Real estate is one of the most expensive and important assets you can buy. It is rarely affected by temporary ups and downs of prices on the market and features stability and security. Investors take advantage and make great money on property resale. However, sometimes dubai apartments for sale can sell for less than their real value. Most often, an attractive price hides serious shortcomings of the housing, or simply you are dealing with scammers. Still, the reasons why a home is sold at a low price may be different, including quite legitimate.
Let`s explore five legitimate reasons why this can happen.
1. Low demand in the market
One of the main reasons why properties can sell lower than their real value is low demand in the market. If there are few buyers in the real estate market, sellers may lower the price to attract more potential customers. This can happen, for example, during times of economic downturn or crisis.
2. Condition of the property
Another reason why a property may sell for less than its real value is the condition of the property. If the property is in need of repair or updating, this can reduce its value. In such cases, sellers may lower the price to attract buyers who are willing to invest extra money to repair or update the property.
3. The urgency of the sale
The urgency of sale also influences the price of an apartment. If sellers need to sell a property quickly, they may lower the price to attract more buyers. This can happen, for example, if sellers are moving to another city or country or if they need money to solve financial problems.
As a rule, neither seller nor buyer rush to make the deal. They prefer to negotiate and reach a consensus suitable for both parties. When a seller faces financial duress, there is no time to wait. The circumstances force the homeowner to get money as soon as possible.
4. Market conditions
Price setting greatly depends on market conditions. For example, if there are many similar properties on the market, sellers may lower the price to stand out from the competition. It is a frequent situation when a foreign businessman has invested in new homes or apartments built in the same area.
This approach is dubious as many buyers may become suspicious about the low price of a luxury property and consider it a scam.
5. Ignorance and lack of awareness
Finally, another reason why a property may sell for less than its real value is a lack of awareness by sellers or buyers. If sellers don’t have enough information about the market value of a property, they may underestimate its price. On the other hand, if buyers do not have enough information about a property’s condition or history, they may overprice it.
Seller`s ignorance prevents them from knowing the real worth of their property and makes the owner request for less money. Such sellers are not aware of the beneficial advantages of their property and great investment potential.
How to determine the real worth of property in Dubai?
In Dubai, people decide how to evaluate, buy and sell real estate. The real estate agency AX CAPITAL offers professional real estate valuation based on several parameters:
- Quality of real estate and its location.
- Real estate value.
- Average rental cost.
- Cadastral and market value.
- Market indicators.
Contacting real estate agency in Dubai, you can not only determine the real worth of your apartment and resell it profitably, but select an even more beneficial option to invest again. Ask for assistance and obtain the best performance in selling and buying property in Dubai.
In conclusion, there are multiple scenarios under which properties can sell for less than their real value. Some are related to market conditions and market demand, while others are related to the condition of the property or the seller’s situation.
When choosing a property, it is always important to conduct an in-depth research and evaluate all the factors that can affect its value. It is advisable to be more watchful and responsible to seize the opportunity to increase your capital.