In the bustling Nigerian real estate market, whether you’re buying your first home, leasing an office, or investing in a plot of land, the conversation almost always turns to one thing: negotiation. But what if we’ve been thinking about it all wrong?
True negotiation is far more than just haggling over the final price. It is a sophisticated skill that separates amateurs from professionals in securing sustainable agreements. For clients and professionals alike, understanding this distinction is key to success.
Focusing solely on the rental or sales price is a common mistake. Savvy negotiators know that the real value—and potential pitfalls—lie in the other terms of the transaction which are often captured in the question form:
Payment Terms: Can you pay in instalments? Is there a discount for upfront payment?
Timelines: When do you get the keys? Is the possession date flexible?
Future Costs: Who is responsible for maintenance, service charges, and repairs?
Flexibility: Does the lease allow for subletting? Are there options to renew or expand?
A real estate transaction tagged as a great deal is not just a cheap price; it’s the right combination of all these factors that protects your interests and investment.
So, how do the professionals do it? They focus on a few key principles:
They Prepare Meticulously: They don’t walk into a meeting empty-handed. They come armed with market data, comparable prices, and a clear understanding of their client’s ultimate goals.
They Listen More Than They Talk: The goal is not to shout the loudest but to understand the other party’s real needs. Is the seller in a hurry for cash? Does the landlord value a long-term, stable tenant over a high short-term rent? Uncovering these motivations is where deals are made.
They Create Value for Everyone: The best negotiations end with both sides feeling like they’ve won. This could mean offering a longer lease in exchange for lower rent, or a faster closing date for a slightly better price. It’s about being creative, not combative.
They Uphold Integrity: In a market sometimes clouded by mistrust, a professional’s greatest asset is their reputation. Transparency and honesty aren’t just ethical—they’re good for business and ensure the deal stands the test of time.
Let’s look at this scenario: The Lagos Office Lease
Consider this real example from Victoria Island in 2022: A landlord wanted a high rent with two years’ payment upfront. A multinational company wanted the space but didn’t want to lock up so much capital.
Instead of a deadlock on price, the estate surveyor negotiated a creative solution: a slightly lower rent with 18 months paid upfront, and a clause freezing the rent for three years. The landlord got a reputable tenant with solid upfront cash. The tenant secured a prime location with predictable costs and better cash flow. Everyone won.
In conclusion, the next time you approach a real estate deal, think beyond the price tag. Embrace negotiation as a strategic process aimed at creating a fair and sustainable agreement. By doing so, you don’t just get a better deal—you build a foundation of trust and professionalism that benefits the entire market.
Akinsanya Alade Mohammed and Osagie John Uyi are both estate surveyors and valuers. For comments and questions, contact alade@alanking1875.com and uyiosagie78@gmail.com
