Real Estate Agent Fees In Nigeria: 5 Important Facts You Must Know

Broker fees in Nigeria depend on the location, and whether you are selling, buying, or renting, and the commission is usually a percentage of the property price.

There is a fixed commission percentage for property sales, rentals, and property management.

This article will walk you through the Real estate agent fees in Nigeria.

Introduction

Real estate agent fees in Nigeria may vary depending on factors such as;

• Location
• Property type
• Property value
• Negotiation power
• Agent experience
• Marketing/advertising costs

These factors play a crucial role in the fees real estate agents in Nigeria get paid.

Who Pays The Real Estate Agent Fees In Nigeria 

This confusing aspect usually depends on the type of deal the contractor and the agent have going on. Traditionally, in most sales transactions, the agent is paid by the buyer, and the tenant pays the fees in rentals.

However, some sellers pay listing agents. It has been made illegal/discouraged in Lagos state for agents to get paid by both parties, i.e, both the seller and buyer, or the landlord and tenant, and there have been new regulations that push agents to charge their clients only.

Real Estate Agent Fees For Property Sales In Nigeria

The standard commission range for property sales in Nigeria is usually 5 to 10% of the property value. The typical fee for property sales in Nigeria, according to the current market price, is around 5%; however, the range can increase up to 10% depending on the location, negotiation, and property type. The most common commission range in Abuja and Lagos is around 5%.

The commission fee is most of the time negotiable, especially for high-value properties and off-market deals.

Real Estate Agent Fees In Nigeria For Rentals

This type of rental transaction is the most common transaction in bustling cities such as Abuja and Lagos.

The standard real estate agent fees in Nigeria for rentals is 10% of the annual rent, but can vary from 5 to 15% in some areas, depending on the demand.

According to The Africanvestor, many states in Nigeria, including Lagos, now enforce a 10% cap on tenancy agency fees.

Real Estate Agent Property Management Fees

The standard fees for property management in Nigeria are about 5 to 10% of the monthly or annual rent. This fee covers things such as tenant sourcing, property maintenance, rent collection, and so on.

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Important Tips To Know Before Paying Real Estate Agent Fees In Nigeria

Confirm The Agents’ Legitimacy And Identity

Before discussing commission prices, it is paramount that you first:

• Ask for a valid ID card
• Ask for their office address
• Confirm that they are registered with either NIESV or ESVARBON

This step is important because many of the agents in Nigeria are not licensed professionals; they are just middlemen.

It is crucial to use a licensed professional when conducting high-value transactions.

Put In Writing The Agreement Of The Commission Percentage

One of the deadliest mistakes to make in agent fee negotiation and agreement is to assume. Even if it’s on a simple messaging app or piece of paper, learn to write down clearly the commission, percentage, amount, payable date, and refund terms – if the deal happens to fall through.

Never Make Payment Before A Physical Inspection

No matter how excellent the property looks on camera, and how nicely it is described by the agent, it is vital that you go for a physical inspection before you attempt to make payment for it.

Other buyers are waiting in line, hurry up, pay the inspection fee before visiting, etc, are common scam tactics used by real estate agents who falsify the property descriptions to lure unsuspecting buyers or tenants.

Therefore, it is important to physically inspect the property and confirm that the landlord indeed exists and has the right ownership documents before making any payment.

Verify The Property Documents For The Sale/Purchase Of Property

To avoid future land disputes, before paying commission, make sure to confirm at the State Land Registry the following:

• Title documents
• Land registry search
• C of O/ other land title
• Survey plan

Clarify All Other Related Charges

Since rental transactions in Nigeria often include more than just the agency and agreement fees, ask for a full breakdown of the related charges before committing.

Other charges include:

• Legal fee
• Stamp duty
• Caution fee
• If apartment; Service charge

Never Pay Into Random Personal Accounts

Before making payment, make sure that the account name matches the landlord’s name or agency company name.

Make Use Of A Property Lawyer For High-value Sales

For any property purchase, let your lawyer;

• Handle the payment
• Draft and review the contract
• Ensure the commission clause is clearly written

Only Pay Full Commission After The Deal Is Completed

For property sales, commission should only be paid after the agreement is signed or the transfer is successful, while for rentals, commission should be paid after the tenancy agreement is signed.

Key Takeaway

Real estate agent fees in Nigeria are usually a percentage of the property price, with sales commission being 5% to 10% of the property value, rentals being 5% to 15% of the annual rent, and property management fees being 5% to 10% of the annual or monthly rent.

These commission percentages are subject to negotiation based on the advertisement costs, agent experience, property value, and other factors.

This article has explained the necessary information needed on real estate agent fees in Nigeria.

Real Estate Agent Fees In Nigeria Frequently Asked Questions

Can I Avoid Paying Agent Fees Entirely

Yes. You can avoid paying agent fees entirely if you deal with the property owner or landlord directly.

Can I Pay An Agent Before Seeing The Property

No. Prepayments are mostly scams, so you should never pay the agent until you have physically verified and inspected the said property.

Who Usually Pays The Agent Fee When Buying A Property

Traditionally, in most sales transactions, the agent is paid by the buyer, although the sellers might pay in some cases.