So you are ready to sell your property? Have you paid off your mortgage? Is the price you have set realistic? Will prospective buyers be able to make it to the viewing timings you have allotted? There is a lot to think about when you are selling your property. Use our handy guide to ensure you are prepared for your upcoming sale.
Determine your objective
Decide what your objectives are - whether they are to move quickly or achieve the best price. This will then reflect how much time and money you may need to spend in preparing your property for sale.
Get your commercial space in perfect condition
Make all necessary repairs before putting your property on the market. Most buyers want to buy commercial property that’s in 'red ribbon deal' condition without having to arrange for fix-up work.
Be aware of the time frame
The entire selling process could take anything from a couple of weeks to a year or longer.
Market your property
Find a buyer and prevent void periods by marketing your property across a wide range of media avenues. Get access to the best tools to market your property. Take photographs, measure the property, decide what is to be included in the sale and identify the key features. Focus on the positive aspects of the property, i.e. excellent location, air conditioning, useable space and parking.
Understand your price
Understand at what price properties similar to yours are selling for. Remember that prices advertised and prices sold at are different. Set realistic prices to avoid delays on generated interest.
Be flexible with viewings
Ensure flexibility of viewing timings to increase the speed of the selling process.
Evaluate your potential buyer
It is worthwhile establishing from the purchaser the following so that you are aware if there maybe anything that is likely to hold the sale. For e.g. are they a cash purchaser or they getting a mortgage? If a mortgage, what deposit are they putting down?
Organise your paperwork
Check with your consultant for all the necessary documentation.
Pay off your mortgage
Produce a liability letter from the bank that you have the mortgage on your property with. Once you do, the buyer's bank will then arrange to pay off your mortgage. You may be asked to sign a few documents pertaining to authorising your bank to accept the settlement of the loan and instructing the bank to release the property documents once the mortgage is settled. The buyer's bank will pay off the mortgage while your bank issues the clearance documentation.
Transfer of Ownership
The next step is to submit a copy of the NOC to the buyer's bank. The bank will then take about 2-3 days to prepare the final documentation for the property transfer. You would then need to meet with the buyer, the buyer's bank, agent and the mortgage consultant at the developer's office (if it is a property under construction) or at the Dubai Land Department to initiate the transfer.
If the buyer's bank issues a guarantee letter, you will receive the cheque for any additional payment a week later. The buyer's contribution will be paid to you through a manager's cheque.