July 9, 2025
Purchasing your first home in Ghana should be one of life’s most exciting milestones, but for many first-time buyers, it becomes a costly nightmare filled with legal battles and financial losses. With Ghana’s housing deficit at 1.8 million units and property prices in Accra ranging from GH₵300,000 to over GH₵1,000,000, the stakes have never been higher for making the right decisions.
The sobering reality is that land disputes now constitute 52% of all court cases in Ghana, making proper preparation essential for protecting your investment. Patrick Ebo Bonful, President of the Ghana Real Estate Developers Association (GREDA), emphasises that “safe and secured home ownership requires careful consideration, research, and diligence on the part of the buyers.”
Yet many first-time buyers, particularly diaspora Ghanaians aged 25-50, fall into preventable traps that cost them thousands of cedis and years of legal complications. Understanding these critical mistakes first-time homebuyers make and how to avoid them is your first step towards successful homeownership in Ghana.
Mistake 1: Not Doing Proper Market Research
The most expensive mistake first-time buyers make is diving into the market without understanding local dynamics. Many rely on outdated information or word-of-mouth recommendations, leading to poor investment decisions and overpaying for properties.
Current market data shows Ghana’s real estate sector experiencing significant growth, with 35% of transactions being investment-focused. Smart buyers conduct thorough research using credible sources like the Ghana Statistical Service, Bank of Ghana reports, and established property platforms.
How to avoid this mistake:
- Compare property prices across multiple areas using verified platforms
- Research historical price trends and future development plans
- Understand rental yields (currently 8-10% in prime Accra locations)
- Consult with experienced property professionals who understand local market conditions
At Landmark Homes, we provide comprehensive market analysis and insights to help first-time buyers make informed decisions based on current market realities.
Mistake 2: Failing to Budget for All Costs
Beyond the purchase price, first-time buyers often forget substantial additional expenses that can total 5-12% of the property value. These hidden costs can destroy carefully planned budgets and force buyers into financial strain.
Essential costs include stamp duty (0.25%-1% depending on property value), legal fees (typically 1-3% of property value), registration fees, survey costs, and mortgage processing fees.
Complete cost breakdown for a GH₵500,000 property:
- Stamp duty: GH₵2,500-5,000
- Legal fees: GH₵5,000-15,000
- Registration fees: GH₵2,000-5,000
- Survey costs: GH₵3,000-8,000
- Mortgage processing: GH₵5,000-10,000
- Total additional costs: GH₵17,500-43,000
How to avoid this mistake:
- Request a complete cost breakdown from your lawyer before committing
- Add 10-15% buffer to your budget for unexpected expenses
- Factor in ongoing costs like property management and maintenance
Mistake 3: Skipping Mortgage Pre-Approval
Many buyers begin property hunting without understanding their financing capacity, leading to disappointment and missed opportunities. Current mortgage rates in Ghana range from 19% (pension-backed schemes) to 35% annually, with most banks requiring 20% down payments.
The Bank of Ghana limits mortgage repayments to 40% of monthly salary, significantly restricting purchase options for many buyers. Industry experts note that proper financial planning is essential as the real estate sector continues to impact Ghana’s financial landscape.
How to avoid this mistake:
- Get pre-approved with multiple lenders to compare terms
- Understand different mortgage products available (conventional, pension-backed, staff loans)
- Consider banks offering special first-time buyer programmes
- Factor in mortgage insurance and processing fees
Our comprehensive mortgage guide explains available financing options to help you secure the best possible terms.
Mistake 4: Overlooking Property Inspections
Chris Nii Abbosey from CBC Properties warns that documentation is sometimes scanty in Ghana’s market, making thorough property inspections absolutely crucial. Many first-time buyers skip professional inspections, only discovering structural defects, utility problems, or drainage issues after purchase.
Professional property inspections typically cost GH₵60-100 but can save thousands in unexpected repair costs. They should include comprehensive assessments of structural integrity, utility connections, drainage systems, and boundary verification.
How to avoid this mistake:
- Hire qualified structural engineers and surveyors
- Visit properties multiple times, including different times of day
- Check water pressure, electrical systems, and drainage during rainy seasons
- Verify actual plot dimensions against stated measurements
- Document all findings with photographs and written reports
Mistake 5: Ignoring Location and Future Development
First-time buyers often focus solely on current amenities while ignoring future development plans that will significantly impact property values. Ghana’s ongoing infrastructure development, including transport networks and urban planning initiatives, creates both opportunities and risks.
Key location factors to evaluate:
- Proximity to business districts and employment centres
- Access to quality schools and healthcare facilities
- Current and planned transport links
- Security levels and community facilities
- Future development projects in the area
How to avoid this mistake:
- Research local government development plans
- Understand school catchment areas and their impact on property values
- Consider planned infrastructure projects like the Accra-Kumasi railway development
- Evaluate long-term appreciation potential based on urban growth patterns
Mistake 6: Not Verifying Land Title and Ownership
This represents the most dangerous mistake for property buyers in Ghana. Ghana’s complex land tenure system creates significant risks, with land conflicts increasing annually and constituting over half of all court cases.
The Supreme Court has expressed serious concern about chaotic land ownership records and people “selling the same land to multiple buyers” without prosecution.
Essential verification steps:
- Conduct thorough title searches at the Ghana Lands Commission
- Verify seller identity against title documents
- Engage qualified lawyers for document authentication
- Use the new online verification system for consolidated search reports
- Ensure proper surveying and boundary demarcation
How to avoid this mistake:
- Never proceed without completed land searches
- Verify all documentation with the Lands Commission
- Engage experienced conveyancing lawyers
- Insist on meeting the actual property owner, not representatives
- Understand the difference between freehold and leasehold interests
Mistake 7: Rushing the Process
The recent Sucasa property scandal demonstrates how promotional deals and unrealistic completion promises can mask serious problems. Victims reported being attracted by “exclusive” deals and quick completion timelines that proved impossible to deliver.
Pressure tactics often involve artificial deadlines, limited-time offers, or claims that “other buyers are interested.” Legitimate developers and sellers welcome proper due diligence and won’t pressure buyers into hasty decisions.
How to avoid this mistake:
- Take sufficient time for proper due diligence
- Be wary of deals that seem “too good to be true”
- Resist artificial urgency and pressure tactics
- Verify all claims about completion timelines and delivery schedules
- Trust your instincts if something feels rushed or unclear
Mistake 8: Relying on Verbal Agreements
Ghana’s legal system requires written contracts for property transactions. Verbal agreements, handshake deals, and informal communications provide no legal protection when disputes arise.
How to avoid this mistake:
- Insist on written agreements for all transactions
- Ensure contracts are properly witnessed and notarised
- Include detailed payment schedules and completion dates
- Specify penalties for delays or non-performance
- Engage licensed legal practitioners for contract preparation and review
Mistake 9: Choosing the Wrong Developer or Agent
Industry surveys show significant variations in professional qualifications within Ghana’s real estate sector, making careful selection of property professionals crucial for transaction success.
Working with unqualified agents, inexperienced lawyers, or questionable developers significantly increases fraud risk and legal complications. Recent cases highlight the importance of working with established, licensed professionals with proven track records.
How to avoid this mistake:
- Verify all professionals through the appropriate regulatory bodies
- Check agents with the Ghana Real Estate Agency Licensing Board
- Confirm lawyers with the Ghana Bar Association
- Research developers’ completed projects and client testimonials
- Choose companies with established reputations and transparent practices
At Landmark Homes, we’ve built our reputation on transparency, quality, and client satisfaction, with completed projects like The Madison setting new standards for luxury living in Accra.
Your Path to Successful Homeownership
Successfully navigating Ghana’s real estate market demands patience, preparation, and professional support. The government’s ongoing efforts to digitise land records and strengthen legal frameworks represent positive developments, but buyers must remain vigilant and well-informed.
Working with experienced, licensed professionals and conducting thorough due diligence, though time-consuming, prevents the costly disputes that plague Ghana’s court system. Remember that investing in proper verification processes protects both your financial investment and your family’s future security.
Frequently Asked Questions
What documents should I verify before buying a home in Ghana?
Essential documents include the land title certificate, survey plan, building permit, site plan approval, and seller’s identification. All documents should be verified with the Ghana Lands Commission and relevant municipal authorities. Additionally, confirm tax clearance certificates and any encumbrances on the property.
How can I estimate the total cost of buying a property?
Beyond the purchase price, budget for stamp duty (0.25%-1%), legal fees (1-3%), registration fees, survey costs, and mortgage processing fees. Total additional costs typically range from 5-12% of the property value. For a GH₵500,000 property, expect additional costs of GH₵25,000-60,000.
Why is mortgage pre-approval important for first-time buyers?
Pre-approval clarifies your actual purchasing power, strengthens your negotiating position, and prevents disappointment from pursuing properties beyond your budget. With mortgage rates ranging from 19-35% and strict salary-to-debt ratios, understanding your financing capacity before house hunting is essential.
What are the risks of not inspecting a property before purchase?
Skipping professional inspections can lead to discovering structural defects, utility problems, drainage issues, or boundary disputes after purchase. These problems can cost tens of thousands of cedis to rectify and may affect the property’s value and livability. Professional inspections cost GH₵60-100 but can save substantial future expenses.
How does Landmark Homes support first-time buyers in avoiding these mistakes?
We provide comprehensive support, including market analysis, legal guidance, mortgage consultation, property inspections, and transparent documentation. Our experienced team helps first-time buyers navigate Ghana’s complex property market whilst avoiding common pitfalls that lead to disputes and financial losses.
Ready to make your first home purchase in Ghana a success? Contact Landmark Homes today for expert guidance, verified properties, and a smooth, stress-free buying experience. Our team of professionals will ensure your investment is protected every step of the way, from initial research to final completion.