The most important thing when it comes to buying or selling a property is its accurate valuation. Learn more about it by reading this complete guide.
Buying or selling a property in Dubai can be hard, especially for people with very little experience in the local real estate market. To make the most out of your property deal, knowing the latest real estate market trends can make a huge difference.
The most important thing when it comes to buying or selling a property is its accurate valuation. Property valuation helps you negotiate better deals that work for both parties.
In this article, we are going to share with your everything you need to know about property valuation in Dubai so stay with us. This information will help you make better decisions while selling your property or buying new land or a building.
What is Property Valuation?
As it is clear from the name, property valuation is a process where a real estate expert determines the price of a building after considering various factors. Property valuation is useful both for buyers as well as sellers.
The main idea behind property valuation is to consider things like location, nearby facilities, available amenities inside the house, age and condition of the building, and the current market trends to find out the most appropriate price that ensures more profit for the buyers or sellers.
Having your property valuated by some expert frees you from worries and gives you peace of mind that you are getting the best deal possible.
Why Do You Need Property Valuation?
Having a property valuation is extremely important. If you are a buyer, then you need to make sure the property you buy has the right location and all the major facilities are by your side. Without a property valuation, there is no sure way of knowing that you are getting the best deal for your millions of AED worth of property.
Sellers also need property valuation so that they can ask for the most accurate price based on the current market state. This prevents them from selling their property for less than what it actually is worth.
Thus, a property valuation can help investors of all kinds to find the best properties that fulfill their every requirement and are worth every penny.
How Do You Value a Property in Dubai
Here are a few ways you can value a property
Use Online Property Valuation Tools
This is the quickest way anyone can value property with minimum errors. Most property valuation tools are designed so that anyone can easily use these. They have friendly UIs which guide the users along each step of the valuation process.
Get Market Pricing Trends Reports
In this approach, you get to know about the selling or buying prices of properties that are similar to yours in the area of your choice. For example, let’s say you wish to buy a property having a 1-bedroom in Dubai Marina which is a highly transacted and popular area, here you will see an average transaction price of about AED 1.2 million. Now each similar property that you buy or sell is more likely to be in this range. The same is the case for less famous areas.
Use the Income Approach
In this approach, the price is derived by considering how much potential the building has for generating profits for the investor. This can be done using the profits method or the investment method.
This approach allows you to find a property that ensures long-term financial security.
Use the Profit Method
In this case, the trading potential of the business is considered for which the property is going to be used. This method is more common for commercial real estate valuation which is located in highly busy parts of Dubai.
Use the Cost Approach
This approach is considered for properties with no comparable evidence available and that do not sell in the open market under normal conditions. Places of worship, government, and public buildings fall under this category.
This approach allows you to determine the best price for these and similar properties by considering the actual cost of the building and equating it with the cost of some other building that is built from scratch and is similar to the one you wish to buy or sell.
Bonus Tip: Hire a Professional Property Valuation Service in Dubai
If you are still not sure about how to conduct a property valuation, then it is highly advised that you go for a property valuation service in Dubai such as Land Sterling. Our experts understand property needs and future financial goals of our clients. This allows us to find the best properties for buyers.
Sellers can use our services to save time and earn more profits by figuring out the best possible price for their property. Hiring an expert will ensure you get your money’s worth and are not lured into a scam.
Factors Affecting Property Valuation
Some important factors that can affect the property valuation are the location, age, condition, size, etc., of the building and the current local market and economic condition.
All these factors influence the selling or buying price and ignoring even one of these can cause you to end up in a deal that makes you liable to great financial loss.
So, this is all you need to know about doing a property valuation in Dubai. This information is great for beginners in real estate who are not so sure about how to determine the right price for a property. With this information, you can save time and figure out the best possible price to offer when buying or selling property.
We really hope this stuff helps and we wish you lots of luck in your every future real estate endeavor.
Frequently Asked Questions
The valuers use the sales comparison approach, income capitalization approach, and cost approach to find the value of any property.
It takes about 5 to 10 days for you to get a valuation certificate in Dubai.
It costs from AED 1,000 to over AED 6,000 to get a property valuation in Dubai, based on the nature of the project. The cost may vary based on the type and size of the property.
Yes, it helps you to find out what a property is actually worth so that you can get the best deal.
The direct comparison approach where recent sales of comparable properties are used to find the price is the most effective according to most experts.