mortgage buyers.

 

Make a wise BOLD decision today. 

 

Why You Should Rent A Fully Furnished Apartment In Kenya

Renting a home isn’t just a financial decision it’s a lifestyle choice. The option of renting a fully furnished is the right choice for some people. Below we have compiled reasons why its better to rent a fully furnished apartment as compared to buying your own or building.

Minimal Commitments

If you have a job that requires a lot of travel or you simply enjoy the freedom that comes with fewer possessions, having fewer strings and fewer logistics to take care of when moving is a huge weight off your shoulder. Furniture is very expensive, making many people very reluctant to simply sell them. Another issue with furniture is the headache of hiring a moving company, paying for storage, and worrying about damage.

 

Cost-effectiveness

If you are travelling with your family, a furnished apartment will be a more economical choice than staying in a hotel. You are able to have more room at a lower price than if you booked several rooms in a hotel. You can also control what you eat and because you set your own menu unlike having to stick to the hotel’s scheduled diet and meal times. On the plus, everyone enjoys a home-cooked meal.

Extra Comfort

If you are building your home, you would likely go without certain amenities, like appliances or large pieces of furniture. With furnished apartments, you do not have to wait for these larger and more costly pieces. Instead, you can concentrate on customizing the space to your own preferences by adding decorations, rearranging to fit your style.

Save on Furniture Cost

The money you save by not having to purchase new furniture is substantial. Premium beds, sofas, wall units and dining table will cost a pretty penny to buy yourself. With a furnished apartment, you get amazing quality furniture at no cost to you

No Need To Purchase Electronics

Furnished apartments come with washing machines, cookers, fridge and TV. Apartments like Bellcrest come with all the appliances that you would buy for your own house.

Gated Communities

Most of the furnished apartments are found in the affluent neighbourhoods close to all the social amenities you may need. They offer security and a great environment to live in or holiday at.

Buying vs Building which is better?

When the time comes to make a commitment on your housing future it boils down to two options buying or building. Building or buying is always a decision that gives many sleepless nights trying to decide which has more advantages or which option offers demerits that you are willing to live with.
We have compiled a list to give at least simplify your decision-making process.

Initial Cost
Building a home has a higher initial cost because of the added cost of purchasing the land before you start building as well as construction. Buying a home offers a fixed price that you know of from the get go making budgeting easier.

Personal Style
Advantage of building a new property is that you get to decide what you want in your property So you only pay for what you want. When buying you are forced to buy it as is inclusive of everything regardless of whether you wanted certain fixtures or not.

Maintenance
When you buy an older existing house it has usually gone through some wear and tear. The cost of fixing and replacing house fixtures may go higher than you expect. It also brings with it a high upkeep cost Building your own home guarantees all new house fixtures so there no replacements or fixing and very low maintenance cost.

Energy efficiency
New homes have all the latest energy management as well as new technologies that assist in giving you excellent energy efficiency. For example using of better solar panel technology that can run 70% of your house. Having energy conserving sockets, light fixtures and insulated windows just to name a few.
Buying a built home might find you having outdated housing materials that do not adhere to energy codes costing you more.

Appreciation
If you buy an existing home you are able to gauge the market value of the area prior to purchasing so you can evaluate your investment for the future.

When building a new property, it is always a gamble especially in a new area that is still developing. The area could flourish increasing the value of the property or the area could stay dormant making the value of your property stall.
The long and short of deciding between buying or building still comes down to personal preference, either custom housing or an already established neighbourhood, everyone falls on one side or the other… which is yours? Contact us if you are thinking of buying a house, we have the market knowledge and have the best recommendations to invest your savings wisely.

Why You Should Invest In Kitisuru, Nairobi, Kenya

Kitisuru is one of the fast-growing residential suburbs of Nairobi, the capital city and largest metropolitan area in Kenya. The area is rated as an upscale residential suburb just 10kms northwest of the CBD. If you are looking to live in a leafy suburb but close to most of the key amenities in Nairobi, then Kitisuru would be your ideal location.

Kitisuru host some of the most iconic, spectacular and lucrative developments that are ideal for a family setting. These are country homes with expansive grounds, secure and in gated communities.

Exclusive amenities

1. Restaurants

Kitisuru has some of the best restaurants in the area including, Tribe Hotel Osteria Restaurant, The Lord Erroll Gourmont Restaurant which are friendly and you can enjoy the best of local and international delicacies.

2. Business Friendly

Kitisuru hosts some of the key diplomatic missions like the United Nations Headquarters’ and the US embassy are nearby while local NGOs include The Noblesse Product and Autism Support Kenya Centre.

3. Recreation Centres

There are plenty of recreational activities you can enjoy such as visiting the cinemas, casino, shopping malls and clubs

4. Schools

Kitisuru has excellent schools in the area such as Hospital Hill High School, Rosslyn Academy, Montessori Primary School, Kirawa Road School, Potter House School and Kindergarten.

5. Shopping Centers

Village Market and The Gigiri Shopping Mall services the area, offering residents a grocery supermarket, cobbler, hardware and lifestyle stores.

6. Hospitals

Nairobi Hospital takes care of the residents in the area and The Physiotherapy Chiropractic Centre and St Peters Health Centre are also both close by.

7. Transportation

Kitisuru is serviced by well tarmacked roads and when it comes to transportation, there are taxi cabs and several bus stations that connect to other residential areas and the CBD can be reached in less than 10kms.

Some of the Key Properties to look out for in Kitisuru

KITISURU TERRACES FOR SALE

Kitisuru Terraces comprises of 4 & 5 bedroom townhouses of 300-380 sqm Respectively which are delightfully spacious with practical interior layouts.

The ground floor is introduced by an entrance porch with a lobby, guest cloakroom, guest bedroom, lounge with fireplace and dining area leading to a covered terrace opening to rear garden and barbeque area.

The kitchen is fitted with inbuilt high and low level cabinets, double sink unit, 6 burner gas/electric cooker with chimney, microwave, marble worktops and Breakfast area.

The staircase leads to the first floor with a relaxing family/ TV Lounge, 2 en suite Bedrooms and the large master bedroom with additional fireplace. Master bath has sleek sliding glass doors, dual vanities, and separate tub and shower.

Our high-end fittings comprise spacious walk-in wardrobes, special porcelain tiles on floors and quality ceramic tiles in the wet areas. Recessed ceilings with designer LED down lights add an ambient, twilight glow to the rooms Read more…

4 BEDROOM MAISONETTE TO LET IN NEW KITISURU

This is a lovely 4 bedroom Mansionette master en suite on a 0.25 acres of land at Kitisuru, Nairobi. It boasts of a spacious lounge, separate dining, large fitted kitchen, covered parking, perimeter wall and well-maintained gardens. Finishes include tiled floors and wooden stairs. Read more…

Other facilities include:

2 DSQ units ensuite with a kitchenette

2 parking spaces with shed

5 BEDROOM HOUSE TO LET IN OLD KITISURU

Desirable large family home for rent in quiet cul-de-sac in the prime location of Old Kitisuru, close to United Nations, Village Market and International Schools.

This substantial 2 storey detached house is situated on a half acre plot with landscaped gardens and covered parking for 3 cars.

The ground floor offers a large lounge with fireplace leading to the outside covered terrace, a dining room, large open plan kitchen with breakfast area, guest bedroom including en-suite, utility room and covered laundry area.

The first floor comprises 4 large double bedrooms, two with en-suite plus 2 family bathrooms. The master bedroom has a large L shaped terrace and the second bedroom has an adjoining terrace, both looking out over the green valley. A separate study has access to the large terrace.

The private grounds have large gardens, servants quarters for two including kitchenette and toilet and a covered terrace all with views across the green valley. The perimeter is secured including electric fence and the property benefits from an electronic security system. There is a large water tank and backup battery pack. The metal entrance gate leads to covered parking for 3 cars and further uncovered parking. The rental is unfurnished.

Viewing of this property is highly recommended in order to appreciate the value that this rental opportunity affords the potential tenant.

Why you should outsource property management.

Owning property has always been on the minds of many people at some point in their lives, becoming a landlord seems like a great idea with only positives and very few negatives.

The truth is that most of the new landlords come to find it’s a nightmare having to deal with rude tenants who were angels during their negotiations of the property, Unreliable handymen are also an issue because they are always inflating the cost of repairs, not showing up on time and are never within the agreed upon timetable for repairs.

You need not worry about such problems because the simple answer is a property management company. Here are some of the reasons why you need a property management company.

Tenant screening

One of the key responsibilities of a property management company is to screen all the tenants that apply to rent a property. They check whether the potential tenant has any legal matters following them as well as their credit score and tenancy history. This can save you a lot of hustle as well as any potential legal bindings.

Determine best rent rate

Knowing the value of the property in the market as well as the yearly rends is crucial. Property management companies ensure you are always within the correct rent bracket to guarantee you a competitive edge.

Property inspections

Understanding what to look for after a tenant leaves or before a tenant enters could save you a lot of money and time. Property management companies such as Homes universal have professional inspectors that carry out a thorough and in-depth investigation.

Evictions

One of the realities of leasing a property is that you may have to evict a tenant at one point or another. Its never an easy task and requires a delicate but professional approach. Which a property management company can handle for you .

Marketing property

Property management companies have a wide network that they use to market your property across multiple channels increasing your visibility as well as number of offers.

Rent collection

Property management companies ensure a consistent and reliable rent collection schedule so that you are able to collect hustle free and should there be any issues it is they who handle them.

Client List

Property management companies have a ready client list for any property because they screen all potential tenants looking for property. This ensures you get serious offers faster.

Property taxation

Property management company help you understand which deductions to claim, and organize the necessary forms and documentation to make those claims

Maintenance and repairs

Hiring a management company give you access to their in-house maintenance staff, systems, as well as their contractors who have already been vetted for good pricing and quality work.

Free up your time 

Property managers give you the freedom from having to be hands on running the day to day of your property. They handle all the heavy lifting and consult you only on issues that are critical and need your approval
Overall hiring a property management company offers a better experience in your property ownership journey.

Do you have a property you would like managed?  Call us for a presentation