Property Guides
Dubai Property Selling Guide
This guide to selling property in Dubai aims to set out the main steps that are involved and that are likely to be encountered when selling your property. Hopefully the information contained within the guide will give you enough understanding and knowledge of the selling process in Dubai to approach the transaction in good confidence.
Your questions answered:
- Where do I start?
- Do I really need an Estate Agent?
- How does an Estate Agent arrive at a realistic valuation?
- I've had several valuations. Which Estate Agent do I choose?
- How much do Estate Agents charge, and is this negotiable?
- What about choosing a Solicitor? How much do they charge?
- What can I do to increase the value of my Property?
- How should I prepare my Property for viewings?
- What's the best way to conduct viewings?
- When I get an offer, should I take my Property off the market?
- How does the sale proceed towards 'Exchange of contracts'?
- How long should I give my Estate Agent to sell my Property ?
- What can I do to speed up the sale of my Property?
- What if the Buyer reduces their offer at the last minute?
- What if I can't sell, but have a property I want to move to?
- Do I have to pay the Estate Agent if my Property doesn't sell?
Where do I start to sell my Dubai Property?
Start with getting some professional help. It is not really realistic to expect to pay for your own promotion and marketing costs. This is where a property agent comes in very useful. Not only will they guide you on a realistic price for your property but they will be able to market your property to a huge range of potential customers, and all with minimal bother to you. It is also worth considering appointing a solicitor and financial advisor. Appointing a Dubai solicitor early can be particularly helpful, as waiting until an offer is made before making this appointment can result in slowing the sales process down.Do I really need a Dubai Estate Agent?
From a legal standpoint you certainly don’t need a real estate agent, but from a common sense point of view it really does make life a lot easier. Consider if you have the time, knowledge and resources to fully undertake the job yourself. Most people here would certainly be better off handing the job over to a specialist. A real estate agent won't charge you anything unless they successfully sell your property, so there really isn’t anything to be gained by avoiding going down this route. When you only pay for results it makes good sense to help yourself by using expertise of professionals.
And not only do you get all the above, there is the added convenience of being able to avoid having to deal with the time wasters than can inevitably crop up during the buying and selling process. Having a Dubai estate agent who is able to weed out all those who aren’t really fully interested and able to play a beneficial role in negotiations is a really worth while idea. A good agent can offer you invaluable advice and help out in times of problems such as problems with the property chain and if you receive multiple options. Agents will have encountered such situations countless times and are therefore in a strong position to give you good advice.
And again remember that all of the above wont cost you anything if your property is not sold! And nor is payment upfront required. The agent's fee in most cases is added into the final selling price, and therefore is normally paid by the buyer, not the seller.
How does a Dubai Estate Agent arrive at a realistic valuation?
In Dubai, for many properties there isn’t always a need for the agent to come to your home to give you a valuation, due the number of off plan homes that are part of well known developments, most homes will be of a standard layout out and style, and therefore buyers will know what to expect just from this. Of course some homes such as Emirates Hill and Signature Villas on the Palm are of a unique nature, but such homes due to their huge popularity and limited availability are able often set their own price as Dubai property has been on the up so much in recent years although recently we have seen a downturn.
Reasonable valuation can be obtained simply by looking at the current market place, at what is selling and what is not, and looking at similar homes in the development, and going from there. An agent may not have to ask many questions about your property, but certainly don’t be put off if he does. The more that is known about your property and your wishes in regards to the sale, the easier thing will be for both parties. A good agent should be willing to discuss what a realistic price to expect for the property is, and why. The agent who tells you the highest valuation is not necessary always going to be the best for you.
I've had several valuations. Which Dubai Estate Agent do I choose?
Many people may feel compelled to pick the agent who gives them the highest possible selling price for their property, but there is more too the selling process than just this. Other things to think about might include the agent's general demeanor. Do they answer the phone quickly and politely when you call, and are you made to feel welcome when you attend their offices? It is these little things that add up and can make all the difference to buyers.
And whilst it may seem attractive to pick the agent who gives the largest valuation, chances are it the valuation could be excessive. Valuation alone should not really be the deciding factor. Chances are, if your property is overvalued compared to others on the market, your property simply won't sell. This will waste time, and the most likely result is that you will simply have to reduce the price of the property down the line anyway. Look out for the below:
• Good reputation and a strong presence on the internet locally in Dubai
• Polite and well trained knowledgeable staff RERA affiliated.
• Clear and concise information
• Easy to use website and administration system
With the growth of the internet potential customers all over the world can now view all the property for sale simply by doing a quick search. Why wait for details to arrive in the post, when they can have instant access to Dubai Estate Agents' filing cabinets from home, 24 hours a day. This therefore highlights the importance of a strong internet presence and easy to navigate website.
How much do Dubai Estate Agents charge, and is this negotiable?
In Dubai, the market is highly competitive, and as a result agents tend to charge a standard fee of 2% of the selling price. The good thing is though that is not normally charged to the seller, but more often than not will paid by the buyer in the total cost of the property. There results of which is that by selling through a good internet based agent, not only do you get free marketing to an audience of potential buyers around the globe, but you effectively do so for free! Whilst the 2% fee is standard, levels of service are not. Therefore it is important to make you sure pick a well trusted and professional company.
And so those who want to keep the fees as low as possible on principle despite not necessarily being the one paying, it is worth bearing in mind that a higher fee can be worth paying if the agent has the skills to obtain a higher price in a reasonable time frame. For example, Agent 1 charges a fee of 1.5% to sell your property. a final selling price of AED 100,000 is achieved, the fee will be AED 1500. Now Agent 2 charges a fee of 2%. So if he finds a buyer for AED 105,000 for your property, the fee will be AED 2100. But you will still be AED 4400 better off than taking the cheaper option.
What about choosing a Solicitor? How much do they charge?
You may already have a solicitor that you are happy with, but if not then it is certainly worth considering getting one for the sale of your home. It is worth asking friends and neighbors if they can recommend anyone, or even your Dubai real estate agent. Picking a solicitor that your agent recommends can be a good idea, as the chances are they will have a good relationship, which will facilitate communication, therefore ensuring less time is wasted. It is worth ensuring your solicitor is a residential conveyancing service specialist. Whilst prices may vary a lot between solicitors, it might not always be best going for the cheapest option. Solicitors rarely come cheap; make sure their cost structure is clearly outlined from the beginning. Also be sure to find out who you will be dealing with on a daily basis, the solicitor themselves or one of their legal clerks. Such things can make a big difference. When it comes to the time to exchange contracts, speed at this point can be of critical importance! Make sure your solicitor is efficient and has an effective administration system to insure things at the point all run smoothly. You really do not want to be held up by an inefficient solicitor at this point in time.
What can I do to increase the value of my Dubai Property?
Many people worry about making big changes to their home when they come to put in on the market, but in most cases this is rarely worth while. Any major home improvements are unlikely to be recouped, and they buyer may end up changing them anyway. You are best off applying a few tried and trusted low cost techniques that despite being simple can make a huge difference to peoples perceptions of your home. The below can all help add value to your home:
Give the front door a coat of paint
Remove clutter to enhance a feeling of space.
Fill in cracks on walls and ceilings
Put a lock on any rear gate
Spring clean the property
Weed and clean up the garden
How should I prepare my Dubai Property for viewings?
As with most things in life, you only get one chance to make a first impression, and it counts! By following the below tips you can maximize the positive aspects of your home, and hopefully ensure that a potential buyer sees it in the best possible light.
• Tidy up and remove clutter
• Air your home.
• Vacuum and dust
• Try to make sure children and pets don’t interrupt any viewings
• Open all curtains and let in as much light as possible
• Clean all surfaces in the kitchens and bathrooms
• Perhaps add some flowers to the main room
• Consider brewing some coffee to give your home a welcoming aroma
It is also worth making clear the time frame that the potential buyer has for viewing the home. This way they can be clear to the time they need to arrive, and the potential window of time for viewing should you need to go out afterwards.
What's the best way to conduct viewings?
Again with any Dubai property being bought off plan or many people being the first people to move in, viewing are not always necessary. However when a viewing is necessary then the below can prove helpful:
Make sure with your Dubai Estate Agent who it will be conducting the viewing.
Ensure you have all keys readily available
It is also worth allowing time for viewers to discuss the property alone before they leave.
Feedback- a good Agent will call you with feedback after every viewing.
When I get an offer, should I take my property off the market?
Whilst it can depend on the situation, most agents will advise against taking your property off the market when you receive an offer. Even when everything seems to be going well, buyers can have a change of heart or try to use this advanced stage to negotiate on price, thinking you would prefer to reduce price rather than have the deal fall through. By leaving your property on the market you can reduce the likelihood of this happening.
However, the result of this is that buyers can feel a touch aggrieved, fearing you are still open to offers from others. Whether this is indeed the case is up to you, but it should be noted such actions could result in the buyer pulling out. To reassure both parties it can always be possible to undertake a written or verbal agreement to remove your property from the market for an agreed period whilst all surveys and finance is arranged.
How does the Sale proceed towards 'Exchange of contracts'?
In general the exchange of contract and the sale process is relatively straight forward. Whist some of the details will vary between developers, most property in Dubai is from Nakheel and Emaar, and follows a similar process. In most cases you will be expected to make a down payment on the exchange of contracts, then further installments, plus a fee to the developer. Exchange of contracts is done down at the developers office, and is normally very straight forward. Your agent will explain all the necessary details.
How long should I give my Dubai Estate Agent to sell my property?
This can depend on the state of the market, but in the Dubai market place, provided you expect a realistic asking price, it should not take long to sell your property with proper marketing. Give your agent around 6 weeks to secure an acceptable offer, and hereafter maybe a few weeks to sort out any contractual details and finance issues.
What can I do to speed up the sale of my property?
Sometimes you will just need to be patient as there is only so much that can be done. And whilst you may do everything within your powers to speed up the process there is little you can do if held up by other parties. However there are a few little things that can be done to maximize the speed at which things proceed. For example make sure that you agent has a set of keys should you be out. Also be flexible to last minute viewings can also help. It might also be worth considering appointing a fast track lawyer, who can obtain title deeds in readiness of the sale.
What if the Buyer reduces their offer at the last minute?
Sometime as the deal start to draw towards its conclusion, the less ethical of buyers might use this time to trying to force through a reduced offer. After all, the seller when presented with the potential to lose the sale at such a late stage could relent rather than having to start from scratch again. It's important for any seller in this situation not to panic or get angry.
Instead speak to your agents and formulate a plan of attack, and let the buyer know you won't be taken in by such tactics. Should such a situation arise, your Solicitor may wish to make contact with the buyer, communicate your position and make sure they are still serious about the purchase, and if they have any reasons for their actions, to put them in writing. For many instances, this will call the buyers bluff. However if the buyer is unwilling to move from their new position, you will need to assess if you can afford to start looking for another buyer. You will need to carefully discus the available options with your solicitor and property agent, as each case will be unique. In most instances, a compromise is reachable with the buyer, and both parties can be happy with the outcome.
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Sometimes a Buyer may reduce their offer after the survey, or after their mortgage valuation survey. You will have to negotiate through this, again taking the advice of your Solicitor and Estate Agent. It is unfortunately quite common for the Buyer's mortgage company to err on the side of caution, and value the property at up to 15% below the Estate Agent's valuation. Sometimes buyers may proceed despite this by making up the difference from their own funds. If this is not possible others in the selling chain may be prepared to make up the difference - your Estate Agent and/or Solicitor will advise if appropriate, and carry out negotiations.
What if I can't sell, but have a property I want to move to?
This will depends on your personal financial situation, but for most people it is very unlikely they will be able to go ahead without having sold their property first. The majority of people simply will not have the available capital to go ahead without having sold their home to finance the deal. However there are some other options, for example the opportunity of short term letting whilst also marketing the property for sale. The rent generated by short term lets can be substantial, and help towards some of your expenses. It is certainly an option worth considering.
Do I have to pay the Dubai Estate Agent if my Property doesn't sell?
You should not have to pay an estate agents costs if your property remains for sale, but solicitor's costs will be incurred. However some fast track solicitors may operate a no sale, no legal fees policy.
I hope you enjoyed our guide above if you are looking to sell your apartment or villas we can help you with any questions that you do not understand.