Buying Home In Kenya For First Time – Tips & Pitfalls To Avoid

First Time Home Buyer Kenya

Buying Home In Kenya For First Time – Tips & Pitfalls To Avoid

July 18, 2018 | By : Hayer One Marketing

Looking to buy a home in Kenya for the first time? After a long period of six months, you finally found your dream home. You are all set with the down payment to purchase your first home. But be warned, you never know when this dream turns into the biggest nightmare of your life you aren’t prepared for.

For most people, buying a home in Kenya is the biggest purchase of their lives so we strongly recommend not to make decision in a hurry. A large amount research would only justify your decision.

We have come up with the 7 potential pitfalls or home buying horror stories one must be aware of before buying a new home as well as few tips for home buyers in kenya you must follow to make your home buying experience go smoothly.

Buying Home In Kenya For First Time - Tips & Pitfalls To Avoid

👉 Failing to do due diligence

Many potential property buyers have burnt their fingers due to failure in performing due diligence. Most of them are buyers of homes. According to the buyers, an impatient seller may seek a buyer with ready money. But the ‘long’ legal processes haul on due to which the dream house they waited for.

Majority of prospective buyers trust the sellers who often say they have been forced to dispose of their property hurriedly to pay fees for children, settle hospital bills, repay a loan etc. Unfortunately, the innocent buyers pay for the property in cash rather than continuing with the whole legal actions and later on realize that they have become victims of fraudsters.

What to do:

As a promised buyer, your advocate must be vigilant to defend you against possible fraud. For instance, the lawyer must carry out an official title search of the property at the Ministry of Lands to ascertain the legal owner of the house.

The lawyer must examine the search certificate issued by the ministry. He should approve the sale agreement and prepare the transfer. Furthermore, the lawyer is also responsible for stamping the legal documents and forwarding them for registration as required.

It is also the duty of your lawyer to pay the purchase money to the advocate representing the seller of the property. and obtain the land rent certificate.

Obtain consent from the Land Control board, town clerk and trustees, public corporations and authorities where necessary.

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👉 Closing Nightmare

When the closing date of house purchase is approaching and you are out of cash, this is when the biggest dream turn to the biggest nightmare. This situation may fall you into forfeit your deposit and face a lawsuit.  A number of first-time buyers take house loans . Thinking pre-approval is enough is a big mistake. A pre-approval home loan is not necessarily a guaranteed sanction. Make sure you meet the lender requirements otherwise it might happen that the loan gets canceled.

Home Buyer Horror Stories Kenya - Buying home in kenya

👉 Unexpected Frights

Buying a home without inspection may lead to unexpected critical problems. It is definitely a terrifying risk to buy a home without inspection.There could be costly issues such as worn-out shingles, water seepage in the basement, dying furnace or water heaters, termite damage and asbestos in the insulation.

What to do?

Buying a home without inspection is like putting your whole investment at risk. Are you really interested to do so? Therefore, before making an offer, examine the house with a knowledgeable person.

Some sellers show pre-existing inspection reports in order to gain the trust of buyers but being a wise buyer, make sure that the reports are from a reputable home inspector. You can also consult the neighbors for any type of repair or reconstruction.

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👉 You Get What You Pay For:

One of the funniest nightmare we hear about was –

A couple reported that they bought a house and at the time of moving in, the seller took the even toilets out. It might seem too funny to believe but this is a bitter truth of property business that you can’t trust everybody without facts. Some sellers are very polite whereas others are very clever.

What to do?

Make sure while dealing for the house, you clarify the things, items, furnishings or furniture you will be expecting to get along with the property you paid for.  Include everything in the fixtures and chattels clause.

👉 Castles of doom

Don’t get fooled by the affordability displayed by an online calculator to buy a home.  As a general rule, the total monthly housing cost should not be more than 32% of gross household monthly income.

Maximizing your borrowing limit may fall you into financial crisis. What if you purchase a property on lease in a hurry and later on you can’t afford to manage the expenses. The only solution in such a circumstance would be selling the home again.

What to do?

Therefore, it is very important to create budget thinking the total amount you would be left over of your pay cheque every month to live the life you want to live.

Also, consider the ramifications of rates rising in the future.

Make sure you have sufficient funds for emergency events , for instance -sudden job loss, accident or medical needs.

Finally, before you dive in, get some professional help and advice from a real estate property developer in Kenya.

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Finally a few tips for first time home buyers in kenya. Your real estate agent will help you decide how much money you want to offer for the house along with any conditions you want to ask for, like having the buyer pay for your closing costs.