Jun 13 2012
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You can inspect foreclosed Dubai properties ahead of auction
The only thing he does is to check out on the exact location of the property once the details are published.
"I have rarely checked (inspected) the properties... what I do is I just go to check out the location. And if I like the location, I go and buy the property," he told Emirates 24/7.
Two months back, he bought was a villa in the Springs community for Dh2.32 million, 16 per cent more than the reserve price.
"I am confident that villa prices will increase. I am not going to sell it less than Dh3 million," he mentions.
A number of brokers, who bid at the auction on behalf of the actual buyers, say that most the buyers they represent don't reside in the country
"We don't think these bidders ever inspect the foreclosed properties. We are just told to bid within the given limit... the onus of inspecting these properties beforehand is on us," they say.
Ashraf Sayed, Associate, Hadef & Partners, says bidders of auctioned properties should consider carrying out inspection checks.
"Bidders can request access to the property through the Dubai Land Department ( DLD ) if the property is not tenanted and the DLD will subsequently request access from the relevant bank."
He counsels there are several companies in Dubai that offer such services and provide the prospective new homeowner with a detailed report on the property's condition and any defects.
"We further recommend the property is inspected prior to the auction to consider any additional costs that might be required by the successful bidder for purpose of possession/leasing to third parties (i.e. painting, landscaping etc)."
Although foreclosed property auctions in the UAE are in their infancy, most of the properties at the auctions were successfully auctioned, with bidders paying five to 40 per cent higher than the reserve price.
"We believe further clarity, standardized auctions documents and public awareness will further help the success of foreclosed property auctions," Sayed states.
In April, Emirates 24/7 first reported that the DLD would be auctioning nearly 80 properties in 2012 with most of the properties located in Jumeirah Beach Residence, the Greens, Dubai Marina and Downtown Dubai. In 2011, the department had auctioned only 35 freehold and non-freehold properties. Only nine properties were not sold.
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