For many first-time buyers and even experienced investors, real estate seems simple: find a property you like, review the price, pay, and take possession.

But in reality, what you see on a flyer or brochure is rarely the final cost you will pay.

The listed price might be ₦10 million or ₦100 million, yet by the time the transaction is completed, the buyer may have spent 10–25% more than the advertised amount. What causes this? Hidden and undisclosed costs.

These costs are not illegal, most of them are standard in property transactions—however, the lack of transparency creates confusion and frustration. Many investors assume the price stated by the agent is “all-inclusive,” only to discover new fees along the way.

Below are the most common hidden costs buyers encounter in real estate deals, and how to avoid them.

1. Development Fees

This is one of the most common unexpected charges. Development fees cover infrastructure around the property, such as internal roads, electricity connection, drainage, waste disposal systems, and estate security.

They are legitimate costs, but they are rarely disclosed upfront. Buyers only learn about them after making the initial deposit.

2. Documentation and Legal Fees

Documentation fees include:

Survey plan

Deed of assignment or deed of sublease

Registration and administrative fees

Depending on location and the type of property, these fees can run into hundreds of thousands or even millions of naira. Since this is not included in the initial price, it catches buyers off guard.

3. Agent and Agency Commission

Many buyers assume the agent’s fee is already included in the selling price. In most cases, it is not. Real estate agents typically charge 5% of the property value as commission. For a property worth ₦29.5 million, that is an additional ₦1.475 million.

4. Furnishing and Setup Costs

If the property is being acquired for rental or short-stay business (like Airbnb), furnishing becomes a major expense. Buyers often underestimate the cost of:

Furniture

Electronics

Kitchen setup

Air-conditioning

Internet installation

Power backup systems

Depending on the quality of furnishing desired, this could cost between ₦3 million and ₦7 million.

5. Facility Management and Maintenance Fees

For apartments or estate properties, there are recurring annual charges for:

Maintenance of common areas

Cleaning

Security

General utility management

Many buyers are not prepared for these recurring expenses.

How to Avoid Being Surprised by Hidden Costs

The solution is simple: transparency.

Before making any payment, buyers should request a documented breakdown of total acquisition cost, including:

Property price

Development fee

Documentation fee

Agency fee (if applicable)

If a seller or agent cannot provide a written cost breakdown, that is a red flag.

A serious property developer should be able to tell you, in writing, the exact cost of acquiring and taking possession of the property.

A More Transparent Approach to Real Estate Investment

Real estate should not be confusing, and investors should not feel blindsided. This is part of the reason innovative investment models such as fractional real estate ownership are gaining traction. Instead of buying a property outright, investors purchase verified fractional units at a much lower entry cost, and all fees are disclosed upfront.

Transparency gives investors confidence.

Clarity helps investors make informed decisions.

Final Thoughts

Real estate doesn’t become expensive because the property is costly.

It becomes expensive when buyers discover unexpected fees along the way.

Information protects your money.

Always request full cost documentation before making a commitment and only deal with companies that give you transparent pricing from the start.