Find out the Rational Market Worth of a Home before buying it

Posted by Allegoria Properties on July 29th, 2017

The discussion for price depends whether you are a buyer or a seller. In mature real estates property markets like US, UK or Canada, the registration information regarding sale gives the price as a reference for different property types. The transaction data traditionally is restricted to sale prices by the area published by DLD in UAE. This is currently not available in other emirates.

Verified transaction data can take place of price discussions with good decision making joined with professional value opinion for an individual property. Property value is decided by multiple factors like age, condition, location, competitive transactions and view. The valuation reports by the third party generally form the base for lending mortgages and can be a standard for arriving at a market price in cash transactions.

Right valuation provider requires diligence. Needed qualifications, local market knowledge, and experience are the crucial attributes for the professional who are providing the real, independent and accountable reports. Below mentioned parameters must be considered:-

• Trade license including real estate valuation activity
• Professional indemnity insurance and the proof that its sum is insured protect buyers and sellers.
• Registration and regulation of RICS.
• Compliance with RICS and International Valuation Standards
• Organized chart depicting the valuation of personnel, designations, qualifications and UAE year’s experience.
• The amount of staff having universally recognized qualifications of valuation.
• A sample report of valuation to make sure of the supporting evidence of the value reported.
• The proof of the strong quality of assurance processes.
• The registration details of Real Estate Regulative Authority.

The current registered value is decided by the training, past record and transaction access. Without the use of any of these, any opinion is of limited accuracy.

Low priced villa/townhouse stock continues to enter the market in areas such as Dubailand, affecting the price changes for already existing communities. Declines in rents are going over more in villas/townhouses than in apartments over the last 1 year.

In locations such as Dubai South and Sports City, the starting price is Dh700,000  for apartments,  which is emerging as a driving demand from first-time buyers. Communities that already have infrastructure and facilities continue to drive better rents than outlying areas which have limited amenities and where the majority of the projects are still under construction.

International City and Dubai Marina are still leading the secondary market transactions, especially for apartments this quarter, while the leading locations for off-plan apartment sales were Jumeirah Village Circle, Dubai South, Dubailand and Business Bay.

In this ever changing real estate atmosphere, perfection is the main element and an independent professional opinion of value can help buyers and sellers arrive at realistic market values.

About the Author:-

The article is written by Bhupendra Choudhary, associated with Allegoria Properties, the leading real estate brokerage in Dubai, UAE. Allegoria Properties is a part of Allegoria Capital which helps clients achieve their real estate needs and goals without any hassle.