The home-buying process in Kenya is very different from what you may be used to in other countries. For instance, in some countries, you must get a pre-approval mortgage before sending an offer to the seller.
This article explains what you should encounter in the home-buying process in Kenya. It’s simple to understand and follow the steps. Once you follow them, you’ll buy your home without any issues attached.
We also have other guides in the real estate sector, like investing in income property. Read more of our blogs here.
The Homebuying Process in Kenya
1. Save money for a downpayment
Home is not a cheap asset. It requires a lot of money to buy and maintain. Therefore, starting to save money for your home as early as possible is a good idea.
You can devise more ways to make money to save more. Be prepared to pay a mortgage down payment of at least 5% in Kenya.
However, if you plan to buy your home with cash, you’ll have to save lots of money. But the good thing is you will pay no interest to any lender.
After saving enough money for a purchase or downpayment, you should search for a real estate agent.
2. Find a real estate agent
The first thing you need to do is find a real estate agent. In Kenya, the government has no control over real estate agents, so it is essential to find a reputable one. Ask your friends and family for recommendations, and do your research to ensure you find an agent you can trust.
Alternatively, we can help you find a reputable real estate agent in your area of concern. You can get one of your area’s best real estate agents with our help.
Once you’ve found an agent, they will help you find a property that meets your needs and budget. Furthermore, the agent will help you negotiate the price with the seller after finding a property you’re interested in.
3. Get your funds ready
After agreeing on a purchase price with the seller, the next step is getting a mortgage loan. At this point, you need to get your savings to pay for the down payment. In Kenya, most banks require at least a 10% down payment.
Most banks usually have a property appraiser, so they may send one to your chosen home to appraise it. They usually do that to ensure you don’t pay more money for a less-quality house. It also saves them if you don’t repay the loan as you agreed.
4. Hire a property valuer
A property valuer will help you know the actual property price considering any shortcomings. They should inspect both the external and internal areas of the home you are about to buy.
A property value ensures you don’t pay more for a property that needs a lot of amendments. In addition, if the current owner disagrees with the said value, they can first renovate their home before you purchase it.
If the owner is unwilling to amend the mistakes, you still have a choice to look for other homes without hidden mistakes.
5. Get a property lawyer
The next step is to hire a lawyer to help you with the paperwork. This step is very important, as many legalities are involved in buying a home in Kenya. Your lawyer will help you navigate all documents and ensure they are legit before committing your money.
In addition, a lawyer can represent you in court if your property develops legal issues.
6. Close the deal
You can now close the home-buying deal if all the documents are legit. The attorney, a bank representative, and witnesses from both sides should be available on the day of closing the deal.
During the transfer of the ownership documents, as a buyer, you should pay a 4% stamp duty if the property is within municipal areas and 2% outside municipalities.
After the seller transfers the ownership documents, you can transfer the money to them with the help of your bank representative.
The Challenges of Buying a Home in Kenya
High cost of property in Kenya
While prices have been rising in recent years, they are still out of reach for many Kenyans. This is especially true in the major cities such as Nairobi and Mombasa, where prices can be as much as double those in smaller towns
Poor financing
Many banks and other financial institutions are reluctant to lend money for property purchases in Kenya due to the high risks involved. This can make it difficult to obtain a mortgage or other type of loan to finance a home purchase.
Poor infrastructure
Kenya is a developing country, and many areas do not have reliable electricity or running water. This can make it difficult to live in some areas, especially if you are not used to living without these amenities.
Despite these challenges, Kenya is still a popular destination for homebuyers from all over the world. If you are interested in settling in Kenya, check out our listings in the most developed areas in the country.
Tips for Buying a Home in Kenya
Consider the best locations with all amenities
See online listings on websites or social media
Compare different homes
Do not rush to choose a home
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Finally
The home buying process requires patience and slow execution of events. You should be careful, from searching for a home to closing a deal.
Always ensure you get a professional real estate agent who will help you get the best home, even if you are new in the industry. It’s simple to buy a home in Kenya, even when you are abroad.
We can help you get a good agent and still lead you to good houses in areas you like to live. Send us a message and tell us your concerns.
Frequently Asked Questions
How long can the home-buying process last?
Depending on when you get a good house, the home-buying process can last between 3 and 6 months. However, you should not rush because you can make serious mistakes that will haunt you later.
What are the main steps to prepare before purchasing a home?
You should first:
Save money for a downpayment
Find a real estate agent
Hire a property attorney
Which is better, buying land or property?
It all depends on what you want to do with the property. If your main aim is to engage in agricultural activities, you may have to find land with water resources. If you want to settle in your home faster, buying an already complete property is better.