Valuation check: 80 m² townhouse in Lagos, asking NGN 790,500,000

rowan_rose

Property manager
The 80 m² figure initially made the comparison look straightforward, but the usable layout and recurring building costs may matter more than the headline rate per square metre. This is a 2-bed Lagos townhouse in average condition, offered at NGN 790,500,000. It has good light and a strong location, although the finishes are dated and there may be reserve-related expenditure.

My evidence consists of three current listings and a single recorded transaction. I am inclined to use that sale as the starting point, then adjust for actual repair work and differences in usable space rather than apply a broad percentage. Before doing that, I need to verify the exact micro-locations and whether the tenure or remaining lease terms match. Would lease details outweigh service charges, parking and private outdoor space in your comparison?
 
One clarification: the asking price is roughly NGN 9.88 million per m², but I do not want that headline figure to create false precision. My inclination is to anchor on the completed sale, then treat the three listings as evidence of seller expectations rather than market value. For condition, I am considering an estimated cost-to-cure adjustment instead of a broad percentage discount.
 
That is the safer direction. I would not apply a generic floor-area percentage from the 80 m² figure alone. First compare layout and usable space: two homes with similar stated areas can have very different utility. Adjust the completed sale for identifiable differences, and use the listings mainly to test whether the resulting number looks plausible. What is the exact micro-location of each comparable relative to this townhouse?
 
I partly disagree on making the completed sale the anchor automatically. One transaction can be unusual, and without its timing, condition and tenure it may be less informative than a closely matched current listing after a realistic negotiation allowance. I would still give it the greatest weight, just not let it dictate the answer. Lease length or tenure details could overwhelm a modest condition adjustment.
 
The missing recurring costs would change my view most. Ask for the current service charge, what it includes, any anticipated reserve contribution, and evidence of recent major works. Then separate physical condition into necessary work and cosmetic updating. Parking and private outdoor space should be recorded separately rather than buried in a per-m² adjustment, because their value may not move in proportion to floor area.
 
I would like a defensible range, but one completed transaction is too fragile to carry the whole calculation. Put each comparable into a simple grid showing status, date, precise location, usable area, layout, condition, tenure or lease term, recurring charges, parking and outdoor space. Leave gaps marked as unknown instead of filling them with assumptions.

Then run the figures twice, first giving the sale the strongest weight and then reducing its influence. If the range changes materially, verify the tenure and recurring costs before refining the condition adjustment; those are harder to correct after purchase than cosmetic work.
 
Back
Top