It pays to engage an agent in Dubai property deals.
How much do I have to pay an agent to buy a home in Dubai’s Emirates Hills?
Typically, a professional real estate service in Dubai will charge a commission of 2 per cent of the final sales price. In Emirates Hills, both the buyer and seller usually pay a commission fee to their respective agents. Therefore, as a buyer, you will probably be responsible for paying a commission fee to your agent, while the seller would pay a commission fee to their agent. Before hiring a real estate agent, remember to clarify the commission fee and any other costs involved in the transaction. Honest and clear communication is fundamental.
I would like to buy directly from the owners. Is it possible?
Buying directly from a property owner, whilst rare, is possible. Whilst it might seem appealing as a way to avoid paying agency commission, it can open the buyer up to many potential complications in the process of purchasing a property. A lack of legal protection, inexperience negotiating a fair market price, the risk of falling prey to scams and fraudsters and misinterpretation of nuanced contractual litigation are all very real possibilities. What might start out as a shortcut to save a small fee could end up costing a buyer a lot of time, money and stress. The Spanish idiom aptly sums this up; Lo barato sale caro (buy poorly, pay dearly).
I am moving from the UK and prefer to buy than rent.
There are many benefits of buying a property over renting. This not only provides you with a home for you and your family but you could also benefit financially from capital appreciation. A mortgage allows you to spread the cost over a long period, and you gain control over renovations, potential tax benefits as well as a sense of security (not being subject to the whims of landlords). Plus, there are new golden visa benefits. It begs the question — If you are in a financial position to buy, then why would you pay off somebody else’s mortgage when you could pay off your own and potentially benefit from capital gains?
Do real estate companies provide a property sales report?
This differs from company to company. A property sales report informs you about community facilities, proximity to services and lists recent transaction prices.
How do I know the house I am inclined to buy is fairly priced?
In Dubai’s ever changing real estate market, knowing the fair price for a home can be difficult. The price of similar homes that have recently sold can give you an indication, with the condition of the property, upgrades and vicinity to community facilities also contributing to the fair value. It is a real estate agent’s job to represent you fairly and conduct thorough market research to help you find a well priced property. As Warren Buffet says, “You can’t do good deals with bad people”.
I heard there is a real estate regulatory authority. Do I approach them before I purchase property in Dubai?
Established in 2007, the Real Estate Regulatory Agency (Rera), is the regulatory body responsible for overseeing the real estate market in Dubai. If you are planning to buy a property in Dubai, it is important to be aware of Rera and its role in the market. While not strictly necessary to contact Rera directly, you can use their website and resources to research properties and developers, verify licences, and access information about regulations and laws that affect real estate transactions. Furthermore, Rera’s ensures that all real estate brokers and agents are registered and licensed. Before working with a real estate agent, always check their licence and registration status with Rera to ensure that they are authorised to operate in the market. Prevention before cure.
The writer is sales specialist at Betterhomes.
News Source: Khaleej Times