A real estate consultant, Abdullateef Abioun Raji, has urged prospective property buyers to conduct thorough background checks, verify ownership documents and engage independent property lawyers before committing funds to real estate transactions.
Raji, Lead Consultant at Raji Oba Realty and Community Manager at BO Properties, gave the advice while speaking on the Ask the Expert segment of Trade FM’s Breakfast Business Briefing, where he discussed property investment, fraud prevention, financing options and the opportunities available to first-time buyers.
He warned that while trust is important in real estate transactions, it must not replace proper verification, stressing that buyers must take responsibility for protecting their investments.
“Trust opens the door for that transaction to happen. But trust should not make you leave proper verification, because proper verification will be the one that will protect your investment,” he said.
Raji advised buyers to investigate both the agent marketing a property and the developer behind the project before proceeding with a transaction.
“You have to do a background check on the person that is selling to you. You make research on the agent, and then you make research on the developing company,” he said.
He also recommended checking the relevant land registry, inspecting the property physically and making enquiries within the surrounding community to establish the property’s history and confirm the seller’s claims.
According to him, buyers should not rely solely on photographs, social media advertisements or assurances from agents, particularly when transactions are conducted virtually.
“Major deals or some deals do get closed through virtual channels, such as Instagram and other platforms. But you have to make sure that whoever you are dealing with schedules an inspection or a site visit,” he said.
Raji noted that repeated postponements of an agreed inspection could warrant caution, although he acknowledged that genuine emergencies might sometimes prevent an agent or seller from attending.
He further encouraged prospective buyers to speak with people living in the neighbourhood, explaining that local residents could provide useful information about the property and the people claiming ownership.
The consultant also stressed the importance of retaining an independent property lawyer to examine the relevant documents and provide professional guidance before a purchase is completed.
Buyers advised to define investment goals
On how first-time buyers can enter the property market, Raji said prospective investors should begin by saving, planning their finances and identifying the purpose of their investment.
He explained that property buyers generally have three major objectives: acquiring a home to live in, generating rental income or benefiting from future capital appreciation.
“For first-time buyers, they need to understand why they are buying it. Are they buying to live in that property? Are they buying to earn rental income or passive income? Or are they buying in order to enjoy future capital appreciation?” he asked.
He said identifying the purpose of an investment would help buyers choose suitable properties and locations while avoiding decisions that do not meet their needs.
For people purchasing homes for personal use, he advised considering their household size, lifestyle and affordability before selecting a location or property type.
Those interested in generating rental income, he said, could explore residential rentals, student accommodation and short-let apartments, depending on the property’s location and market demand.
Raji identified Yaba and Akoka in Lagos as areas where investors could consider student accommodation because of their proximity to educational institutions, including the University of Lagos and Yaba College of Technology.
He added that investors could also earn income by leasing commercial properties for shops and offices.
However, he cautioned that saving towards a property purchase and setting financial goals would not, on their own, guarantee a successful investment without adequate research and verification.
“You can set goals and, in the long run, still get duped. I can save my salary and plan towards buying a property, but if I don’t do the necessary research, I will still get duped,” he said.
Location, infrastructure key to property value
Raji identified location as one of the most important considerations for buyers seeking properties with genuine investment potential.
He advised investors to assess accessibility, road networks, infrastructure, proximity to employment centres and proposed developments before committing their money.
According to him, these factors can influence the attractiveness of a property to prospective tenants and buyers, as well as its potential for appreciation.
Using Yaba as an example, he said the area’s accessibility to other parts of Lagos, employment opportunities and infrastructure could make it attractive to people seeking residential or investment properties.
He nevertheless advised investors to assess individual properties and their surrounding areas rather than assume that every property in a popular location would necessarily deliver strong returns.
Structured payment plans offer alternative
On the financial challenges associated with property acquisition, Raji said prospective buyers who could not pay the full purchase price immediately might explore structured payment arrangements offered by some agents and developers.
He explained that some arrangements could allow buyers to spread payments over nine or 12 months, depending on the agreement and the seller’s terms.
“There are structured payment plans for you, even if you can’t pay everything at once. We have nine-month payment plans and as long as 12-month payment plans,” he said.
He added that buyers would need to demonstrate commitment and agree on a realistic payment schedule with the seller.
“If they see how committed you are, and you’ve made a dedication that at this particular date or on these days of the month you’ll be making your initial deposit, they may be willing to make it happen for you,” he said.
Raji, however, emphasised that prospective investors must remain disciplined, patient and financially prepared before entering the property market.
He also identified lease-based property arrangements as another option that could provide a lower entry point for some modest-income earners.
He explained that such arrangements grant buyers rights to use or occupy a property for a specified period, after which ownership or other rights are determined by the contractual terms.
He urged interested buyers to understand the duration, conditions and legal implications of a lease before making payment, rather than focusing solely on the initial cost.
Rental income, brokerage offer other opportunities
Beyond purchasing land and waiting for its value to appreciate, Raji said the real estate sector offered several opportunities for generating income.
He listed traditional residential rentals, short-let apartments and commercial property leasing among the options available to investors who own suitable properties.
He explained that the returns from rental properties could depend on factors such as occupancy and the performance of the property in its intended market.
Raji also encouraged people who could not afford to purchase property immediately to consider opportunities in property marketing and brokerage.
He said these roles could enable individuals to earn commissions by connecting buyers with property owners or developers without necessarily owning the properties themselves.
“Property marketing, just like me now, is marketing properties. I don’t own them, but I’m generating income,” he said.
Explaining brokerage, he added that practitioners could serve as intermediaries between property developers and prospective buyers and earn commissions from successful transactions.
Returns depend on type of investment
Addressing concerns about how quickly property investments generate returns, Raji cautioned that real estate should not be treated as a get-rich-quick scheme.
He said the period required to earn returns depended on the type of property acquired and the investment strategy adopted.
According to him, a completed property intended for rental purposes could begin generating income once it was occupied and the agreed rental or management arrangements took effect.
An off-plan investment, however, would generally require the buyer to wait for construction to be completed before the property could be used for its intended purpose.
Land investment, he added, could require a longer period before substantial appreciation was realised.
“If you invest in a completed project, in the next few weeks, months or so, you can start getting returns from it. But if you invest in an off-plan property, the building is still under construction, so you have to wait for a specific period until the project is completed,” he said.
“And if it’s land, land appreciates over time. For land, it will take years.”
He therefore advised investors to align their expectations with their financial goals and the nature of the property they intend to acquire.
Emotional decisions, poor research pose risks
Raji identified emotionally driven purchasing decisions as one of the common mistakes made by property buyers.
He said prospective investors should assess whether a property meets their objectives and financial capacity instead of allowing excitement or pressure to influence their decisions.
He added that buyers who failed to conduct proper research could expose themselves to fraud and investments that might not deliver the expected benefits.
The consultant noted that previous experiences of property fraud had also made some prospective buyers more cautious, creating additional challenges for legitimate real estate practitioners seeking to close transactions.
He urged buyers to combine financial planning with proper verification and professional legal advice to reduce the risk of making costly mistakes.
Agents urged to pursue continuous training
Speaking on the challenges facing real estate agents, Raji identified difficulties converting enquiries into completed sales, intense competition and growing buyer distrust as some of the major concerns in the sector.
He said agents needed to develop their professional knowledge and communication skills to earn clients’ confidence, particularly when dealing with buyers who were already familiar with the market.
“One of the challenges they face is getting enquiries and not being able to close sales. Converting enquiries to sales is one of the challenges. They also meet cautious buyers, probably because they’ve been duped before,” he said.
Raji encouraged practitioners to invest in continuous training, attend industry conferences and take advantage of free or paid learning opportunities to improve their knowledge.
According to him, the real estate market is constantly changing, making it necessary for practitioners to keep up with emerging trends, developers and investment opportunities.
“How will we be able to convince a client to buy from me or my brand if I’m not knowledgeable? If you are knowledgeable, you are pouring into that person, and the person can say, ‘This person knows what he is talking about,’” he said.
He added that professionalism, realistic sales targets and continuous development could help agents remain competitive in the market.
Diaspora investors urged to verify transactions
Raji also advised Nigerians living abroad who intend to acquire property in the country to carry out independent checks on agents, developers and their projects before transferring funds.
He recommended reviewing business and personal pages, seeking credible references and arranging for a trusted representative to inspect the property when the buyer could not travel.
He reiterated that an independent lawyer should be involved in the transaction to verify the documents and protect the buyer’s interests.
To illustrate the importance of verification, Raji recounted the experience of a colleague whose prospective client requested references from five notable people connected to the developer before proceeding with a transaction.
He said the colleague provided the requested references, enabling the client to proceed with the deal.
Raji noted that although some Nigerians abroad remained concerned about property fraud, many continued to invest in the country and often travelled home towards the end of the year to inspect properties and conclude transactions.
He urged them to begin their checks early and avoid allowing trust, personal recommendations or attractive offers to replace independent verification.
“Trust would open the door, but what would protect your investment and prevent you from being duped is proper verification,” he said.
He maintained that thorough research, physical inspection, document verification and professional legal assistance remained essential safeguards for anyone seeking to invest in Nigeria’s real estate sector.
