The UAE property market is set to see growth in 2018 and beyond, and for smart investors will continue to perform as an extremely profitable industry.
Participating in this marketplace will warrant making some of the most important and significant purchase decisions in your lifetime, yet negotiating the property market could prove be a difficult and daunting task for both inexperienced and seasoned property investors.
Whether you are buying or selling an investment property or your own home, everyone is after securing the best deal in the most efficient way possible.
In order to do so it’s important to keep the following points in mind:
1- The condition of the property.
It’s crucial to thoroughly inspect the condition of the property you’re intending to sell. You are essentially assessing whether it needs to be renovated.
Unnecessary renovations will be a waste of time and money so only carry them out if they will be adding considerable value to your property.
If in doubt, bring in an expert to value the property and heed their advice on what may need renovating.
I would also advise against renovating in a volatile market, if the market is going down there is no point out laying extra costs into the property.
2- Furnish the property.
By displaying the property as furnished this will enable the prospective buyers to imagine themselves living in the house and leave a lasting impression, much more so than if the property was empty.
It’s important to furnish the property with items that will appeal to the potential buyers – the right furniture will create an inviting warmth within the space.
Furnished properties will sell significantly faster than an unfurnished property and will save you paying extra interest and other potential expenses that keeping the property on the market may generate.
Before furnishing the property you must make sure that the expenses you are outlaying will be covered in the expected sale of the property.
3- Choose you real estate agent wisely.
Agents are a vital component of the selling process and can significantly affect the sale of the property.
You are essentially hiring a stranger to look after an incredibly important job.
Think of this task as an interview and before you select your agent, conduct as much research as possible into their past experience as a realtor and try to speak to a previous client.
The agent should know the particular area and the type of buyers extremely well in order to get you the highest price possible.
4- To auction or not to auction?
If you are selling at a time when the market is on the rise then having an auction is the best option. This will provide you with an opportunity to receive a higher price than expected.
If you decide on an auction, you need to have the best auctioneer who understands the area where the property is located. This component is often overlooked.
The best way to select the auctioneer is to see the potential candidates in action. This will enable you to notice their differences in style and methodology.
As a buyer, you ultimately want to get the lowest price possible while ensuring you have the best deal.
Using the skills listed below will give you a competitive advantage against the other people who are contending for the property.
a- Do your research.
Be sure to undertake thorough research of the chosen area and compare the prices of similar properties. When looking at the houses themselves, try to look for any defects or slight imperfections that you may be able to use to negotiate a lower price.
b- Employ a property buyer’s agent.
It will be in your best interest to hire a property buyer’s agent. A property buyer’s agents, also known as a buyer’s advocate, are certified professionals that will investigate, evaluate and negotiate the purchase of the property on behalf of the buyer.
In essence, they are doing most of the hard work for you. This will save you a large amount of time, money and stress than if you were to undertake this task on your own.
c- Going solo.
If you decide to go through this process without any outside help, such as a buyer’s agent, you need to be particularly confident when it comes to negotiation process.
The more initial research you do into the facts and figures of the area and property types, the more confident you will be in negotiating the best price for yourself.
d- Unconditional loan approval.
Once you find your property and you’ve decided that you’re committed, you need to be able to put a deposit down as soon as possible to show that you’re serious about the investment.
In order to do this, you will need to get an unconditional loan approval, which means that that particular property will be mortgaged by the bank.
You can then go back to the agent with your deposit right away in order to avoid any cooling off periods. The property will then be officially yours.
Many people avoid investing in property out of fear of failing. However with the American real estate prices historically doubling every 7 – 10 years, so with the right, long-terms mindset it can be extremely profitable.
In the UAE we are also seeing this, and keep in mind that time of crisis is also a good moment to invest.
Smart buyers and investors know that a good time to get into the market is when prices are down.
Investing is a long term game, and if you want to see yourself grow financially, you must think strategically.
For example, in Old Town Dubai, the average price for a 1 bed unit was approx AED600,000 ten years ago, and it is now AED1.2m.
That is a doubling in value over a ten year period, and that buy was in a time of crisis for the UAE economy.
So make your money in Dubai, earn your money in Dubai and invest your money in Dubai.