Asking Price, Achieved Price and Market Value in Lagos

A Lagos property buyer will often encounter several different figures for the same type of property. There may be a seller's asking price, a price reported for a recent transaction, an agent's view of where negotiation could settle and a formal opinion of market value.

Each figure can contain useful information, although each answers a different question and should be weighted according to the evidence behind it.

An asking price records the seller's current position

An asking price is the amount at which a property is being offered.

It can provide useful evidence about seller expectations and current market positioning, particularly where several genuinely comparable properties are being marketed at the same time. The buyer should still establish whether the figure has been tested through a concluded transaction.

RICS guidance on comparable evidence recognises that valuers can use a range of evidence, including asking prices, where transaction evidence is limited. The weight placed on that evidence depends on its quality and on the valuer's understanding of the market.

An achieved price records a transaction

A concluded transaction generally carries greater evidential weight because it reflects an agreement between parties at a particular point in time.

The headline figure still needs context. The property may differ from the subject in size, condition, title quality, floor level, view, age, specification, payment terms, completion status, density or another characteristic that affects value.

Verification also matters. A reported transaction should carry less weight where the amount, date or terms cannot be confirmed. HIDD therefore classifies market inputs by evidence type, including asking prices, reported transactions, verified transactions and practitioner estimates, and states which inputs have been independently confirmed.

Market value is a professional opinion formed from evidence

The International Valuation Standards define market value as an estimated amount at a specified valuation date under stated market assumptions involving willing, knowledgeable and prudent parties in an arm's-length transaction.

A formal valuation therefore requires the valuer to identify relevant evidence, test its reliability, analyse how closely the evidence resembles the subject property and reconcile material differences.

RICS Comparable Evidence in Real Estate Valuation similarly emphasises the quality, similarity, recency and verifiability of comparable evidence. As at August 2026, RICS states that its first edition remains the current adopted document while a second edition is under consultation.

Lagos requires careful segmentation

Location is one dimension of comparability.

Two properties within the same neighbourhood can belong to different market segments because of building type, age, specification, plot characteristics, tenure, service quality, floor level, density, development quality or target buyer.

This is why a broad price per square metre can mislead when it compares unlike products. A rate becomes useful only after the underlying evidence has been tested for genuine comparability and the denominator is defined consistently.

The same discipline applies across Lagos. The appropriate comparable set should be built around the property being valued and the market in which that specific asset competes.

The buyer should ask what each figure proves

When a price is presented as evidence, the buyer should establish:

• whether the figure is an asking price or a concluded transaction;
• how recently the evidence arose;
• how closely the property resembles the subject;
• whether the transaction or quotation can be verified;
• what adjustments are required for material differences;
• whether the evidence reflects the same buyer segment and property type;
• whether any per-square-metre comparison uses a consistent area basis.

Where the evidence is thin, the valuation conclusion will require more professional judgement and the report should make that clear.

The useful question for a buyer is therefore the strength of the evidence supporting the price and the degree to which that evidence is comparable to the property being assessed.

This article is general information and is not advice on any specific property or transaction. The scope and legal effect of any engagement depend on the facts, documents and agreed terms applicable to that matter. For property due diligence, inspection, risk intelligence or valuation enquiries, contact HIDD Advisory.