As the housing crisis deepens in urban centers, the unscrupulous practices of some unlicensed agents have further compounded the challenges for individuals and families seeking affordable accommodation.
Each year, thousands of vulnerable individuals fall prey to these agents, who promise false hope but deliver despair. This growing trend has left professional house valuers scrambling to regain the trust of their clientele.
Recent checks revealed that property owners are increasingly hesitant to list their houses with traditional estate valuers, citing mistrust, high commission fees, and inefficient marketing strategies.
A recent survey conducted in Oluyole Estate, Ibadan, Oyo State, indicates a larger percentage of property owners expressing concerns about the mistrust between stakeholders in the property business, as they also criticize the excessive commission fees demanded from house-seekers.
“The house agents are endangered species,” remarked Mr. Mayowa, a house-seeker. “The agent’s commission was excessive. Before I moved into my new apartment, I had to pay fees to three different agents for showing me the same place. I was desperate, so I paid them.”
Another house-seeker, Mr. Gbenga from Kuola, shared his experience: “The agent I engaged was evasive about property details. What I saw on the phone was not what I encountered when I visited the apartment.”
Mr. Gbenga and Mr. Mayowa are not alone in their struggles. Mrs. Olubunmi Ogunrobi, a real estate consultant, pointed out that many people fall into traps like these because homeowners are reluctant to pay consultants for managing their property listings. Most landlords prefer to pocket the agent fees and engage unlicensed agents instead.
“There is no government control or price regulation on rent in Nigeria. Many landlords want the agent fee but are not ready to be accountable for it,” Mrs. Ogunrobi stated. “Estate valuers charge 10 percent of the property’s value, and most landlords prefer to keep the money rather than pay professionals for their services.”
Property owner Mr. Aduragbemi from Oluyole Estate shared, “I have been approached by several estate valuers offering their services to manage and rent out my property. After careful consideration, I decided not to engage them due to the loss of control, commission fees, and lack of a personal touch.”
Yinka Faniyi, a businesswoman in Ibadan, echoed these sentiments, stating, “In my opinion, estate agents in Nigeria are among the most challenging unprofessionals to deal with. Their unprofessionalism, lack of transparency, and dishonesty have turned property transactions into nightmares. The excessive, hidden commission fees and misrepresentation have been a constant source of frustration for me.”
She suggested that the government should establish and enforce stricter licensing requirements for agents and urged agents to disclose commission fees and property information upfront. “Clients should report unprofessional agents to regulatory bodies; only through collective action can industry standards improve,” Faniyi said.
Conversely, Mrs. Toyin shared a positive experience with a trustworthy agent who helped her find her dream apartment without overcharging her. “He always checks if everything is fine in the apartment,” she said.
Oluwole James, another victim of unscrupulous agents, warned that “house agents are gradually becoming a menace.” He emphasized that house-hunting can be daunting, especially with the numerous cases of fraud and exploitation.
For Mr. Usman Abiodun, a builder, rising rents are becoming increasingly unreasonable. “My landlord increases the payment under various fraudulent pretexts, whether it’s for water or nonexistent security. The government must take action, and there should be penalties for non-compliance. We can’t continue paying double rent as agency fees,” he said.
Meanwhile, Mrs. Odusokan, the wife of a real estate agent, highlighted a different reality, stating, “My husband is an agent, and that’s how we survive. If people don’t pay, we can’t eat.”
Similar Experience in Lagos
The experience in Lagos mirrors that of Ibadan, with accommodation seekers often facing similar issues. Despite government regulations stating that no property owner should collect more than one year’s rent upfront, many house owners continue to flout the law with impunity.
In Lagos, the combination of a large population and housing scarcity makes finding rental properties a daunting task. While some property owners adhere to one year of upfront rent, many demand two years or more. Additional mandatory charges, such as commission fees, agreement fees, and damage fees, vary significantly.
A male resident, who wished to remain anonymous, recounted a recent experience in Lagos. “When my brother-in-law was looking for a three-bedroom apartment, he settled for one at N550,000 per year. He was initially told to pay a 10 percent commission, a 10 percent agreement fee, and another 10 percent for damages. In the end, he had to negotiate a flat rate of N50,000 for all fees.
“However, the agent who introduced him to the main agent later demanded N250,000, taking advantage of my in-law’s desperation. It was only after paying that he discovered he could have settled for N150,000,” he explained.
Temitope Ahmad, an art director, shared his frustrating experience with Lagos agents, stating, “Many of the house agents in the state have zero conscience. During my first encounter, I was told to pay a mandatory form fee, which I negotiated down. The agent wasted my time showing me properties that didn’t match my requirements, all while demanding extra fees for transportation.”
The consensus among house-seekers is clear: while the search for affordable housing remains fraught with challenges, vigilance and collective action are essential in navigating the complex landscape of real estate in Nigeria.