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Frequently Asked Questions about Snagging

What is a Snag? A snag is a small defect or a problem that is found in a property after the construction is completed. It usually takes the shape of an incomplete/unfinished or damaged work. It might be something like a chipped tile, patched paint job, scratched glass, uneven/ugly terminations, missing door stopper, missing screws, wall cracks …etc. Most snags are usually cosmetic, however the MEP (Mechanical, Electrical and Plumbing) defects are the most serious which would affect your daily life. Improper gas connection, insufficient cooling from the air condition, moisture/humidity inside walls or doors or incorrect electrical wiring connection are some examples of what could be hiding in your property. What is a Snagging Inspection? It is an inspection conducted of a property at the time of the Orientation or Visit invitation by the developer. It is the time a homeowner is allowed to point out any defects/snags found in their property before proceeding for the key handover from the developer. Why do I need a Snagging Inspection? It helps the owner receive technical advice on the condition of the property from all aspects; Cosmetics, Mechanical, Electrical and Plumbing. Thus, ensuring the property is defect-free before taking the key handover. What is covered in a Snagging Inspection? Every part and every item of the property should be inspected without any exclusions. Cosmetics, MEPs, sanitary ware, appliances, furniture (if applicable). For villas and townhouses; water pump room, water tank, manholes, garden area, carport and the rooftop. When do I need the Snagging Inspection? The Snagging Inspection should be done at the time of the Orientation of the property before the handover process is completed with the developer. Why do I need 3rd party Snagging Professionals? Third party professionals have technical knowledge and experience in the construction fields, so you have an expert opinion on your property which helps you get possession of your property in its ideal condition. They would also use their tools and equipment to point out the hidden defects/problems in the property. Equipment like thermal cameras, electrical socket testers, humidity level meter and more will be used for your benefit. How is the Snagging Inspection going to benefit me as an owner? Snagging helps the owner know the defects prior to move in and thereby helps in getting returns on the investment faster. Whether you are an end user, an investor or looking to sell the property, there are benefits to conducting a Snagging Inspection of your asset. As an end user, you will want the property to be in its absolute best condition before moving in with your family. You want to make sure your tenants move into the property without defects to save you the hassle of chasing after the developer or having to cash in for rectifications if you are an investor. Finally, if you are looking to sell your property, a Snagging Inspection/Report will add value to your listing and puts you on the top of the list for a potential buyer. Who is responsible for rectifying the Snags? The developer is always responsible to rectify all the snags and defects. They should also allow you to have a De-snag inspection prior to the key handover. How long do developers take to rectify all the Snags? Every developer has a different timeline and it also depends on the size of the property and the number of snags reported. But the average is about 20 to 30 days. What is a De-snag Inspection? De-snag Inspection is the 2nd inspection which should be conducted after the developer team confirms that all the snags are rectified. It will help you ensure that the defects have actually been rectified the proper way and up to the standard. Is Snagging only supposed to be for newly built properties? A “Snagging Inspection” is usually done for newly built properties. But there are different types of inspections that would cover other requirements such as move-in inspection, move-out inspection and condition inspection. What is a Condition Inspection and what does it cover? A Condition Inspection is needed for the secondary market properties. When conducting a Condition Inspection, the focus would be on the general condition of each item/aspect of the property without exclusions but not on the small details such as scratches and dents which would be covered in a Snagging Inspection. Related articles:1. How To Increase Your Mortgage Pre-approval Amount2. What Should You Do If The Home Appraisal Value Is Lower Than The Offer Price? Stay tuned for more fascinating insights on UAE Mortgage trends:Website | Linkedin | Instagram | Facebook

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Why Should You Invest in Off-Plan Properties?

Dubai has emerged as a global leader in terms of innovation. As a well-connected business hub, it offers great opportunities to many graduates from around the world. Thus, the city has the highest rental yield compared to other countries. Many people are investing in Dubai’s real estate, making it a hotspot. With the increase in demand, investors are now looking to buy off-plan property in Dubai. Before making an investment, it is essential to do proper research on the market. The market trends of Dubai can be easily researched online. After getting to know the market, it is crucial to choose which form of property you want to invest in Ready Property or Off-Plan Property. The main difference between the two is the completion status of the property. Off-Plan Properties Off-Plan Properties are a form of real estate that is not yet constructed. Off-Plan Properties are becoming a popular choice for investors for many reasons. Let us discover what these reasons are: Off-Plan Properties provide flexible payment plans. Since they are not yet constructed, the developers provide payment schemes such as 50% initial payment and the rest 50% on handover, 1% payment per month, or 40% post-handover. The prices are lower when compared to ready properties. This makes it practical and affordable to buy off-plan properties. Also, the property will be completely new, an added benefit of buying an Off-Plan Property. UAE has the best-growing economy in the world. The Capital Gains on real estate is the highest in Dubai. The ROI of the UAE is higher than other countries. Also, the property’s value is most likely to increase once the property is completed. You could sell it while it’s constructing or after construction at a much higher price. This provides financial security to investors who invest in Off-Plan Properties. The ROI you receive in UAE is much higher when compared to the ROI you receive in other countries. This provides a firm base and financial security in this city. It is very important to do your research and find the best off-plan property for yourself according to the forecast of ROI you will receive. This helps in making the right choice of Off-Plan Property. Official bodies like RERA and DLD protect buyers against delays, fraud, or cancellations. One rule is that buyers must make payments for Off-Plan projects at DLD-approved banks. Developers can get the funds only until the project has reached a certain completion stage. These laws make it easier for buyers to trust the institutions and invest in off-plan projects. As Dubai is developing, there is construction taking place in every corner. New communities are being built from Downtown to the outskirts of Dubai. Whether villa or apartment, any location, property type, price point, off-plan property, buyers have many choices. Since there are many choices, you can choose your ideal Off-Plan project here. We at Capital Zone Properties can help you in finding the ideal Off-Plan Property. We have several choices of the best Off-Plan Properties in Dubai. In conclusion, Dubai is a hotspot for investors. They are interested in investing in Off-Plan properties. Off-Plan properties are a form of real estate that is not yet constructed. There are reasons to choose Off-Plan properties: Flexible payment plans and lower prices, capital gains, higher rental yield, buyer protection laws, and a large variety of off-plan projects in Dubai. Therefore, you should select to buy off-plan properties instead of ready properties. Related articles:1. Is A Mortgage Secured Or Unsecured Debt?2. How do Islamic and conventional mortgages differ from one another? Stay tuned for more fascinating insights on UAE Mortgage trends:Website | Linkedin | Instagram | Facebook

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How to make your first home purchase in Dubai

We think it’s important to celebrate when someone buys a home, so let’s work to reduce your worry and prepare you for all the processes involved in doing so. Where should a home buyer begin? The process of purchasing a property involves many steps, from budgeting and searching to viewings and contracts. But ultimately, being prepared is the first step in purchasing a home. Many would argue that purchasing a home is an important life achievement, while others will ramble on about how it is preferable to buy rather than rent. The best time to purchase a home is ultimately when you feel prepared (and the global financial market is looking healthy). If you’re prepared to move forward, we’ve outlined the main checkpoints along the way to house ownership so you can cross everything off your list and take possession of your ideal residence. First-time homebuyers’ guide Prepare your finances It’s crucial to make sure you have the money necessary to buy and afford a property. Being aware of any previous loans you may have and having a credit score above 700 are crucial if you anticipate needing a mortgage. In the event that your credit score is poor, you can attempt to raise it by managing your debt, credit utilization, and bill payment dates. Be mindful of fees The cost of purchasing a home is high, and this applies to more than simply the purchase price. Property fees, bank processing costs, even the pre-title document, will be asked of you. View a detailed overview of all the costs related to purchasing a home in Dubai. Talk to a mortgage expert While doing things on your own and online can be convenient, it is good to have expert support when you’re a first-time homebuyer. Our mortgage consultants can provide you with the right information and guidance on the best mortgage for first-time homebuyers. Create your home wishlist What kind of house would you like to have? Plan design your perfect house, including how many bedrooms it should have, the layout of the kitchen, if it should include a balcony, and whether or not you want it to be pet- or family-friendly. Find your ideal home It’s time to start looking once you’ve determined what you’re looking for. Our platform includes a carefully chosen selection of authentic property listings, and our property advisers are available to offer first-time home buyer help and the crucial house purchasing advice you’ll need to make your property search go smoothly. Start looking for your ideal home in one of the many Dubai communities we have covered. Learn the jargon used in real estate You should feel confident when talking to a real estate agent or even a mortgage broker. So learning some of the real estate lingo will help you not feel confused throughout the process. Some handy terms that will pop up in your home buying journey include: Down payment is the upfront fee you pay as a deposit for your property. It’s a percentage of the property amount. Form F is an agreement that has to be signed by the buyer and seller when purchasing a property. This is an electronic version of a Memorandum of Understanding. Final offer letter (FOL) is a letter, completed post-valuation, stating the amount the bank will lend you, tenor, rates, life insurance, property insurance, and all the relevant information about your transaction. Oqood, also known as pre-title, is the DLD property ownership document given to someone who owns a property that is not yet complete or handed over. Related articles:1. How To Increase Your Mortgage Pre-approval Amount2. What Should You Do If The Home Appraisal Value Is Lower Than The Offer Price? Stay tuned for more fascinating insights on UAE Mortgage trends:Website | Linkedin | Instagram | Facebook

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Home Appraisal Tips For Buyers, Sellers And Refinancers

Appraisals are almost always a required part of the home buying and refinancing process. If you’re buying a home, your lender will order an appraisal of the property to ensure you don’t overpay for the home. If you’re refinancing, an appraisal is needed to ensure that you have enough equity to borrow against. Let’s take a look at what an appraisal is, why lenders require them and some tips for sellers, refinancers and buyers. What Does A Home Appraisal Determine? A home appraisal is an unbiased estimate of what a home is worth. You might hear your real estate agent or lender refer to this estimate as the fair market value of the property. Lenders require an appraisal because they can’t lend more money than the property is worth. Home appraisers are licensed professionals who assess real estate and calculate the worth of a specific property. The appraiser doesn’t work for the lender, and they don’t work for you. By law, they’re required to be a neutral third party in the mortgage transaction. This ensures they’re not biased toward any of the other parties involved. Appraisers consider factors like the home’s location, size and living condition when determining the value. Your appraiser won’t be assessing your home based on your furnishings or paint colors. Instead, they’ll be looking at your home’s structure, appliances and fixtures to make sure there aren’t any defects. The appraisal isn’t the same thing as the home inspection. A home inspector’s primary job is to protect the buyer by identifying any problems the home may have. They’ll test outlets, flush toilets and make sure appliances are in working order, so you know what repairs need to be made. The appraiser, on the other hand, is simply assessing the condition to determine a fair price for the home. What Happens During A Home Appraisal? First, the appraiser visits the home to inspect the property. During this inspection, they’ll walk through the home and take pictures and measurements of each room. They’ll also make notes about the condition and features of the house. Next, the appraiser will select comparable properties to compare the home to. When choosing comparable properties (sometimes called real estate comps), they look for homes similar in location, size and features to the one they’re appraising. The comparable homes usually need to be within a mile of the property (except in rural areas), and they need to have sold within the past 6 months. Home Purchase Appraisal Vs. Refinance Appraisal When going through the refinance process, your lender will order a refinance appraisal, which is slightly different from a standard home appraisal. This step is required because your lender wants to ensure your home’s value is accurate for the new mortgage. However, they won’t focus on broken appliances or fixtures in the house as the lender only needs the fair market value to continue finalizing your refinance. Tips For A Home Appraisal No matter if you’re a buyer, seller or refinancer, there are plenty of ways you can prepare for a home appraisal. While you might feel like you won’t be able to make much of a difference, the following tips could help streamline this crucial process. Home Appraisal Tips For Sellers As a current homeowner, you’ll be able to make the most significant impact on the estimated value of your property. Consider completing the following tasks to avoid getting a low appraisal. 1. Get Your Own Assessment Before you have a licensed appraiser visit your home, you can ask a real estate agent to tour the property. They’ll be able to look at each room objectively and provide you with ideas for possible improvements. It’s also a good time to double-check health and safety features, like smoke and carbon monoxide detectors, security systems, cameras or any fireplaces that may be in the home. Make sure to run your HVAC system as well and get it serviced by a professional technician, if you haven’t done so already. 2. Research Possible Comparables If you haven’t already researched the local real estate market, now is a perfect time. Take the opportunity to look at public records in your local assessor’s office for any recent sales that took place in the last 6 months. There’s a chance your agent has already done this when they created a comparative market analysis (CMA). So, if you’re having a hard time finding similar properties, you could ask them to provide you with some MLS listings to look at. 3. Complete Small Repairs Since you’re currently in the process of selling your home, there’s no need for you to make major repairs unless the buyers require it after the inspection. In most cases, you can primarily focus on aesthetics at this point in the appraisal process. Your goal should be to make the home look spotless. That could mean painting scuffs marks on the trim, tightening crooked handles and knobs, patching holes in the wall, emptying the gutters or even power washing the siding. Whatever you do to make the home feel well-maintained could increase the appraised value in the long run. 4. Do A Deep Clean Besides repairing minor defects, you should also tidy and declutter your home. Removing extra pieces of furniture or putting away unnecessary items can help your house feel bigger, no matter what its square footage is. Countertops should be cleared off and polished or resealed. You can hang up new artwork or mirrors to reflect the sunlight in darker rooms. If your curtains are looking dingy, you should also replace them. As long as you’re able to create a bright and clean home, the appraiser will be able to better see and appreciate the property’s unique features. 5. Make A List Of Offers If you received multiple offers on your house, you could use them as evidence of your home’s current value. Getting several bids shows that your property’s sale price was appropriate for your area, which may help the appraiser determine its present worth. Home Appraisal Tips For Refinancers Even though you’re not selling your home, it doesn’t mean you should

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What Should You Do If The Home Appraisal Value Is Lower Than The Offer Price?

The process of buying a home has a lot of different steps. It can feel like a juggling act, trying to maintain momentum and make sure every piece of the process comes together. Appraisals can be especially nerve-wracking given how they can affect your mortgage and whether the sale is completed or falls through. We’ll help you understand the impact of a low appraisal and discuss your options if your home or the home you’re buying receives a low appraisal. We’ll also cover scenarios that occur when an appraisal comes in low, and provide tips for buyers and sellers to navigate this situation. Let’s start by breaking down what a low appraisal means. What Does A Low Appraisal Mean? A “house appraises low” if the value assessed by the home appraiser is lower than the purchase price agreed to between the buyer and seller. The appraisal provides a snapshot of the appraiser’s opinion of the current market value based on similar closed sales in the area. When the appraised value comes in below the contract price, it limits the amount a lender will finance because they base the loan on the appraisal. A low appraisal might delay or even derail your closing. What Causes Low Appraisals? When a low appraisal occurs, it’s important to ask what information was used to determine that value. It’s important to confirm that the most recent information on comparable properties was used. This is especially true in competitive markets, since homes can regularly sell over asking price. Keep in mind that the appraiser can only use sales that have closed, and that they should choose comparable that are as similar in gross living area, bedroom/bathroom count, and location as possible. An appraisal could also come back low if an appraiser leaves out information on significant home improvements or cannot find adequate comparable in the area. What Are Some Common Appraisal Problems? Low appraisals can be a problem in neighborhoods with homes that are rapidly appreciating. That’s because homes in overheated real estate markets have appreciated in value so rapidly that comps might not reflect the prices sellers are currently being offered. Another common appraisal problem occurs in rural areas, where homes and properties can’t easily be compared to one another. There are many factors that can hurt a home appraisal, such as the home being in a specific neighborhood, school district and varying market conditions. Know that, if your appraisal comes back low and you think it’s inaccurate, there are ways you can appeal. What Happens If The Appraisal Is Lower Than The Purchase Price? If an appraisal comes in lower than the purchase price when a property is being bought, it can be bad news for the buyer and the seller. When an appraisal comes in low, the buyer’s mortgage lender will not lend more than the appraised value. Another part of why lenders do not exceed the appraised value has to do with loan guidelines. Lenders use the appraised value to calculate your loan-to-value (LTV) ratio. How To Negotiate With A Seller After A Low Appraisal Sellers don’t want the sale of their home to fall through, and they know that if a home appraises low it will be difficult to get the price they’re asking. On top of that, if there’s an appraisal contingency in the purchase agreement, a buyer can back out of the sale no questions asked without losing their earnest money deposit. In this situation, negotiating is the best option for the buyer and seller. Here are a couple things you can do to start negotiations: Tips To Avoid A Low Appraisal While low appraisals may be uncommon, they do occur. It’s best to be prepared for the possibility of this situation so you’re not caught off guard. Whether you’re selling or buying, be prepared. Review these home appraisal tips so you know what to do to keep the process moving and not have the transaction fall through. Tips For Sellers The work you can do as a seller to avoid a low appraisal is all about being prepared. Make it easy for the appraiser and be engaged in the process. Here are some tips on how to start the process on the right foot: Tips For Buyers If you’ve signed a purchase agreement and put in your good faith deposit, you’re already invested in the property. It can really wreck your plans if the appraisal comes in low and you don’t have a back-up plan in place. Being ready for this possibility will make the process smoother should a low appraisal scenario occur. Here are some tips on how to deal with a low appraisal: Related articles:1. ADVANTAGES OF BUYING A HOME OVER RENTING2. Can My Spouse Help Cosign My Mortgage? Here’s How! Stay tuned for more fascinating insights on UAE Mortgage trends:Website | Linkedin | Instagram | Facebook

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Is A Mortgage Secured Or Unsecured Debt?

In general, loans fit into either the “secured” or “unsecured” category. But what exactly is secured vs. unsecured debt? And is a mortgage secured or unsecured debt? It’s a good idea to understand the differences between these two types of debt because it can have a major impact on the loans you choose and how you fulfill your financial obligations as a borrower. Secured Vs. Unsecured Debt Secured debt is backed by collateral, or assets that you have in your possession. Mortgages, home equity lines of credit, home equity loans and auto loans are four examples of secured loans. Put simply, your lender will ask you what type of collateral you’ll “offer up” to back the loan. It’s a great incentive to encourage you to make your payments. Unsecured debt, on the other hand, is not backed by collateral. Examples of unsecured debt include personal loans, credit cards and student loans. Collateral As a borrower, collateral is an asset or property that you offer to your lender as security for a loan. A lender has a lien on this asset, which means they have the legal right to seize and sell your collateral to pay back the loan if you do not fulfill your obligations as a borrower (i.e., if you do not make your monthly payments). The lien stays in full force until you fully repay your loan. Risk Level A lender considers an unsecured loan riskier than a secured loan because they can only rely on a check of your credit score and the fact that you’ve agreed to repay your loan. As a result, to qualify for an unsecured loan, you often must have a higher credit score and often must accept a higher interest rate to qualify. Your credit score is a three-digit number that proves how consistently you’ve paid back debt in the past and how well you currently handle debt. Credit scores range from 300 – 850. The higher your score, the more likely it is that a lender will want to work with you. Your interest rate is the rate charged to you as a percentage of the principal, or original amount, of your loan. Requirements Unsecured loans typically have more stringent requirements for borrowers because of the risk to the lender. This means it’s usually harder to qualify for an unsecured loan, but that also does depend on individual borrowers’ qualifications. However, it’s worth noting that if you’re trying to rebuild your credit or have a lower credit score than you’d like, you may have an easier time getting a secured loan. Is A Home Loan Secured Or Unsecured Debt? Is a mortgage secured or unsecured debt? Mortgages are “secured loans” because the house is used as collateral, meaning if you’re unable to repay the loan, the home may go into foreclosure by the lender. In contrast, an unsecured loan isn’t protected by collateral and is therefore higher risk to the lender. In the same vein, second mortgages are considered secured debt, which means that they have collateral behind them (your home). What About Home Equity Loans And Home Refinances? A home equity loan is a type of loan that enables you to tap into the equity of your home to borrow money. They are often called second mortgages because you have two loan payments to make – your original payment and your second mortgage payment on top of that. A home refinance means you get a new home loan with different terms. For example, you might swap out your 30-year mortgage for a 15-year one. You might also decide to go for a lower interest rate. We mentioned earlier that home equity loans, and home refinances are considered secured loans. They are both secured loans because in both instances, you put your home up for collateral. Are Interest Rates Lower On Secured Or Unsecured Debt? Interest rates are generally lower on secured loans because the lender inherently assumes less risk for a secured loan. What Happens When You Can’t Pay Off A Loan? If you can’t pay off your home loan, what actions will your lender take? Secured Loan If you have too many delinquent payments with a secured loan, your lender will file a notice of default on your property. A homeowner can take advantage of time to work out a payment plan with the lender before they get to the foreclosure stage. However, after too many missed payments, the bank will become the owner and will try to sell the property for an amount necessary to pay off the outstanding loan amount as well as costs associated with the foreclosure and sale of the property. Unsecured Loan Since unsecured loans don’t require collateral, the lender has to take an alternative recourse. They have the right to report your delinquent payments to the credit reporting agencies, file a lawsuit against you or send your account to collections. If you think you can’t make payments for a secured loan, it’s a good idea to talk to your lender before you think you’ll run into trouble. Related Articles Best Way to Get a Loan Against Property in UAE Increase Your Mortgage Pre-Approval Amount

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