For everyone living and working in Nigeria I think we all deserve a big kudus. You will agree with me that since October 2014, it has been one major challenge after the other in the country.
First it was the Political activities in the nation (which literally shut down the whole economy) then, the drop crude oil prices which affected the nation’s revenue adversely, the over 40% fall of the Naira against the US Dollars (which is just killing everything) is another major economy crippler not to talk of the very many internal factors (such as security, non appointment of Ministers, Cold Wars in the Senate and House of Representatives, non payment of salaries in the public sector for months now. etc).
We’re not here to highlight the catalogue of woes afflicting the nation but to acknowledge the fact that there are serious issues in the country and every sector is affected. Well I’m sure the various sectors in the country are working on their survival tactics but I’m here to simply highlight a few things you need to do as a real estate broker in this period to ensure your survival:
1.) Expand your reach: Since there is a major shrink in the economy it is only logical to say that you need to get new clients as most of the ones you currently have may be cutting down on costs and won’t be making major real estate investments at this time.
2.) Give your clients more property options: For instance if you were only offering properties of about N200 Million and above to your clients before, you can recommend equally good properties of between N50 – N100 Million in emerging locations. More like product diversification.
3.) Give proper advice to your Principals: Especially in the area of leases, you have to advise you clients on the going rates in the market so the products are not over priced. For instance, if your principal was charging $50, 000 for lease of a 3 bedroom flat last year December, you need to let him know that he has to seriously review this rate since the exchange rates have changed. $50,000 last year was N8, 250, 000 at N165:$1, today it is N12, 000, 000 at N240:$1. So, prices have to be adjusted to correlate with the previous Naira value since companies operating here generate their revenue in Naira. This principle affects all property offered in USD. I mean both properties for sale and lease as well as their annual service charge. As a matter of fact, it is better to make offers this days in Naira, especially since there is now a CBN policy to that effect.
4.) Finally, I will advise that you pay attention to your expenditures. Most brokers have terrible spending habits. So, it is only wise that till these economic issues blow by, you cut down on unnecessary spending.
If you must survive in this current economy, I will advise you take the points listed above very seriously.
This infographics says it all.