With asking prices remaining elevated in many parts of Lagos, Abuja, and other major cities in 2026, many buyers are overpaying without realizing it. Learning how to spot overpriced properties can save you millions and help you negotiate better deals.
Here is an updated practical checklist to evaluate property pricing effectively.
How to Determine Fair Market Value
- Compare Recent Sold Prices (Comps) Look at similar properties (same size, location, condition) that sold in the last 3–6 months — not just asking prices.
- Calculate Price Per Square Meter Divide the asking price by the total built-up area. Compare with similar properties in the same estate or street.
- Factor in Location Premiums Properties near good roads, schools, and reliable power usually justify higher prices.
- Assess Condition & Age Newer properties or those with recent upgrades should cost more than older, unmaintained ones.
Red Flags That Indicate Overpricing
- Asking price significantly higher than recent sales in the same estate.
- Seller cannot provide recent comparable sales data.
- Property has been on the market for many months with multiple price drops.
- Unrealistic claims like “best deal in the area” without evidence.
- Pressure to buy quickly before “price increases tomorrow.”
Practical Valuation Checklist
- Request at least 5 recent comparable sales from the agent.
- Use online platforms (PropertyPro, NigeriaPropertyCentre, Jiji) for market data.
- Hire a professional valuer for properties above ₦100 million.
- Calculate potential rental yield — good properties should yield 8–14% net.
- Factor in future infrastructure plans that could increase value.
Smart Negotiation Strategies
- Start your offer 15–25% below asking price in most markets.
- Use data (comps and valuation) to support your offer.
- Ask for concessions (e.g., free solar installation, furnishing, or payment flexibility).
- Be willing to walk away if the price doesn’t make financial sense.
- Time your offer when the property has been listed for a while.
Final Thoughts
In 2026’s market, emotional buying and poor research are the fastest ways to overpay. Successful buyers take time to understand true market values, use data to negotiate, and never fall for pressure tactics.
Always remember: The right price is more important than the right timing. A slightly delayed purchase at a fair price is far better than a quick purchase at an inflated price.
Take your time, do proper research, and negotiate confidently. Your future bank account will thank you.
Have you ever realized you overpaid for a property? What lesson did you learn? Share in the comments to help other buyers.
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