Q&A on broker issues and buying a new property

Q&A on broker issues and buying a new propertyImage Credit: Supplied

- Why only list your property with one exclusive broker?

Advertising your property with one broker adds value to it. If you advertise with multiple brokers, buyers will see multiple adverts. Buyers may therefore believe there are multiple properties identical to yours available and assume there is low demand, or, that you are anxious to sell and have engaged multiple brokers to assist you. Either way, you are inviting a lower offer than a property which is in short supply (read: desirable).

Of course, as an owner, you want to ensure maximum exposure, reaching as many buyers as possible to secure the best possible price. It is imperative, therefore, that your chosen broker has a focused marketing strategy. In addition to advertising on all of the major property portals, a broker must also have a database of active and archived buyers and sellers, landlords and tenants, who are all potential buyers. The broker must also have a network of trusted brokerages with whom it will liaise to guarantee your property reaches an expanded broker network in Dubai.

When selling, selecting the right broker with a clear marketing strategy is key. Exactly the same principles can be applied when selecting a broker to manage your purchase. Should you decide to approach multiple brokers with your property requirements, you should expect the same multiple brokers to initially offer you their own properties before exploring alternative options with external brokers — and herein lies the problem. Accepting multiple brokers are searching for the same type of property, it is reasonable to expect multiple brokers will speak to the owner of the same property. Suddenly this seller may think that there are multiple buyers in the market and their expectation of an achievable price starts to inflate — you essentially 'bid' against yourself.

In a market where values can fluctuate frequently, it is reassuring to know your chosen broker will actively search for your next home or investment.

- How do I know when is the right time to stop renting and start buying?

This is essentially linked to financial ability and stability. Dubai property purchases require a reasonable deposit when using mortgage finance, or a substantial cash amount if not. When you decide to call Dubai home for the foreseeable future (let's face it, when you've lived here for a few years it's hard to move on isn't it?), the money you are paying for rent will ultimately exceed the amount you will pay on a mortgage. This is when most our homebuyers make the decision to own, not rent.

It is during this initial transition that speaking to a trusted, well-informed, professional company will pay dividends. From recommending the right property and providing advice on mortgage and the most efficient and financially beneficial way to transfer your funds to Dubai, to helping you move into your new home, the right company will not only ensure you find the right home, but that your experience of buying your first home is actually enjoyable. When you work with a company you can trust, you're free to consider the important things: what rug goes best with this sofa?

- What are the main things to look for when buying a new property?

These are determined by what you are looking for: a home or an investment. When buying a home, consider what is important to you, both now and in the medium term. A home should offer you space in which you and your family feel both safe and comfortable. Beyond these essentials you may need quality leisure facilities, proximity to schools or other social infrastructure, or easy accessibility to work. When engaging a broker, you should expect to be asked comprehensive, intelligent, probing questions to determine exactly what it is you wish to purchase and why.

For those buying for investment, look for stable returns of 5-7 per cent. Alternatively, if capital growth is desired, areas which are enjoying ongoing infrastructure investment will usually appreciate in value more rapidly than mature locations.

Your broker should be able to identify what type of investment plan you require and offer recommendations accordingly.

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Source: Nick Grassick, Special to Property WeeklyPW

The author is Managing Director of PH Real Estate Brokers


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