Category: Tips Advice

Once you have made up your mind on investing in real estate industry, you may need a guide. As easy as it seems to invest in real estate, selection of a good agent is the basic. Buying and selling of property may be easier for a person who has done it before. A person who needs to venture into that business for the first time may need to select a real estate agent to ease the process and for the purposes of introduction to the market. Whether you are buying or selling the property, such agents will help in guiding you over some essentials such as; buying and building a house, the pro and cons of each method, property inspections while at the same time taking you through valuation of properties. Here are some of the few things you need to look out for when selecting a real estate agent in Kenya.

A knowledgeable real estate agent

While selecting a real estate agent, it is always advisable to go for the agent who has a vast knowledge on real estate. If you are selling property, selecting an agent who knows the market well would be the best. It may help you have a fair pricing and not lose customers. The same way it may work when buying properties as it helps you reduce chances of overpayments.

References

Real estate business is mostly about relationships you create with your clients as well as fellow agents, if you happen to be an agent. When selecting a real estate agent, millionaires.com highlights that it is necessary if an agent had a number of clients that they can refer to, in order to prove of their satisfactory work done before. You may also want to view referencing as a way you ask friends and family of their previous experiences and sometimes may use their agents based on how they worked with them in the process of buying and selling of property

Terms and conditions of a contract

If you want to succeed in real estate business, then contracts are a way to go by. Before buying or selling that property,  it is better if you understood how the agent works as well as the agent understanding how you need to work out things on your end. A contract will define on appropriate fees you pay them as well as duration they may be working with you. You get to decide what if the real estate agent is suitable for you.

Connection

Choose a real estate agent who has a connection with you. When selecting a real estate agent, chemistry is the key. If you disagree from the start, then the whole business won’t work out. The connection you create with your real estate agent matters. Again, you may want to choose a real estate agent who will work according to your schedule and has a solid plan. Make sure that the real estate agent will be available when you need them. There is nothing that frustrates business than a partner who is not pro active. Your real estate agent should be viewed more as a partner in business.

Trust

During the process of searching and getting to select a real estate agent, trust is very key. Interestingly, you can rule this out by how the real estate agent asks you questions and how they answer you back. Trust goes with passion as well as honesty. If the real estate agent shows some elements of red flags, rule out such to avoid complications when it gets to business.

Conclusion

As you select your real estate agent, know that there are many real estate agents out there. Each of them is a person based on their own knowledge, skills and personality. They have their own strengths and weaknesses.  Take time to choose your preferred real estate agent. You can also have a look at our recommended real estate agent on our website listing https://www.property254.co.ke/

There are so many businesses that one can he dodge into when need to start up a business arises. Real estate investment is viewed as one of the investments that you can never go wrong on. It has been existing overtime and it’s one of the businesses with massive profits and huge opportunities if well taken care of. The industry consists of different areas or categories that you can invest on, that is; residential category, commercial category, retail category, industrial category and a mixed use of all of the above. Due to these various categories of real estate investments, this creates a niche and various gaps of opportunities. This article is therefore going to help you know why real estate investments is one of the greatest industry that you can invest in. According to the survey by Kenya National Bureau of statistics, it shows that real estate investments rose by 1.2% between 2018 and 2019 financial year. Here are some of the reasons why investing in real estate industry is one of the best ideas.

 High profit margins

According to Cytonn, this sector has out done other asset sectors. In the last five years, part of this industry such as serviced offices contributing up to 12.3% per annum. Real estate investment generates profits in different ways such as money from rent outs, money from flipping, money from industrial use as well as money from lease. The rate of profits generated in this sector are high end and that is why the whole industry consequently has high capital investments. Cytonn also states that between 2019 and 2020, average rental and commercial yields, marginally rose from 5.0% and 7.5% to 5.2% and 7.8% respectively.

Acquire wealth

Investing in real estate can be a means to acquire wealth. The property involved in real estate industry, appreciates in value and is a means of storage of wealth. The property can also be used to acquire loans as they can be attached as security to such loans.

Guide Investors on inflation

Real estate investments A very low chance of variance. Inflation erodes the wealth of investors and they’re very keen to protect that. Of the ways in which investors guard their businesses, its by protecting the investment against negative effects of inflation. Real estate investments act as a shield for negative effects of inflation. The value of the assets grows in the same rate of inflation or either at the higher rates.

Conclusion,

Real estate investment is one of the ways to accumulate wealth. Investing in this industry, has to be one of the best ways to use the money. It ensures safety to your money, it protects you against inflation as well as having high return of profits. Although it may require huge capital, the returns are equally huge. It is an industry that has been existing, and over the years the value increases.

Real estate is becoming a very competitive field. You need to find a way to list properties available for sale. Beyond listing your land and houses for sale, buyers and sellers are expecting a lot more.  To succeed as a real estate agent, you need to have something extra.

Several skills can give you an edge and help you make more sales. These skills will also set you apart from the competition.

Let’s read together based on my experience in the industry and what I have found to be important. You will also note that most of these skills are important in other industries as well. So, if you are not in real estate, you find these useful as well. Let’s get started!

1.     Local area knowledge

Every real estate agent needs to have adequate knowledge of the area within which they are selling land or houses. If you know your locality, customers will learn to trust and depend on you for guidance. You will need to understand real estate regulations in Kenya. You also need to know of upcoming developments and other real estate agents in your area.

Real estate buyers prefer working with a real estate agent who is knowledgeable. This is because they are about to make one of the biggest decisions of their life. Customers are also about to commit a lot of money.

2.     High Integrity and Trust levels.

Honesty remains one of the best skills to have as a real estate agent. Customers also expect you to show you can be trusted and honest. Thus, real estate customers rely on referrals from friends and family. Being dishonest, unethical and immoral can tarnish a career fast, and for good.

If you have a bad reputation, no real estate buyer will work with you. Reputation matters a lot in real estate. You need to maintain a good client base who can provide evidence of recent successful deals.

3.     Technological skills

Technology advances every day. Therefore, you need to leverage technology to your advantage by being technological savvy.

As a real estate agent, you need to understand how to use social media to sell real estate. From posting to WhatsApp groups and Facebook or showcasing your real estate on Instagram. You can take things to the next level by having a website.

How to use Google Maps to sell more as a real estate Agent

If you do not have a website, then you do not need to worry. Various listing websites are available with some being available for free.

4.     Resilience

Real estate is a tough field. On average, most real estate agents complete a few sales within the year. If you are not resilient, you will not manage to stay long in the field. As an agent, following up on leads requires constant calling and checking on your leads before they convert. Following up on every lead is crucial in achieving success in real estate.

You will need to have a way to keep track of leads.  Having a notebook is a good starting place. Else, invest in an automated system.

Successful real estate agents do not wait for clients to call them. They keep a check on all appointments, meetings and showings themselves. They are also flexible and will adjust their schedule if the client requests.

5.     Passion

To succeed in anything, you need to have passion. Real estate is no exception.

For real estate agents, passion involves enjoying speaking and taking clients to site visits. You also need passion to help people. This is because you will need to support clients make decisions that are best for them.

6.     Teamwork and networking

In real estate, your network is your net worth. If you work alone, you will find customers hard to come by. Referrals remain the way most agents find business. If you do not have a large network, then you will sell less and be unable to find success. Teamwork involves you also providing other real estate agents with referrals and leads.

Networking Tips for Real Estate Agents in Kenya.

For any career, building your network and reputation is important for success. If you’re a local agent serving a small market, getting involved with the community can be a great way to build your brand. By engaging with the community, you can become the go-to estate agents in the area.

7.     Negotiation skills

Most buyers start their real estate journey online. With a lot of information being available online, buyers have more information than before. With a more knowledgeable client, negotiation skills are becoming important for real estate agents.

The crucial lesson to remember about negotiating is that your goal is not to win but to get a deal done. To do that, you will have to come up with a solution that will satisfy both the buyer and the seller.

8.     communication skills

People prefer to work with people they get along with and like. Buying and selling properties is no different. To have a good rapport with real estate buyers, you then need to have good communication skills.

Good communication skills help to create a good relationship with customers. It also helps to enhance your level of professionalism. You need to be available on most communication channels like email, Skype, WhatsApp, or text messages. You should also be quick at replying to your client’s messages.

You don’t only communicate with the buyer but also the seller during negotiation. In some cases, you’ll need to communicate with your colleagues. Other real estate agents will give you advice or guidance as you grow in the business.

9.     Great marketing skills.

The real estate market is becoming more competitive. More real estate agents are joining the industry. To sell land or houses, you need to have great marketing skills.  With the right marketing strategy, you can get more clients and referrals that will help you grow your business.

Here is a more detailed article on top 9 strategies to earn more as a real estate agent.

10.  Familiarity with Rules and Regulations

A real estate agent understands how rules and regulations apply to real estate. In Kenya, you need to understand the Estate Agents Act, The Land Act, Rent Restriction Act and tax matters as well. You need to understand how these affects real estate.

Process of buying property in Kenya

As a real estate agent, you must guide your customers in navigating through all the regulations and not mislead them in any way. Most homeowners are unaware of real estate laws when they buy or sell a house. They depend on a real estate agent to guide them through this complicated process.

There are many skills a real estate agent should have. The above skills are the core skills that will make a successful real estate agent. The effective implementation of these skills will help you have a great and rewarding real estate career. These skills are important whether you’re starting out or already a professional.

Real estate agents understand the laws related to property transactions and are relied upon during the process of buying or selling properties. As the agents are not the owners of the properties, they need permission to act as an agent for the property owner or buyer.

An authorization letter is a document that gives someone else the authority to conduct business, carry out transactions on behalf of someone else.

 Buyers and sellers should provide real estate agents with letters that authorize the real estate agent to act on their behalf. Property Authorization letters need to be written carefully to prevent any miscommunications. While sourcing letters should be provided by the principal, you can assist them by preparing one for them to sign. Below is a guide to prepare a sourcing letter.

Related: Letter of Authorization to sell real estate.

Start with Personal Information

Type your full name and contact information, including your email address, left justified with one information item per line. Type the full name and contact information for the customer as well.

Ensure there is a date on the letter.

State Your Intention

After you have identified the parties, identify the intention. This is done by having this as the subject line and have this in bold or underlined.  

Detail the Permissions

List the specific tasks for which you are responsible for using bullet points or numbers to separate each item visually.  Go into as much detail as necessary to make the scope or specific limitations of the tasks clear. For instance, don’t state a term like source for a house in Kitengela instead, be specific like source for a 3-bedroom house all ensuite, with a detached SQ, within 1 kilometer of a tarmac road and at most 3 kilometers from Kitengela, priced between 14M to 15M inclusive of stamp duty and all transfer costs.

Remember to mention the duration of the authorized duty and the reason should be devoid of any misinterpretations.

Create a Closing

Close with official words such as “Sincerely,” and type your client’s full name. Try to keep your the letter short, precise and to the point while ensuring no detail was left out

Finish with a Signature

Present the letter to your client for review, ensure its signed and make a copy for your records.

Also Read: Commissions to charge for real estate transactions in Kenya.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Example:

To,

John Doe

P.O. Box 1234

Nairobi

Tel 0123456789

From

Jane Doe

P.O. Box 4321

Nairobi

Tel 987654321

Date: 12th of May 2022

Subject: Authorization to source property

Dear John,

This letter is in regards to request to source for property that fits this description {…………………………………….}. We estimate that the price range for such property shall be within a budget of {……………………………………….}.

Your role shall include:

1……………………………………………

2…………………………………………….

While your role relates to finding the appropriate property(ies) as detailed above, due diligence shall be done by my legal team on such properties as shall be provided by you.

In case a property sourced by you meets my expectations and those of my partners, we shall pay you a commission of ……………………….. payable as {…………………………………}.

This authorization is to you and is not assignable to any other party without my express approval in writing. This authorization is valid from the day of signature and shall last for a period of {……………………………………………….}.

For any further clarification you can call me on my mobile number 123456789 or email me on [email protected]

Yours Sincerely,

Jane Doe

There are most common reason why a property fails to sell faster and these comes from common mistakes made by real estate agents. See 5 common pitfalls to avoid.

1.       Avoid using bad photos

Your potential buyers are utilizing the internet to look for properties to purchase. The first impression is what matters most. It doesn’t matter how many channels you are advertising your properties from, if you use low quality photos you will scare off potential buyers. The photos and the videos you use to showcase your properties should be present to the eye. Potential buyers will only go to physically view the property if the photos used have an aesthetic appeal.  It’s advisable to look for a professional photographer who will take high quality photos from all angels.  Your pricing too is reflected by the kind of photos or video you have used.

2.       Not having a good property description

Good photos must be followed by relevant information about your property. Write that catchy property description that wills leave your potential buyers wanting. Good property description will help you sell your property faster. If the description is not good enough it will not grab the attention of the potential buyers. Make sure you have a compelling headline. Make it short but sweet. Talk about the features of your property. Talk about the entire neighborhood and all the amenities around the property. Make sure you see how to write attention grabbing property description if you want to stand out as a real estate agent. On your property description avoid typos and grammatical errors or any other detail that may mislead potential buyers.

3.       Overpricing

The price of a property is one of the key things that a buyer will look at. If you have set a high price for your properties you will turn off the potential buyers. Before setting your price, do a proper research on market prices in the neighborhood. See both the paste and the current sales of the property. Your selling price should be determined by the current market and not what you think it’s worth or how much money you need at the moment. Let all potential buyers be in your market range. Learn how to rice your home for sale.

4.       Not advertising at all

When it comes to selling, your properties should be exposed to everyone who may be interested in it. It is advertising that makes sales happens. Technology has made it possible for anyone to have presence online through free social media channels. Facebook, Instagram, LinkedIn, twitter and Pintrest allows you to target certain buyers and promote you listings to them. It’s the best strategy to target the millennial who are obsessed with the internet and they are the current potential buyers. These platforms also allow us to interact with your prospective buyers and facilitate two-way communication with them. Social media advertisement should be one of the strategies that every real estate agent should have alongside other strategies like print media and use of listing platforms in Kenya. By all means make sure your properties are online.

If you can’t afford to get one, the next best solution is to use a reputable listing company that will get

5. Poor presentation

Sometimes poor presentation of properties can turn off the buyers. How you present your properties can determine what price the property finally gets sold at. It’s all about making your property stand out. For a house, give enough attention to how your property look from outside.  Clean the driveways clear all the bushes, remove weeds. It’s also important to make sure that your house is properly maintained, well furnished, well organized, painted (in neutral colors) make sure there is proper lighting etc. These are minor details that can impress potential buyers. In case of a land, make sure the grass is not to long and that there is no rubbish scattered across the land. You can consider. Do the best you can to make sure you have an opportunity for sale. See also common presentation mistakes to avoid

Summary

If you want  to attract more buyers , you must use the best approach. Avoid making petty mistakes that turn the potential buyers away.

Real estate is one of the most preferred methods of investing because not only does it provide good returns, but it also cushions one from inflation. However, real estate investment is very capital intensive. As the old saying goes, it takes money to make money and finding the right sources of finance is important.

This post provides ideas to get your business fired up and ready to go.

1.     Use employment Income.

If you are formally employed, don’t quit straight away to start your business. Use the income you’re your current job to help get your real estate business off the ground. You then start your real estate business as a side hustle as you build up savings to start off your new venture. By working part time in real estate, you maintain an income to keep you going as you learn and start growing your career in real estate. You can market your properties on the side.

2.     Tap into your savings

Tapping your savings is the easiest way to start off. It may take longer to save enough money to get started, but the upside is that you enjoy all the profits. You can use your savings to buy a property and put it up for sale. This may be land for sale where you buy a single plot and divide it or buy a bigger piece of land and subdivide the same.

3.     Sell Properties to raise capital.

If you already have assets that you can sell such as vehicles, shares in the stock market, or other pieces of land, then this could be a funding source for your real estate career. If you have been saving for retirement, you can withdraw some funds up to 50% from pensions. However, draining your retirement account is typically a bad idea because it jeopardizes your future financial security in case the real estate business doesn’t succeed.

Important: How to use Google Maps to sell more as a real estate agent.

4.     Take a loan from friends or family

Many small business owners get started by taking funding from friends or family who can give you a loan. While they may offer flexible repayment terms or a low-interest rate, this option comes with risks if it jeopardizes your relationship.

Carefully consider what would happen if your real estate venture fails or it takes you much longer than expected to repay the loan. It’s essential to document the terms of a loan from family or friends, so there aren’t any misunderstandings later.

5.     Get a business line of credit

A business line of credit from a bank or credit union allows you to tap funds up to a limit when you need them for your business. As you repay amounts withdrawn plus interest, your credit line increases to the original amount, which you can continue to use.

6.     Borrow From the bank.

The above options have been using relatively cost-free money. If you don’t have any savings or assets to fund your real estate business, another option is to borrow from the bank. Many banks offer business loans to start or expand your venture. The major hindrance to financing of property development by banks has been high interest rates.

Related: How Premier Agent helps you succeed as a real estate agent in Kenya

7.     Get a partner/joint ventures.

Pooling of resources is usually done by individual investors with common investment goals mainly in real estate. The resource pooling creates greater purchasing power thus more diverse and rewarding investment opportunities through simple economy of scale.  Finding a partner to team up with is always a good way to start. Beyond providing financing, the partners may also offer services, expertise or a network that would boost your success.  

8.     Joint ventures with capital investors

Joint ventures are arrangements where parties pool their resources together. Normally, real estate joint ventures combine the real estate development expertise and financing capability of a developer with a landowner’s contribution in the form of land.

 With real estate in Kenya having some of the highest returns, this method of financing is quickly gaining traction. The land owner and the capital investors usually form a company specifically for the project with agreed terms on how the profits from the project will be shared. The firm owner transfers the land to the project company while the investors provide funds for the construction of the project.

9.     Presales

This is where you prepare a show house and then request buyers to make payment before completion of the project. The revenues obtained from buyers reduce the capital that is needed to fund the project.

10.  Government funding opportunities

The government is usually the largest player in every industry. To support various initiatives, funds have been set aside through various bodies like the Youth Enterprise Development Fund, Uwezo Fund, Women Enterprise Fund, Kenya Industrial Estate, Industrial Development Fund, Agriculture Finance Corporation and the ICDC. Visit their websites and/or offices for more information on eligibility and process.

Conclusion

As you can see from the above there are various real estate financing options get you started in real estate. How you fund a specific deal greatly affects the rate of return. Understanding the financial aspect is therefore crucial. Remember, every investment option of real estate financing has its own set of pros and cons, and the financing approach greatly depends upon type of the property and the situation.

Going for a site visit is not enough. There is a way you should treat your potential clients. If you want to turn your potential client to a client, you must develop a relationship with them. Here are some fundamentals

1.       Trustworthiness

Trust is earned by demonstrating your honesty and integrity. If you lose it it’s gone forever and that means you will your customer’s confidence. The very first thing in the buying process is winning trust of your potential buyers. A buyer who trusts you is more likely to close a deal with you but they must trust you at every stage. They don’t want to be enticed by your profile then feel blindsided by changes to mortgages, financing and may be housing regulations. If you lose your chance once, you can hardly get a second one. Make sure you are truthful during your first meet up and in the whole real estate process. This will help you to build your brand’s reputation. See ways of becoming a trusted real estate profession

2.       Consistent communication

Communication takes the lead in most things that you do as a real estate agent. It’s beyond just saying a couple to things to convince a buyer. What buyers want is a consistent communication. When we talk of a consistent communication, we don’t mean automated communication but a communication that gives your clients a human touch. It’s about relating necessary information about the buying process to a first time home buyer to negotiating and closing the deal.  It’s important to determine your client’s preferred method of communication and frequency. Some want a regular phone call, others prefer emails while others prefer a text. Use that to your advantage. That’s not enough, you should move from talking to listening to you. Listening makes your customers feel like you are connected and understand their feelings. It’s actually a communication skill. Learn communication skills that you should acquire as a real estate agent.

3.       A knowledgeable agent

If you want to be successful in real estate industry you must be an expert in real estate advice. They expect you to explain what they need to know and why, before they need it. Your clients don’t know much about real estate. They expect you to give answers to all there. Whether the require a home inspection, how earnest money works, what is a mortgage and how does it work, what is your list-to-price ratio among other questions. They will want to know about the neighborhood, about the areas amenities and no matter the question you should have an answer. Simply have an ability to take away all their confusion

4.       An agent who Stick to schedule

One of the areas where your clients are unforgiving is when you waste their time. That client is in waiting and you must acknowledge that. It gets back to communication. If you are going to be late, call the customer. If you can’t deliver a product on time, let them know. If you’ve got no news, call them to let them know you’ve got no news. Serve your customers in a way that they will feel your respect for their time. It is essential to set up an effective scheduling system for your client. Coordinate appointments in a way that you will not manage all of them. If you are that forgetful person looks for an online service that will help you in appointment scheduling for both you and your clients. When proposing appointment times, offer 2-3 options your potential customers are likely to be happy with, especially if the meeting involves more than one participant. With this you will have earned a good reputation more customers will seek you out.

Expert Tips on How to Land Your First Real Estate Client

5.       Quick response

How quickly you response to your customers really matters not only in real estate industries but also in all business industries. The faster you’re able to respond to your leads, the more likely you can send them further down your sales funnel to convert. It actually makes your potential clients feel important. When you don’t responds quickly to your customers they will definitely stop doing business with you.

Statistics show that businesses who respond to leads in five minutes or less are more likely to connect and convert opportunities. Learn more on lead response time and how to calculate leads response time

Conclusion

If your clients are tough you have to go an extra mile. Strike the right balance between professionalism and friendliness. Don’t step out of their limits. If they are not interested in the said property, suggest alternatives to them. See also tips to handle difficult clients in real estate

As realtors, our relationships with people are the foundation of our business. Relationships lead to referrals, which make our businesses sustainable. A personal relationship is just that, personal. It’s about keeping relationship alive through phone calls, texts for birthday wishes, grabbing coffee during a weekend, emails. It is vitally important to focus on the relationship you have with each client. Here are 4 common mistakes real estate agents make with personal relationship.

1.       Failure to personalize your communication

Personalized communication is one of the keys to a successful business.  In a world where everyone is bombarded with information and correspondence, as areal estate agent your need a way to stay relevant to your customers without causing an interruption. Do a personalized email and customized messages that is relatable to the customer. A happy and satisfied customer will not only repurchase from you, but will also market your product to their friends and family, ultimately benefiting your business. Be an asset to your clients.  Learn how to personalize your real estate  communication

2.       Neglecting to Follow Up with Current/Future Clients

Research from the National Association of Realtors reports that 89 percent of consumers say they’d use the same agent again, but in reality only 11 percent of those consumers actually use the same agent again.  This is usually because the agent failed to maintain a relationship after the completion of the sale.

Most successful realtors keep in touch with past clients via client parties, community events, holiday gatherings and mailings. You can personally contact past clients on important dates such as birthdays and anniversaries. These are happy days for clients and also an opportunity to advice, update and counsel. The cost of keeping a new client is significantly lower than the cost of acquiring a new one.   Also following up with potential clients is the number one skill that real estate agents need to master to build their client roster and grow their business. The best way to avoid follow up issues is simple stay in contact with all potential customers. Nurture your potentials for some time before their transaction gets ready

3.       Being too pushy

Every buyer wants to deal with a real estate agent who can walk them through the process with confidence without being pushy.  Pushy agents often scare customers away. As an agent you should strive to advice your clients rather than pressuring them and making them ether run away or buying a house that doesn’t fit their needs or for a higher price than necessary. Whenever you deal with an unsure client, you should remain patient and wait for them to come to terms with any decision they want to make.  Remember the ultimate goal is to build relationship with your clients.

4.       Not being proactive enough

A proactive agent is the professional that shows a proactive attitude most of the times and in all the circumstances. A proactive agent has ability to not only taking good care of sellers but also assisting new clients .One way of becoming proactive is through social media.  Social media monitoring gives you an opportunity to identify, track and respond to ongoing conversations about your company and properties and through this you develop relationship with potential customers. Whenever your agents identify an opportunity, they should reach out, make a connection, and share helpful information. In this manner, they can build up a trustworthy image and attract more clients along the way. See how to become a proactive real estate agent

Summary

It is important to focus on the relationship you have with each client for you to strengthen your relationships with your clients. This helps you create  clients for life  and referrals from clients who trust you and have total confidence in you, and you will create more business than you ever knew existed.

Investing in Kenyan land can be a great way to secure your financial future. With some research and careful planning, you can make a wise investment that will give you a lucrative return. However, you should conduct a land appraisal to ensure you get the best value for your money.If you are thinking about investing in Kenyan land, it is essential to have a good understanding of the appraisal process. Appraisers will consider many factors when determining the value of a piece of land, including its location, size, and potential uses. The appraiser will also look at recent sales of similar properties in the area to get an idea of the current market value.Kenya is known for its stunning landscapes, unique wildlife, and friendly people. Kenya is also a great place to invest in land. With its rapidly growing economy and population, the Kenyan land market has much profit potential.This post explains the different steps involved in the process, from the initial assessment of the land to the final valuation. It also includes information on the various methods of land appraisal and the factors that need to be considered when appraising land.

What is Land Appraisal?

A land appraisal is a process of estimating the value of the land. An assessment can be done for various reasons, such as for taxation or selling purposes. The appraiser will consider multiple factors, such as the land’s location, size, and condition, to conclude the actual value of the land.

Methods of Land Appraisal in Kenya

We have three methods of land appraisal in Kenya:

1. Cost Approach

The cost approach of land appraisal in Kenya involves considering the costs involved in development. For instance, if the land has boreholes and agricultural activities, the costs of setting up the borehole and planting the crops is factored in deciding the lands value.

2. Market Approach

This approach involves comparing nearby lands that have similar characteristics as the land in question. In addition, the values should be matching with the area’s current market value of lands.

3. Income Approach

This appraisal approach involves using the current income from the land to decide its value. For instance, if the land is on a lease, the income generated from the lease is used to determine the real value of the land.

The Process of Land Appraisal in Kenya

Land appraisal in Kenya is the process of determining the value of land for taxation or sale. The process is carried out by the Kenya Revenue Authority (KRA) in collaboration with the Ministry of Lands.

The land parcel identification in question

The first step in land appraisal is knowing the land owner. Nowadays, you can search for the title deed authenticity on the eCitizen portal on the ministry of lands dashboard.

A physical inspection of the land by a team of appraisers

The appraisers take into account several factors, including the size of the land, its location, its accessibility, and its potential for development. The appraisers should move into the physical location of the land and study the area around it. In addition, they also research the previous sales of neighbouring lands.

Report preparation

After the physical inspection, the appraisers prepare a report which is submitted to the KRA. The KRA then determines the value of the land based on the information. The value of the land is then used to calculate the amount of tax that is payable.

If the purpose of the appraisal was to sell the property, the seller now has a solid reason to set their price tag.

The Benefits of Land Appraisal in Kenya

Determine the value of land

Appraisals can be used for tax purposes

Determine the value of land for sale or lease or assess the value of land for collateral purposes

The land appraisal helps identify potential environmental hazards on the land.

The Challenges of Land Appraisal in Kenya

These factors can include the location of the land.

The size of the land. If the land is too big, it will be difficult to move around.

The type of land. The topography can also be challenging if the land is hilly or very steep.

The current market value of land in Kenya can fluctuate, making it difficult to determine an accurate appraisal.

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The Bottom Line

Land appraisal in Kenya is a process that requires a lot of time, effort, and resources. However, it is also clear that the benefits of carrying out a land appraisal far outweigh the costs.

A land appraisal provides essential information that can be used to make informed decisions about the future use and development of land. In addition, a land appraisal can help resolve disputes and improve the overall efficiency of land management.

Frequently Asked Questions

How long does land valuation take in Kenya?

After submitting a request for land appraisal, it can take a few days, depending on the location of the land.

What do land valuers do?

Land evaluators provide useful information regarding land value to KRA, Banks, land sellers, and buyers.

What do land appraisers look to provide land value in Kenya?

Land appraisers consider factors like the land’s topography, location, size, nearby amenities, and the possible developments of the land. That helps them derive a figure of the land’s value.

Building your dream home in Kenya is a great way to get the most out of your money and have a beautiful, comfortable place to call your home. Kenya is a lovely country with a lot to offer, and if you are looking for a place to build your dream home, it is worth considering. There are a few things to remember when you are planning on building your dream home in Kenya, but if you take your time and research, you will find the perfect spot to build your dream house.

Factors to Consider When Building Your Dream Home in Kenya

• You should have a clear idea of the preferred features of your dream home.
• What is your preferred location?
• Do you have enough money to buy land and build your dream home?
• Can you access a good architect or builder?

After considering those factors, it’s time to turn your dream home into a reality. Let’s get to the process of building your dream home in Kenya. 

9 Steps to Make Your Dream Home in Kenya a Reality

1. Define your budget

The first step to building your dream home is to define your budget. How much can you realistically afford to spend on your home? Drafting a budget can be tricky, as there are so many factors to consider. You should consider the cost of land, materials, labor, and permits. 

One way to keep your costs down is to buy land in an affordable area. You should also source materials from local manufacturers, which can be much cheaper than importing them elsewhere. In addition, get multiple quotes from different contractors before you commit to any work. 

2. Find a lender to fund your dream home building in Kenya

The lender should be familiar with the Kenyan market and understand the construction process well. You can talk to a local bank to get enough funds to build your house.

You can ask the lender whether they can provide the necessary financing after the construction is complete. More financing is vital to make your dream home a reality.

3. Be flexible & manage expectations

One of the most critical aspects of this process is being flexible and managing expectations. Many factors can affect the building process, and it is crucial to get ready for them.

Murphy’s law states that anything that can go wrong will go wrong. The law is actionable when building a house. There will be delays, mistakes, and changes along the way. Therefore it is essential to be flexible to accommodate these changes.

It is also essential to manage expectations. The reality is that your dream home may turn out differently than you imagined it. There may be budget constraints, or you may need to compromise to get the home you want. It is essential to be realistic about what you can achieve and open to changing your plans.

4. Choose the right location

The location of your home is as important as the home itself. When choosing a site, consider factors such as the climate, the surrounding community, and the amenities that are important to you.

When buying a plot, it is vital to find the right one that suits your needs. Research and ask around before making a purchase decision. You can talk to real estate agents, friends, and family to get their opinion on the best plot for you.

You should do a title deed search to ensure you buy legitimate land without a thread of court sessions in the future.

5. Assemble a construction team

You should assemble a construction team that will bring your vision to life. The first step is finding a reputable, experienced contractor to oversee the project. Once you have found a contractor, they can help you select the rest of the team, including an architect, engineers, and other construction professionals.

It is essential to take your time selecting your team members, as they will ensure that your home meets your specifications. Ensure to interview each team member and get a sense of their experience and expertise.

Once you have assembled your team, it is vital to establish clear lines of communication and expectations. A good construction team can help you get good designs for your dream home.

6. Decide on architectural design

6. 

When building your dream home, one of the first things you need to do is decide on an architectural design. Designs can be daunting, especially if you’re unsure where to start.

There are a few things you need to consider in a design, such as the climate, location, and plot size. For example, if you’re building in a hot climate, consider a design that includes a pool.

Once you’ve considered all of these factors, you can start looking at different designs. There are a lot of great resources available online, or you can hire an architect to help you out.

Once you’ve found a design you like, think about the materials you’ll use, the layout of the rooms, and the finishes. This stage is where it can help to have an architect or designer on your team, as they’ll be able to help you make all the right choices.

7. Be involved in the construction process

Building your dream home in Kenya is exciting but can also be a bit overwhelming. You should make a lot of decisions, and ensure that everything is right.

This doesn’t mean that you need to be on-site every day or that you need to be an expert in construction. But it does mean keeping tabs on the progress of the build, attending site meetings, and being available to answer any questions that the contractor may have.

Being involved in the construction process allows you to make the changes you wish along the way. It will be easier to make changes early than make them later.

8. Choose a moving & storage solution

You should decide if you want a full-service mover, a self-storage facility, or a combination of the two. You also need to consider your budget and your time frame.

Full-service movers will pack, load, and transport your belongings to your new home. They will also unpack and set up your furniture. Full service is the most convenient option but also the most expensive.

Self-storage facilities will store your belongings until you are ready to move them to your new home. You will need to pack and load your belongings yourself, but you will not have to worry about transport. This is a good option if you are on a budget or are unsure when you will be ready to move. 

9. Move into your dream home in Kenya

A home is not just a physical structure; it is a reflection of your personality and your lifestyle. Your home should be where you can relax, entertain, and enjoy your life. If your current home is not meeting your needs, it may be time to move into your dream home.

With movers in place, you won’t tire when moving, especially the full services movers.

The Bottom Line

As you have read above, building a home needs a proper plan execution and full-time presence. However, if you are abroad, you can hire agents to finalise the homebuying or building on your behalf. 

Frequently Asked Questions

How long does it take to build a home in Kenya?

The answer to this question is more determinant of your preparedness. If you have the land and enough funds for construction, you can build a home within two months. However, the process can delay due to improper estimations of construction materials.

What is the most important aspect of building a dream home?

It’s true things can go wrong. However, you can have proper plans starting with enough funds for construction. In addition, you need to get a good construction team who will not fail you.

Should I buy or build a home in Kenya? Which is cheaper?

If you already have land for construction, it will be cheaper to build than to buy an already-built house. However, you may consider buying a home if you don’t have land. That saves you from the stress associated with construction.