“I wish to be cremated. One tenth of my ashes shall be given to my agent, as written in our contract.” -Groucho Marx
One may cringe hearing this line by the American master of quick wit. What you really wanted to hear was this other line by the young British actress, Imogen Poots – “I'm lucky in that I have close friends and family and my agent to advise me.”
Although both these entertainers were talking of a different agent, this is also true of real estate.
Last year, with the announcement of Real Estate Self Transaction, or ‘REST’, Dubai Land Department ruffled a few feathers when brokers came under threat of becoming redundant in the market.
It is not unusual of home buyers who are unequipped about the market scenario to become wary of middlemen. Especially the ones who have never purchased a property until now.
In home buyers’ defense, some real estate agents get greedy for a quick deal and make errors that cost buyers a crucial amount of money. Bad news get out fast and concerned friends and family will warn them against losing money due to the wrong advice of an agent.
However, the good news is that these worries can be put to rest in an investor-friendly city like Dubai!
In Dubai, RERA authorized / licensed agents representing reputed firms are authenticated by property portals such as Myvilla.com before a listing and agent details are published on public domain. Agents are verified for providing quality service, honestly and ethically to their customers. When you opt NOT to hire a good agent over the follies of an inept one, you may potentially run into these 6 costly perils.
1. Doing your own negotiation: Knowing when to close a deal is crucial in home buying. Buyers may be too eager to close a deal and agree to a higher price without analyzing post purchase expenses or knowing price range in the area. A seasoned agent will snap the best price out of a seller for you, while adding some freebies.
2. Understanding the Neighborhood: A seller may not disclose to a direct buyer about the lack of amenities or infrastructure in their area. However, agents who specialize in certain communities will have crucial insights about the neighborhood and guide you in obtaining a home at the best location, for a hassle free life.
3. Legal Counsel: A new home buyer may read up as much on the disclosures a seller has to provide but, it is the agents who deal with it on a daily basis who have the checklist at their fingertips. Not knowing what to ask may put you at a risk of not receiving that vital information to be the rightful home owner.
4. A bunkum of papers to deal: Although every home buyer needs to read the wording before the dotted lines, with an authentic agent involved you only have to sign at the X marks during a closure, all pre-verified legally.
5. Mortgage can be tricky: If you are a financial genius, you will find your way through but even then, banking works differently in different cultures. To weed through the mortgage options, you will find a local real estate agent very handy who will also help to get the best rate and terms.
6. Home Inspection is not everyone’s forte: A concerned agent will not let you make a home purchase decision without advising on the types of inspections you should perform. Water pipes bursting, tiles chipping easy, grouting falling and the endless list of housing woes cannot be anticipated unless you are a well-rounded real estate broker.