Buying a house in Kenya in 2022 can be challenging, especially if you are a first-time homebuyer. Buying a home is not for the faith-hearted. One reason is you need lots of money, and the other is time to search for the best deals. That makes the whole process a tiresome one.

Therefore, you need guidance on how you can prepare and search for your desired house and, finally, pay for it. That’s why we have this guide that will take you through everything you need to know before, during, and after home buying.

Here are the 5 key steps to follow when buying a house in Kenya.

1. How to prepare to buy a house
2. Get a good real estate agent
3. How to select your home
4. Final walkthrough
5. Sign sales agreement documents and make payment

Let’s get to the guide on what you need to take into consideration when you are making the purchase.

5 Simple Steps to Buy a Home in Kenya for Beginners

1. How to Prepare to Buy a House

Buying a house is unlike going to the market to purchase household items. Since homebuying needs a lot of money, you have to prepare before you can think of making the purchase.

So, what do you do?

• What’s your budget?

A budget should be the first thing to ring in your mind when you think of buying a home. Some homes are cheaper, while others are expensive. It all depends on the location and the size you need.

Once you know the total amount you need for a home purchase, you can start saving your money.

Read: 5 Tips on How to Save for a House in Kenya

• Start saving money.

The first thing to enable you to save money is multiple stable income sources. In addition, these income sources will make your mortgage repayment easier since there will be continuous cash flow.

Even if you plan to get a mortgage loan, you’ll still need money to cater for a home or mortgage down payment and other related costs. After saving money, start searching for the best mortgage loans.

Ensure you learn about the payment plan and see whether you can afford to pay the monthly installments. 

After you get a suitable lender, apply for a mortgage and let the lender preapprove you. This criterion will help you avoid disappointments during closing a deal on your home. However, get a mortgage contingency that will save you from fines if the lender decides otherwise regarding your loan approval.

Read: The best mortgage loan providers in Kenya

2. Get a Good Real Estate Agent

As a first-time homebuyer in Kenya, you need a professional to help you search for the best houses in your preferred locations. For instance, get a real estate agent from the site if you want a home in Nairobi or its metropolitan areas.

An excellent real estate agent will give you price approximations of homes in different areas. That will help you get your desired home faster, without much struggle.

Real estate agents will also help you get home to a place with good security and availability of social amenities. So you won’t suffer.

3. The Home Buying Process

After an agent shows you around the best houses in a particular location, you can select the one most appealing to you. 

• How to select an excellent house

You should look for things in a good house, such as electricity, water availability in the area, roofing quality, inner and outer walls quality, paint quality, and floor quality. In addition, you should also worry about who your neighbours are.

With those factors in mind, you’ll select a good house that will serve you for longer. And with good neighbours, you will not have any reason to sell your home in the future due to the wrong neighborhood.

• Make an offer to the owner.

After selecting the house you need, you can contact the owner and make an offer. In addition, ensure you ask them about repairs if there is anything that has to be fixed in the house.

At this stage, you should negotiate the house price if they cannot do the repairs because you’ll do them yourself.

• Get a real estate attorney. 

A legal figure is crucial when making big purchases. Get a real estate attorney who will handle all legal proceedings of home buying. 

An attorney can even represent you in court if something goes amiss with your new property. 

• Ask the owner about a recent home appraisal.

If you are using a mortgage, the lender will request to know the current worthiness of the home you are about to buy. Therefore, if the homeowner doesn’t have a recent home appraisal, help them get one because you’ll need it.

This will also help you get a quality home at a reasonable price instead of paying more money for a less-worthy house.

• Secure your funds.

After everything is okay, you can get home-buying funds from your mortgage lender. It will be a good idea to open an escrow account and deposit your home buying funds there. 

With an escrow account, you can get back your money if the seller appears to be spam.

4. The Final Walkthrough 

After securing your funds in an escrow account, go back to the property and do a final home inspection. 

Ensure the seller has done all the repairs and that they have all the required documents regarding the house. After confirming everything is in place, you can close the deal with your seller.

5. Sign the documents. 

This step brings the best feeling to both seller and the buyer since one will be a homeowner, and the other will make profits.

Therefore, get your attorney and witnesses ready when signing the sales agreement documents. 

The seller should also have their attorney and witnesses, and it will be a transparent process.

After the seller hands you the ownership documents, you can signal escrow to release the funds to the home seller.

The Bottom Line 

Now, you have the best procedure to help you buy a home in Kenya for the first time. Ensure you follow the process and will proudly be a new homeowner. 

Frequently Asked Questions 

1. Who qualifies as a first-time home buyer?

A single person who doesn’t have any past records of home ownership is a first-time home buyer. In addition, couples who have no past records of owning a home are also first-time buyers.

2. How long does it take to buy a home in Kenya?

While you can take possession of a house immediately, property transfers can take a while. On average, it may take up to 3 months for a title to be registered in your name.  

3. Can I own a home in Kenya while abroad?

Yes. You can get a real estate attorney to help you purchase a house in the country while you are abroad.

4. How much money do I need to buy a 1 bedroom house close Nairobi?

You’ll need at least Ksh.2.5 million to get a one-bedroom house in Nairobi. A three bedroom house costs from Ksh 7.5 million depending on the location.  But the prices will keep rising in the future.