Home Buying Costs to Include in Your Budget

When it comes to buying a home in Nigeria, it’s essential to consider all the associated costs beyond the property’s price tag. From initial fees to expenses that arise during negotiations and after the sale, a clear understanding of your financial commitments is crucial. 

Arrangement Fees

If you’re planning to buy a home, you’ll likely need a mortgage to finance the purchase. This process involves engaging a mortgage broker who will guide you through the necessary steps and costs. One upfront cost to be aware of is arrangement fees. These fees, sometimes called product fees, are charged by the lender for setting up your mortgage. You can choose to pay them upfront or have them added to your loan, but remember that if added to the loan, you’ll pay interest on them.

Valuation Fee

During the mortgage process, the lender will assess the value of the property you intend to buy. While not all lenders charge for this valuation, it’s an expense to keep in mind, as it can vary depending on the lender and the property’s value. It’s important to note that this valuation is not as detailed as a full structural survey.

Survey Costs

Before purchasing a property, it’s wise to conduct a survey to uncover any potential issues. Various types of surveys are available at different price points, but the goal is to identify any problems that may require attention. Investing in a comprehensive survey can save you money in the long run by helping you avoid hidden issues.


The deposit is a significant consideration when budgeting for a home purchase. It’s the amount of money you contribute toward the property price. Generally, a larger deposit gives you access to a wider range of mortgage options with potentially lower interest rates. A good deposit is typically 20% to 35% of the property price.

Legal Fees and Conveyancing

To handle the legal aspects of your property purchase, you’ll need a solicitor or conveyancer. Their fees can vary, so it’s advisable to obtain quotes from different professionals. Conveyancing involves tasks like contract negotiation, stamp duty payment, and local authority searches.

Land Registry Fees

Once the property is officially yours, your conveyancer will handle the process of registering it in your name, incurring land registry fees.

Moving Costs

Moving day can be both exciting and stressful. Consider hiring a removal company to ease the process. The cost of removal services depends on factors like the volume of your belongings and the distance to your new home.

Agent Fees

If you’re selling a property, you’ll need to pay estate agent fees for their services. These fees can vary but are typically negotiated and agreed upon when you instruct the agent to sell your property. If you’re solely a buyer, you might choose to instruct a buying agent to help you find a suitable property and negotiate the best price.


Buying good value homes in Nigeria entails more than the property’s price tag. Understanding the associated costs, such as arrangement fees, valuation fees, and legal expenses, is crucial for a smooth home-buying journey. To navigate this process smoothly and find the best property deals in Lekki, Ikoyi, and environs, consider Dozek. With top properties like MaisonHills, Ikoyi, Jed’s Court, and Janelle’s White Cove now selling, Dozek is your reliable partner for securing the current best real estate deals in Ikate Lekki, Ikoyi, Lagos and environs.