Luxury One Real Estate August 18, 2022 0 Comments

How Do Real Estate Agents Determine Property Values?

When shopping for houses for sale in Dubai, the first thing a buyer considers is the price of the property. While the layout, quantity of rooms, location, and available amenities are all important, the price is what draws the buyer’s attention the most. This is why sellers pay close attention to the price they set for their home. Particularly in Dubai, where sellers face strong competition. Most property sellers consult with real estate agents to evaluate the value of their property. In order to decide the price, the agents undertake a comprehensive investigation of the property and consider a variety of other factors. With that stated, let’s take a closer look at the full property valuation process as performed by real estate agents:

  • Home Inspection in Dubai: The Procedure for Determining Property Prices

In most situations, evaluating property prices in Dubai begins with a comprehensive home assessment. Needless to say, setting a competitive price for a house with peeling off paintwork, broken cabinet knobs, leaking pipes, inadequate insulation, and a dated overall appearance is not realistic, even if it is in a top location in Dubai. On the other hand, if the next house with the same configuration and location is preserved in immaculate and presentable shape, it will be significantly more expensive. This is why real estate brokers frequently advise sellers to make specific improvements. This increases the likelihood of the Dubai property being sold at a premium price.

  • Property Types in Dubai

It is yet another important factor influencing home prices in Dubai. Agents do not set a high price for a tiny property, such as a studio apartment, because purchasers are not prepared to pay a premium price for these properties. Agents also charge more for larger and more spacious property units, such as villas and townhouses, as well as penthouses for sale in Dubai. Having said that, there are specific places in Dubai where even smaller flats are valued significantly. So there may be some exceptions here. Aside from that, the ‘luxury or non-luxury’ component enters the picture. Agents prefer to set a premium price for luxury houses with contemporary facilities, even if they are located outside of the centre of the city. Standard properties, on the other hand, are rather inexpensive. The same holds true for equipped and unfurnished houses.

  • Previous Sales

To establish the worth of a property in Dubai, real estate brokers often undertake a comparative market analysis. To do so, they collect data and statistics from many sources. This information is then collected to calculate the price per square meter. This gives them a foundation to work from. Then there are other considerations, such as the property’s condition and furnishings. Buyers typically conduct extensive research on the region and average property prices before ever visiting the property. As a result, before determining property prices in Dubai, agents look through the area’s sales history. Typically, evaluating sales over the preceding six months is enough to establish the pricing. It gives them important information about how much the buyer is willing to spend for houses in that location.

  • Market Developments

Market trends change over time. Some are expected, while others look entirely unexpected. No one predicted COVID-19 and its influence on the real estate market, for example. Several post-COVID trends have evolved in the Dubai real estate business. The demand for flats and tiny living spaces has decreased, while the number of inquiries for villas and townhouses has increased. Furthermore, the introduction of a new development in a region alters market trends. For example, if a new hotel or tourist attraction is planned in a region, it will almost certainly increase in popularity. This has a direct influence on demand and property prices. This is why real estate brokers in Dubai tend to consider market trends when deciding property pricing.

  • Neighbors and Neighborhood

It is well known that the location of a house is quite important when determining property prices in Dubai. However, the residences or developments surrounding it are frequently overlooked. This, however, is a necessary step in the property appraisal process. If your property is located adjacent to an under-construction project that will take a long time to finish, the value of your home may suffer. As a result, the developers will not make the price too high. Similarly, if it is near a market or a family with noisy neighbors, don’t expect to earn a premium price for your property.

While the previously mentioned elements may lead you to believe that you can evaluate the value of your home on your own, this is not a sensible option. Real estate professionals are well-versed in the property sector. Furthermore, by using their resources and experience, they may forecast market developments and their potential consequences. So, to summarize, sellers should use real estate agents. Apart from establishing the property value, they may also assist in selling it quickly and at a reasonable price.

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