Best Places to Live in Dhaka for a First Time Visitor

If you are moving to a new city, one of the first things you need to ensure before setting foot on foreign soil is to find suitable accommodation. Once you’ve decided on a city to move to, you’ll need to invest quite some time in finding a proper neighborhood. Unless you’re already familiar with your new destination, the step of choosing the proper neighborhood may demand unfathomable time and effort on your part. Depending on whether you will be staying for a short or a long period of time, there are a number of factors to take into consideration. Before making a big move, consider not just your finances but also the area’s environment, safety, proximity to your workplace, social amenities, transit options, schools, and recreation facilities, among other things. After all, moving into a bad neighborhood unintentionally will only increase your misery. All of your positive experiences will be overshadowed by the negative ones you may have in a neighborhood that turns out to be a terrible choice for you and your family.

A neighborhood can have an enormous impact on your and your family’s lifestyle. You also need to take into account the preferences of your family members while making the decision. So, research thoroughly beforehand and make a list of the pros and cons. and cons of each neighborhood that has been caught on your radar. In these cases, a good real estate agent can help you a lot in finding out the benefits or drawbacks of a particular area. Meanwhile, if you have been thinking of moving to Dhaka for the first time, it might be even harder to find the right neighborhood. Despite being one of the major metropolitans of South Asia, Dhaka’s population of over 20 million makes it challenging to maintain a comfortable standard of living. A significant portion of this city has been built without much planning, leading its habitants to suffer year after year. So, finding a good neighborhood in this metropolis is not an easy task. Even so, there’s no need to panic! Due to being the country’s capital, Dhaka attracts foreign investors and is already home to many expats. Moreover, the demand for healthy housing amongst the affluent and civilized portion of the population has led to the development of several attractive residential neighborhoods all over Dhaka. For your convenience and to help you save time, here we have compiled a list of the best areas to live in Dhaka.

Best residential Place in Dhaka

Gulshan

Gulshan, Dhaka’s most upscale neighborhood, was primarily developed for diplomatic as well as residential purposes. You may expect Gulshan to be the most popular neighborhood for foreigners living in Dhaka. In addition to the fact that almost all foreign embassies and high commissions are located across Gulshan, the neighborhood’s standard of living is also higher than almost all the other areas of this city.

As you go through this area, you’ll find luxurious apartment buildings embellished with first-class amenities. It is, without a doubt, the city’s cleanest neighborhood. Apart from this, Gulshan has a lot to offer in terms of making your stay more comfortable. At Gulshan, you’ll find only the best for everything from education to amusement to healthcare to other aspects of daily life. To make sure your child gets the best education, you can choose from a wide range of well-known institutions with a reputation for excellence and international standards, such as Scholastica, Sidney International School, Faith International School, etc.

For recreational purposes, Gulshan offers several parks and lake-side recreational spots. Several exclusive private clubs, such as the Gulshan Club, the Canadian Club, and others, offer their members excellent opportunities to spend their time. Gulshan is also home to the highest number of 5-star hotels in Bangladesh, including the Westin, Six Seasons, and more. In addition, restaurants such as Nandos, Gloria jeans coffee, White Canary café, and others provide food on par with that seen in other countries. You may find anything from groceries to designer clothes at several marketplaces across the area, including Gulshan DCC, Police plaza, Pink city, and others. Labaid, United Hospital, and several other top-notch healthcare institutions can be found in this area. Additionally, there are a lot of well-planned public transit choices to choose from. Let’s take a quick look at the shortlist of pros and cons of this lavish area :

Advantages

Luxurious apartments with top-notch modern amenities
Excellent healthcare facilities
Reputed private educational institutions
Several good choices for recreation
Popular international restaurants
Well-planned public transportation
High-end security and a serene environment

Disadvantages

Extremely expensive apartments
Fewer alternatives for cheap food
Lack of public educational institutions
Lack of cheap public healthcare

Baridhara

Separated from Gulshan only by a lake, Baridhara offers almost all the top-notch facilities Gulshan provides. Unlike Gulshan, which is more commercial in nature, this region has a more domestic feel to it.

Baridhara is home to a huge number of defense officials, high commission and embassy officers, expats, and foreign tourists, therefore, the living and security standards are unquestionably excellent. It’s a beautiful place to live, with luxurious apartments and building complexes. The roads and traffic are in excellent condition and well-monitored at all times. Security protection is very tight here – checkpoints at each entrance and 24/7 police surveillance are strictly regulated. Local transportation is scarce here due to strict security rules, but as it is within walking distance of major roads, this lack of public transportation will not be an issue.

Baridhara’s educational institutions include Cambrian School, American International School, etc., which offer great facilities for both Bangla and English curricula. Within its highly secured zone, Baridhara also offers shopping complexes like the Anannya shopping complex and other big super shops for its residents to use. Several hospitals in the area, such as United hospital, Baridhara general hospital, etc., may meet your needs for high-quality healthcare. Lake-side recreational spots and exquisite clubs here will give you ample choices to keep yourself entertained.

Advantages

Sophisticated accommodations
Top-notch security protection
Serene and calm environment
Offers all high-end facilities
The clean and polished area
Less traffic because of strict traffic regulations

Disadvantages

Expensive living standard
Lack of public transport facilities
Fewer options for restaurants
Very few shopping places

Bashundhara R/A

Bashundhara R/A, which is situated adjacent to Baridhara, offers even more cutting-edge amenities for a residential neighborhood. This area’s calm and picturesque view makes it an excellent location to live.

Bashundhara, like Gulshan and Baridhara, provides top-notch security with checkpoints at every entrance and tight security surveillance. Small villas, duplexes, apartment complexes, and even bungalows may be found in this neighborhood. If you’re moving to Dhaka for the first time, this neighborhood offers a wide variety of housing options that are priced to suit a wide range of budgets, either for buying or renting. Residents in Bashundhara have access to a wide range of services and amenities. The presence of rickshaws makes it easy to get around the neighborhood.

Several renowned educational institutions are located here for your child’s excellent education. Viqarunnisa Noon School and College, HURDCO International School, Ebenezer International School, and many other institutions provide the best facilities for educational purposes. And the cherry on top is that three reputed private universities in the country – North South University, the Independent University of Bangladesh, and the American International University of Bangladesh, are all located within a few blocks of each other in this area. One of the leading hospitals in Dhaka, Evercare Hospital, is situated in Bashundhara. From diagnosis to treatment, Evercare hospital has the best facilities for your healthcare needs.

The world’s third-largest shopping mall, the famous Jamuna Future Park (JFP), is located in Bashundhara and offers products from top international. The amusement park in front of JFP is an excellent recreational spot for people of all ages. Furthermore, JFP’s gaming corner and the Blockbuster cinema complex are great places to unwind and have fun. Bashundhara is home to a massive retail mall as well as several high-end supermarkets and superstore chains, including Mehedi Mart and Bazar Sharabela. Many good-quality restaurants and fast-food chains are operating their business here, serving great quality foods at various pricing ranges.

Advantages

High security and maintenance
Well-planned transport facilities
Best for shopping
High-quality educational services
Good healthcare facilities
Great place for amusement and recreation
Eye-soothing scenic views
Gives off foreign vibes

Disadvantages

Expensive accommodation
Located on the outskirts of Dhaka
Intracity traveling to other places can be very time-consuming

Banani

To the west of Gulshan, Banani is a strong candidate for the title of the best neighborhood in our capital city. Banani has a fair share of exclusivity to offer when it comes to choosing a living place. Banani boasts some of the city’s most well-developed streets at the moment. The entire neighborhood has been carefully developed to include both business and residential zones. Few embassies and many important business organizations are located in this area, making it one of the corporal hubs of Dhaka. Banani is a popular choice for employees who want to be close to their workplaces in order to save time. From apartment buildings to high-rise structures, Banani offers exquisite housing with modern amenities. Read this article on a guide to buying a new house in Dhaka before you jumpstart your endeavor. Rickshaws and air-conditioned buses like Dhaka Chaka and Gulshan Chaka are available for local transportation. These buses not only run within Banani but also to and from Gulshan-2 and the surrounding areas.

If there’s one place in Dhaka to take a foodie who loves to indulge, it’s Banani. Ranging from traditional to international cuisine, Banani has to offer abundant restaurants, fast food chains, and a wide variety of cuisine outlets. The affordability of these restaurants also serve both the affluent and middle-income. Not only restaurants but 5-star hotels such as Intercontinental Hotel, Hotel Tulip, etc., are also located in Banani. Banani Supermarket, Bangladesh-UAE Moitry retail complex, branch outlets of reputed brands, and many more chain shops serve the purpose of shopping for all sorts of necessities. Though Banani lacks top-notch healthcare services right around the block, there are still diagnostic centers like Prava Health, Banani clinic, etc., providing healthcare amenities.

Advantages

High security and road maintenance
Modernized accommodation facilities
Quality education
Banani lake for ample recreation
bundance of playground facilities for children
Both luxurious and affordable restaurants

Disadvantages

Lack of good quality hospital facilities
Expensive accommodation
Fewer options for intercity transportation
Expensive shopping centers

Dhanmondi

Dhanmondi is one of the old neighborhoods of Dhaka city. Since the 1950s, Dhanmondi has grown steadily, evolving into a trendy neighborhood. If you’re looking to live in a relatively cheap but modern area than the luxurious places described above, go no further than Dhanmondi. To begin, Dhanmondi features well-constructed infrastructure and wide, well-planned streets. Dhanmondi is home to lavish residential buildings, aesthetically pleasing structures, and even some historic structures. Top-quality educational institutions, for instance, Scholastica, MasterMind, Oxford International, and many more are rooted here. This area is home to several prestigious educational institutions, including Dhaka College, one of Bangladesh’s oldest colleges, as well as Bir Shreshtha Noor Mohammad Public College, Dhaka City College, ULAB, and Stamford University. Dhanmondi has a wide range of healthcare facilities, including Labaid Specialized Hospital, Medinova, Ibn Sina Hospital, Bangladesh Eye Hospital, and Bangladesh Medical College.

The Dhanmondi lake, however, is by far the most popular tourist attraction in Dhanmondi. It’s one of the city’s most popular hangouts. This long, vast greenery on both sides provides recreational facilities such as speed boating, small restaurants, and street foods. Rabindra Shorobor is located on the lake’s shore, where various events and performances are held from time to time. You may relax your body and mind just by sitting on the edge of this lake or walking along the pavement next to the lake. Dhanmondi also has the Star Cineplex, where people can go to watch movies on the weekends for fun. Restaurants of different kinds can be found in Dhanmondi, and they vary from traditional to international food. As one of the nation’s largest foodie hotspots, it is seeing an unprecedented influx of new restaurants open their doors. For shopping, Dhanmondi is heaven for shoppers. Excellent collections from different brands are available at affordable prices in Shimanto Square, Anam Rangs Plaza, Rapa Plaza, Shimanto Sombar, Metro Shopping Mall, etc. There are plenty of rickshaws and other public transit options available to get around.

Advantages

Tasteful apartments with good facilities within a more affordable range
Quality education for all levels of students
Best healthcare facilities
Lakes, clubs, cinema halls for entertainment
Shoppers’ heaven
Best place to try out different cuisines
Public transportation facilities

Disadvantages

Expensive for lower-middle-class incomed
Traffic congestion during school hours
Usually crowded because of various recreational facilities (lake, restaurants, shopping malls)
A negligible amount of hotels

Summary

Finding a new neighborhood to live in Dhaka is both exciting and stressful. There are diverse types of neighborhoods in this always-happening capital city, so it can be difficult to narrow down your options. However, after careful homework and considering the kinds of things you really care about (like transport, cost, environment, restaurants, etc.), you may find the perfect option for you and your family.

F.A.Q.

How hard is it to find suitable housing in Dhaka?

Ans: Finding suitable housing in Dhaka can be pretty challenging. To make this process less stressful, you can contact professional real estate agents to guide you through the whole journey.

Is living in Dhaka cheap or expensive?

Ans: The accommodation cost in Dhaka can vary from neighborhood to neighborhood. However, compared to other western metropolitans, Dhaka is relatively cheaper for living.

What should I check before buying a Flat in Dhaka?

Ans: Follow this article to know about the important things to check before buying a flat in Dhaka.

Which area of Dhaka is best for educational institutions?

Ans: Dhaka’s educational hub, Dhanmondi, is home to several of the country’s most famous schools, colleges, and universities.

Is Real Estate a Good Investment in Bangladesh?

People usually put their savings into different areas where they think they can get a good return in the future. Investors may choose from a wide range of possibilities, from stock markets to bonds and mutual funds, to real estate investments that will increase in value over the years. However, not all investment options may provide the same level of expected return in the long run. Moreover, you may lose a lot of your savings and investments if you’re caught in the middle of a socio-economic catastrophe. To avoid losing your hard-earned cash, you should only invest in secure options with the least risk while yielding the best return. In light of these facts, it’s no surprise that real estate has long been regarded as one of the best ways to invest, not just in Bangladesh but across the world. Investing in Bangladeshi real estate may be on your radar for some time, but you’re still unsure about the long-term return on your investment. Don’t worry about it! Read this article to get an overview of the reasons to invest in real estate in Bangladesh.

A Permanent Shelter

Most of us have a long-term goal of owning a home of our own. While many of us have permanent homes in rural areas, we all desire a permanent roof over our heads in the nation’s major metropolises like Dhaka, Chittagong, or Sylhet. As the nation’s industry and urbanization are mostly based on these cities, the need for a permanent residence inside these cities’ boundaries is understandably strong. Many of the difficulties associated with finding a suitable place to live are resolved when a person’s demand for permanent housing is met. Furthermore, saving money on renting an apartment might significantly lower your monthly expenses. Beginning your career with the intention of making investments in real estate holdings is an excellent method to build a solid foundation for one’s future financial stability.

Predictable Cash Flow

Renting out your investment property as a business or residential space is a suitable option if you aren’t planning on occupying it yourself. It ensures a regular stream of money. A couple of years is all it takes to pay off your real estate investing debts, even if you borrow money to get started. Afterward, you’ll have a home in Dhaka and a potential source of revenue from the property. As the population of Dhaka grows, so will the city’s need for more housing. Moreover, a property’s rent will climb with time if it is located in a well-known region like Gulshan, Dhanmondi, or Bashundhara. As a result, the more money you put into real estate, the more monthly fixed income you’ll be able to get.

Continuous Increase in Value

Broadly speaking, the value of property always goes up with time. In most cases, if your property is located in an area where significant infrastructure development is expected in the future, the value of that property can skyrocket overnight. In addition, properties in prominent business and residential areas tend to see a growth in their value over time. Interestingly, properties usually go through this increase in value even if they remain in the same condition they were in when they were purchased. You wouldn’t need to do anything further to raise the value of this property. When it comes to investments, real estate holdings provide the highest return on your money. So, with Bangladesh’s booming economy, real estate investing is a tremendous way to make a lot of money.

Heavier Return

The above points emphasize that real estate holdings may provide a steady stream of revenue while also appreciating in value. Real estate investing has the highest potential for value return when compared to other investment options like the stock market, mutual funds, or bonds. Stock markets are very tough to predict, and during an economic crisis, they can hit a low point. A financial crisis can have a negative impact on the value of bonds and mutual funds, as well. However, even amid a financial crisis, there will always be a demand for housing. So, Investing in real estate carries the lowest risk of financial loss. Because of this, the return on investment in real estate is substantially higher than any other sort of investment.

Lower Initial Investment

When investing in the stock market, a large sum of money is needed upfront in order to get a healthy return. In contrast, you don’t need to have crores of money in savings to invest in real estate. Instead, you can easily get a loan from a bank or other financial institution to put money into real estate. While the idea of taking loans may put you off, it enables you to invest in a permanent property even with a meager income. As tedious as it may be to put money aside each month to pay off a loan, after you have paid it all off, the property will be solely yours, ensuring you a fixed cash flow for years to come. Follow this step-by-step guide to buying a new property in Dhaka.

Inflation Adjustment

For any country, whether it is one that is already highly developed or one that is still in the process of developing, inflation may be a nightmare. It is possible for the value of your assets to be reduced overnight, whether they are cash in a savings account or stock market or raw minerals like gold or silver. Properties, however, such as land and residential or commercial buildings, are almost always trending in an upward direction. Even amid inflation, the value of these sorts of properties rises instead of falling.

Source: Freepik

Opportunity to Leverage

Leverage in real estate refers to taking home loans in order to increase the rate of return on your investment in real estate. If you don’t have the money to buy a property altogether, you’ll be utilizing leverage by borrowing money to grow your equity in the property. Say, for instance, that you have 20 lakhs BDT in the bank. You could decide to put all of that money into an investment property. In two years, the value of the property goes up by 10%. Your original investment of 20 lakhs BDT is now worth 22 lakhs BDT.

Now, let’s have a look at a different situation where we bring leverage into action. In this case, you might put your 20 lakhs BDT as a down payment on a house worth one crore BDT. You borrow the remaining 80 lakhs from a bank. The property’s worth has also climbed by ten percent in the intervening two years. Now, if you sell this property after two years, you’ll have made 10 lakhs BDT in profit. As a result, you were able to take advantage of other people’s money in order to make a profit of your own.

Equity Buildup

In the previous section, it was said that using leverage to invest in real estate also lets you build up your equity in that property. Equity is how much of your home you really own after you have been paying your loans for a certain period of time. Calculate the difference between the market value of your house and your loan debt to determine your equity. Please consider the previous example of an 80 Lakhs BDT fixed-rate loan for a better understanding. Considering the property’s worth at the time of acquisition, the loan amount indicates an 80% loan-value ratio. As a result, the investor had 20 lakhs in equity at the time of purchase, or 20% of the property’s worth. The investor would have returned 63.35 lakhs BDT of the initial loan after ten years of paying the loan payments at a 5% interest rate. This indicates that his/her equity in the property would rise to 83.35 lakhs BDT or 83.35% of the property’s initial worth. Moreover, if the property’s value has organically climbed by 20% over the past decade to reach 1.2 crores BDT, the investor’s equity will be worth not just 83.35% but a whopping 100.02% (1.2 crores BDT X 83.35%). In other words, the investor will own the property outright in just 10 years.

Ability to Improve the Value

In terms of financial advantages, real estate investing has a distinct edge since you may raise the value of your property by upgrading the property’s quality or appearance. Investing a little amount of money in a property’s renovation may boost its value by several times. You may easily sell that home for a much greater price by repairing any existing defects and also upgrading the exterior or interior. By making enhancements to your property in this manner, you may raise its value and increase your profits.

Secured Retirement

The ability to pass on an asset that is durable, reliable, and secure to subsequent generations is one of the many benefits that come with owning real estate. After retirement, you might want a place to call your own where you can unwind in safety and comfort, or you might want to give your children their own address so they can feel at home. Putting money away in other places won’t guarantee you a safe place to live once you’ve reached retirement age.

Prestige

The act of investing one’s money in real estate carries with it a certain form of status. Moreover, today’s developers and real estate companies are developing contemporary complexes complete with all the most recent amenities. For those who can afford it, the status of owning such lavish property can surely enhance their social status.

Current Government Policies

The government recently reduced the tax amount on property purchases in order to reduce the impact of the pandemic, a move that will benefit investors. In 2020, the government cut the registration charge from 2% of the total land or flat price to 1%, bringing down the effective registration cost to 10% from the previous 14%. With this change in policy, now is a great moment to make a real estate investment. Moreover, govt. has also implemented a policy to give housing loans to govt. employees up to 70-75 lakhs BDT at a cheaper interest rate, which is a great opportunity to grab if you are a govt. service holder.

Growing Market Size

The real estate sector in Bangladesh has a market value of 6000 crores BDT. Medium-sized flats between 1200 and 1400 square feet have seen a 39% increase in the previous five years. Dhaka and Chittagong are the two largest cities in Bangladesh, where the real estate business is booming. Dhaka and Chittagong’s ever-busy urban society has a significant demand for smaller apartments. First, the real estate market in Bangladesh spiked in 2006 and lasted until 2009, and then again in 2015 and lasted till 2018. In the years 2022-2025, we may expect a further increase. Bangladesh has seen a dramatic increase in the number of Development Projects in the last decade all around the country; roads, highways, expressways, MRTs, and more are being built. While enormous regions like Bashundhara, Rupayan City, Purbachal, and others are being developed into self-sufficient gated communities, there is no better moment than now to start investing in real estate since it will boost the economy. The value of the real estate will go up even more. Making a large investment now will pay off handsomely in the future.

Summary

When you consider everything, any questions you may have had about purchasing property as an investment should already be settled. Getting a decent return on the money that we have been storing up throughout our lives is one of our ambitions. Consequently, when the term investment is brought up, there are no other ventures that can provide the same outstanding return on investments with such low starting capital, which is why most people invest in real estate properties. With a growing population and a booming economy, this sector appears to have more promise than ever in Bangladesh.

F.A.Q.

How can you get started in the real estate industry if you are a complete beginner?

Ans: To secure some good investments in the real estate sector, consult with a real estate agent who can help you find the best deals in the ever-growing market.

Is there any glossary available to get yourself introduced to common real estate terms?

Ans: Find out the most common real estate terms.

How much equity can I expect in ten years if I take loans for buying my first property?

Ans: A number of variables influence how much equity you have at a given point in time. This blog will help you figure it out for yourself.

How much does it cost to register a property that costs 50 lakhs BDT?

Ans: To register a property, the current fee is 10% of the purchase price. As a result, a property worth 50 lakh BDT will cost you 5 lakh BDT for registration purposes.

What is the best type of investment during inflation?

Ans: Inflation affects almost all forms of investments. Real estate investments, on the other hand, are a solid bet since property values and rental income rise in lockstep with inflation.

How to Decide to Sell Your House in Dhaka

It is a dream for any home seller to have a stress-free sale in which they simply advertise their home, find a suitable buyer immediately, receive the cash, and give over the keys. If only it were that easy! In truth, selling a property involves numerous moving pieces, some of which you can influence and others beyond your control.

For example, geography may determine how long your home is on the market or how much you may charge. There is high competition and low inventory, and you will probably sell quickly and for a higher price. In areas where house sales have slowed, homeowners will likely have to work harder to find the perfect buyer.

As a seller, you will want to be prepared and manage every aspect of the selling procedure that might significantly influence your bottom line. Hiring an expert real estate agent and optimizing your home’s web appeal might result in a smoother closing – and more money in your wallet.

Hire an expert agent

Before hiring a real estate agent, make sure you can recognize the expert qualities that make a good real agent. The world of the internet makes it much easier to research real estate agents’ sales history and professional credentials, allowing us to choose the best agent for the job. Investigate agents’ internet profiles to see how long they’ve been in the industry, how many sales they’ve made, and what designations they may have received. Examine how and where they advertise their listings and whether or not they utilize professional images.

An experienced agent, on the other hand, works hard to earn their commission. For example, they may market your home to the widest potential audience and negotiate on your behalf to obtain the best available bids. If you go it alone, you will be responsible for preparing your house for sale, promoting it, analyzing buyer offers, and handling all negotiations and closing formalities.

Selling a home is a significant operation that can take two to four months from start to completion — or much longer, depending on local market circumstances and available inventory.

As soon as you decide to sell your home, start looking for real estate agents with the appropriate experience for your scenario. Follow the guide to hiring a real estate agent to make your quest for a good real estate agent easier. Consider obtaining a pre-sale house inspection at least two or three months before you want to sell to detect any problem areas, particularly structural or mechanical concerns that may need to be addressed to assist a sale. Allow ample time to schedule any required repairs.

It is wise to start working on staging and deep cleaning about a month before advertising your home in preparation for shooting pictures that will appeal to the customers the most.

Complete A Pre-sale House Inspection

A home inspection before selling the house is an optional task. However, it can prove to be a wise investment in the long run. A thorough inspection report on the home can help you to identify any mechanical or structural issues before enlisting your home for sale. While the home inspection may cost you some money, it will alert you about any potential issue that the customers are likely to identify as a red flag during your home inspection.

A wise seller always thinks a few steps ahead of the buyers. As a seller, you can accelerate the selling process by fixing the issues that were found during the home inspection. This prep work will save you a lot of future headaches, and your home will be ready to sell without any issues.

No Unnecessary Costly Upgrades

If you decide to upgrade your home before selling, you need to be sure that your upgrades will bring at least two folds to return on the selling price. Unless you are absolutely sure about the return, you should not bother about upgrading your house. For example, installing new granite countertops will get, at best, break even on such upgrades. It will not significantly affect the overall price of your home.

If you want to gain some extra bucks by adding a few extra features to your home, you can consult a real estate agent. An expert agent will know what the local customers are expecting in houses. You can later take that advice into consideration and upgrade your house accordingly. For example, if the local buyers are not expecting steam showers in their houses, installing them in your house will not make any monetary sense. Rather, a fresh coat of paint, a new carpet, or better cabinets can raise the value of your house. Hence, you can upgrade these typical sectors of your house rather than installing European features.

Usually, upgrades in kitchens and bathrooms in the real estate business provide the highest monetary gain. If you have an old cabinetry system in your house, you can simply replace them or color them to look like new. You can also upgrade the kitchen cabinet of your home by replacing them with modern shaker-style doors without spending big money.

Professional Photoshoot

Schedule a photographer to take marketing shots of your house with your real estate agent. High-quality images are essential because improving your home’s internet appeal might be the difference between a rapid sale and a stalled listing.

Professional photography of the property is offered by most real agents. Some real estate agents include virtual web tours in their services. If they don’t, you might want to look for a photographer on your own. The cost of professional photography will vary depending on the size of your property, its location, and the duration of time it takes to photograph the entire property.

A professional photographer with a large portfolio understands how to make spaces look larger, brighter, and more appealing. The same is true for your lawn and outside spaces. Dimly lit web photographs might turn off homebuyers before they even read about the beautiful bike path nearby or the new roof you recently built, so well-taken photos can really pay off.

Enlist Your Home on The Market

Real estate companies often advise sellers to stage their properties. Staging a property is simply removing unnecessary furniture, personal possessions, and ugly objects from the home while it is on the market and arranging rooms for best flow and function. If you are listing a luxury home in a slow market, hiring a professional stager might help you stand out.

Make yourself unavailable when prospective buyers arrive to see your house. Allow them to envision themselves in the location without the distraction of meeting and speaking with you. Buyers are usually accompanied by their own real estate agent when they tour your house. You can also request that your own agent attend showings.

Set A Reasonable Price

Even in competitive markets, buyers do not want to spend more than what the comparables reveal. Thus the price is critical. Going too high might backfire while underestimating a home’s worth can lose money. It is better to learn about the property valuation process in Bangladesh before setting a price for your home.

Consult your neighborhood’s comps to price your house correctly from the outset. These are information sheets on recently sold houses in a certain area. You can see what properties in your area are selling for at a glance.

Furthermore, properties with numerous price reductions may give buyers the idea that there is something wrong with the quality of your property or that it is unwanted. As a result, it’s preferable to avoid the need for numerous price reductions by pricing your home to attract the broadest range of customers from the market.

Review and Negotiate Each Offer

After your property is officially listed on the market and buyers have viewed it, the offers should start coming in. A real estate agent is your finest advocate and go-to source for help in this situation. Buyers will most likely offer at or over the asking price if your local market is competitive and favors sellers. You may even receive numerous bids. However, if sales are slow in your region and you don’t receive many offers, you may need to be willing to negotiate.

When you get an offer, you have three options: accept it as is, make a counteroffer, or reject it. A counteroffer is a comeback to the initial offer in which conditions and price are negotiated. Counteroffers should always be conveyed in the form of writing and with a rapid response time for the buyer. You can, for example, provide a credit for paint and carpet but insist on maintaining your original asking price. To sweeten the bargain, you may offer to leave some appliances behind.

Consider Seller Closing Costs

Closing expenses apply to both the buyer and the seller. The house seller normally pays the real estate agent’s commission and ranges between 5% and 6% of the transaction price. Other usual expenditures borne by the seller include government transfer tax, recording fees, outstanding liens, and attorney fees.

Furthermore, if the buyer has negotiated any credits for repairs or closing fees to be paid at closing, the seller will pay them as well. Your real estate agent or closing agent should present you with a detailed list of all charges that you will be accountable for at the closing table. While the buyer normally pays the majority of closing charges, which range from 2% to 4% of the sales price, be aware that you may be required to pay some fees as well.

Incorporate The Tax Implications

The good news is that many house sellers will not have to pay taxes on earnings from the sale of their primary residence. You will require to pay taxes on any profit from selling your home if you have owned and stayed in your home for at least two of the preceding five years before selling it.

Prepare Necessary Paperwork For Deal Closing

A lot of documentation is required to properly document a house transaction. Organize everything in one spot to make things go more swiftly. Make sure you follow the property disclosure guidelines. Some of the main paperwork you will need to gather is your home’s original purchase contract, a document of a property survey, a certificate of occupancy and a certificate of compliance with local codes, mortgage documents, tax records, an appraisal from your home purchase, homeowners insurance, and a home inspection report, if you had one.

Hire An Experienced Real Estate Attorney

Not all states require sellers to attend the closing with a real estate attorney. Hiring one may cost a few thousand dollars, but it may be worth it to safeguard such a major financial transaction, especially if you’re selling your house independently.

An attorney may assist with paperwork, contract, and document analysis, identifying potential concerns, and ensuring the transaction proceeds as smoothly as feasible. An attorney would also be able to identify title concerns that might stall your sale for weeks or months — or possibly derail it entirely — such as outstanding liens or judgments, trust issues, mortgage amounts, tax issues, and encroachments.

Summary

It is critical to understand how to sell a property. Even if you don’t commit any of these blunders, make sure you emotionally and financially prepare for less-than-ideal conditions. The property may be on the market for far longer than you think in a sinking market. If you cannot find a buyer in time, you may have to pay two mortgages, rent out your property until you can find a buyer, or, in the worst-case scenario, go into foreclosure. However, suppose you avoid the expensive blunders outlined below. In that case, you will be well on your way to putting your best foot ahead and accomplishing the smooth, profitable transaction that every home seller desires.

F.A.Q.

Can I sell my house with a mortgage?

Ans: Yes, you can sell a property while still paying off your mortgage. You will get a mortgage payback statement from the lender holding your mortgage during the escrow procedure, which will show the precise remaining balance. When your loan is closed, the escrow agent will transmit the remaining balance of your mortgage to your lender, thereby paying off your loan.

Is it necessary to stage my house before selling?

Ans: Property staging may result in faster sales and better home values. Simply cleaning and decluttering a property can greatly influence its selling and will need to be done before leaving, regardless of the sale.

How much monetary gain can I expect by selling my home?

Ans: The amount you will earn is determined by the sale price, agent commissions, closing expenses, and the outstanding mortgage balance. If you are working with a real estate agent, you should get a seller’s net sheet before listing your property, which specifies how much you may expect to make.

Should I sell my home for cash only?

Ans: Selling a property for cash is a simple method to bypass the effort and worry of house staging. However, most cash purchasers will not pay more than 75 percent of the home’s worth, minus any estimated repair costs.

When should I list my home for sale?

Ans: It is better to list your home during the warm weather. Statistically, the house sale rate drops during the winter season.

Expert Qualities That Make a Good Real Estate Agent

As the real estate industry is booming, the market is also expanding. As the real estate market is getting more and more vibrant, more frequent real estate transactions are taking place. This increased number of real estate transactions has pushed the demand for real estate agents. Nowadays, you cannot think of buying a house in Dhaka without a real estate agent. Currently, the local real estate market has numerous real estate agents available. However, most of them cannot be considered experts. There are many crooks wearing the mask of real estate agents as well. Hence, if you are willing to build a career in the real estate industry, you have to acquire the following qualities.

Communication Skills

The job of a real estate agent revolves around people. Unsurprisingly, communication skill is a key quality for a real estate agent. However, communicating in the real estate industry is not an easy task. A real estate agent needs proper training and studying before going out in the field to handle clients. A real estate agent always needs to handle people with various mentalities. This is why communicating in the real estate business is different than other industries. Because each client has their own mindset and preferences, meeting each client’s expectations is a daunting task.

For example, some clients may not want to meet in person but talk over the phone only. Even when it is necessary to have a face-to-face conversation, they may want to communicate via text messages. Some clients may not be available at crucial times. In addition, some clients will want you to always be in touch with them and keep them up to date. Most commonly, the demands of most clients will always be farther from reality. If you are handling buyers, they will want the biggest and most luxurious properties at the lowest possible price. On the contrary, if the sellers of the property hired you as a real estate agent, they will want you to bring you buyers who will pay twice the actual value of the property.

No matter the preferences, as a real estate agent, you will always need to be understanding and considerate of your clients’ needs. You have to ensure that they feel at ease while communicating with you. The relationship between a real estate agent and a client is based on trust, and trust is built upon good communication. You need to make sure that your clients feel confident about you. You should communicate with them properly and advise them based on the reality of the industry. Some real estate agents oversell them and provide false information to keep their clients happy. However, such real estate agents can prosper in their careers. Eventually, the clients catch their malpractices, and the clients lose their faith in such real estate agents.

Furthermore, the necessity of great communication skills for a real estate agent is not confined to the clients only. Real estate agents need to maintain continuous communication with the industry people. Real estate agents to keep themselves up to date about the industry. Information is a major wealth in the real estate industry. It is information and connections that make a real estate agent stand out from the rest. Hence, it is very crucial that real estate agents have great social skills. It is by communicating with the people of the industry a real estate agent can gain valuable information about the market and make connections that will make the job much easier.

Understanding Social Cues

The ability to understand the subtle social norms of society is an extension of greater social communication skills. Communication is not just about talking, listening, and replying. It is also about reading the body language of the person you are communicating with. Hence, as a real estate agent, you must be very sharp to pick up the body language of the person you are communicating with. By properly reading their body language and facial expressions, you can figure out if your client is confident or nervous. This will allow you to direct the communication in a way where you can control and drive the conversation in a direction for both parties can be satisfied. The same goes when you are communicating with the industry people. By reading their body language, you can pick up valuable information that will help you to close the deals for your clients.

Furthermore, you need to be aware of your body language and facial expressions as well. You have to make sure that you always seem confident. A good way of gaining confidence is by maintaining proper eye contact. It is also a sign that you are listening to them very attentively. Always ensure that you come off very eager and polite with your clients. Make sure you understand the culture of your clients. Different societies have their own customized cultures and norms. Try to understand the culture of the people you are dealing with. Be respectful of their culture and abide by their norms. Especially if you are handling a foreign deal, extensively study your foreign client’s culture. Understand their etiquette beforehand and ensure you never come off as a rude person.

Integrity

As we discussed before, the base of a good agent and client relationship is trust. If both parties do not trust each other, then there will be no fruitful relationship. It is open communication that will keep you on track to earning the trust of your clients. However, open communication may establish the fact that you are honest with your clients. But it will not give you the badge of integrity. Integrity is built upon reputation. You need to ensure you are providing great service to each and every one of your clients. It is your clients’ testimonials that will give you the badge of integrity. Once you obtain that badge, you will stand out from the rest in the industry. Both your clients and people from the industry will entrust you with their property and information.

However, as earning integrity takes time, it can be difficult if you are a newbie. But you cannot be disheartened. Every real estate agent has to start from the very bottom and build themselves up. Things may be slow at first. You may find it hard to get clients by remaining honest. But keep in mind your honesty will not go unseen. If you maintain your client’s faith from the very beginning, you will climb up the career ladder in the shortest amount of time.

Ability to Negotiate

A large part of the job as a real estate agent is negotiating. You need to negotiate with your clients and with the people from the industry. The better you are at negotiating, the better the deal you will strike. However, negotiating while keeping your honesty and integrity intact can often prove to be a very difficult task. However, you must never compromise with your honesty. Top real estate agents have reached the top position by their ability to negotiate without bending their code of work ethics. As a real estate agent, while you will be negotiating on behalf of your clients, sometimes, you may need to teach the articulate skill of negotiation to your clients as well. You may have to walk your clients through the step-by-step guide to buying a new house. You may need to educate your clients about recognizing a good and when it is the right time to accept a deal. A final lesson of negotiation is knowing when it is the right time to give up on a deal. Often you may be stuck upon deals that are not going anywhere. During those times, you need to realize when the deal is no longer suitable for your clients and move on to the next deal.

As a real estate agent, you need to always keep in mind that it is your negotiation skills and decisions that will ensure whether you can maximize the profit for your clients or minimize the losses. Hence, it is a very crucial aspect of the job, and a real estate agent cannot help but become a master of the art of negotiation.

Listening Skill

Despite being a part of communication skill, listening skill rightfully deserves to be explored further as it is an integral part of communicating and building trust among each other. It may sound simple, but there are important techniques to learn to obtain better listening skills.

When you are at a meeting with your clients, provide them the opportunity freely speak their minds. When your clients are speaking, you have to give them your undivided attention. Even if you start to feel impatient or get tempted to reply back, you need to hold yourself down and keep on listening attentively. Give your clients the space to express all their concerns, doubts, expectations, and demands. Make sure you repeat their asks to confirm. Do not forget to ask follow-up questions and elaborately understand where your clients are coming from. These techniques are amazing methods to build trust with clients.

Further, these listening skills will prevent you from going into the deal with false assumptions. You will not have any confusion. You will go ahead in the deal with clear and precise information. In addition, the more you talk to your clients and listen to their tactic feedback, it will greatly help you to come up with better plans to approach the deal.

Problem-Solving Skills

The job of a real estate agent revolves around solving numerous problems each day. You have to master the skill of problem-solving skill to climb up the career ladder. The top real agents of the industry dedicate a great amount of time to tackling various difficulties. Each client brings their own set of challenges, and a real estate agent has to find the optimum solution to ensure maximum client satisfaction. For example, a client may come up with a property that has various legal issues. As a real estate agent, you have to solve each legal issue one by one. Legal issues are often very complex and take a long to resolve. You need to figure out the optimum approach to solve such issues.

Teaching Skills

As mentioned before, teaching is also a part of the job for real estate agents. When clients hire a real estate agent, they not only expect them to buy or sell their property but also expect your full assistance with the process. When it comes to assistance, you have to educate your clients about various aspects of the process of buying or selling a property.

Before teaching your clients, consider your client’s experience in the real estate industry. If your client has made a past transaction of properties, you may not go into detail about most aspects of the process. However, first-time buyers or sellers will expect to learn a lot from you. You may need to explain the basics to them. No matter the experience of the clients in the business, you must always be patient with your client. Assist the new clients in understanding the rules and regulations. Explain the laws and procedures to them. Anticipate a lot of questions from them and prepare yourself accordingly.

Patience

Patience is another key skill for a real estate agent. Hotheads cannot survive in the real estate business. The most successful real estate agents have the ability to keep themselves calm and composed in the most difficult of situations. Not all deals will be according to your expectations. You will often find yourself waiting forever for the right deal to come by. Sometimes, you will have to deal with parties who are not easy to deal with. No matter what the situation, as a real estate agent, you must always keep your composure. You need to exhibit patience in each step of the process.

Patience is an acquired virtue. You will acquire it as long as you keep practicing it in the field. You will need to nurture your mind into that state where no matter the situation, you can keep yourself calm and composed. You have to make them aware of the frequent mistakes that new homeowners make. You must be ready to explain the same thing repeatedly to each new client.

Tech Savviness

In the past, real estate agents used to keep their records in their notebooks and store information in their heads. But those days are long gone. Modern technology has improved the real estate industry as well. With the help of technology, real estate agents nowadays can streamline most of their processes and help themselves convert any leads much faster. There is technology to keep a record of every data of the industry. Real estate agents can analyze the data further to find leads by using the technology. In addition, real estate agents can confer with the clients virtually and can even provide a virtual tour of the property. The property valuation process can be done more efficiently and accurately with the help of technology. Lastly, sharing and preparing documents has become easier than ever with the blessing of technology.

Considering the long list of implications of technology in the real estate business, you cannot help but train yourself to adopt those technologies. The times are changing, and real estate agents need to keep up. If you want to handle modern clients, you will have to master using modern technology as well.

Knowledge of the Industry

Knowledge and information are very valuable in the real estate industry. The greater your knowledge is about the local real estate industry, the better equipped you are to support your clients. Your knowledge about the industry will always come in handy. It will not only help you to find and close the best deals but will also help you to market yourself to prospective clients.

You need to always keep in touch with the people of your industry. You should stay connected with agents who are in cities and in rural areas. You need to keep a close eye on the country’s overall economy as well. A country’s economy has a direct impact on the real estate industry. You need to study consumer behavior as well. Always stay up to date about the current market demand. You also need to be aware of the world economy as well. Global financial health will have an indirect impact on the local industry. As a real estate agent, you cannot only rely on people to obtain information and knowledge, and you have read newspapers and related books as well to keep yourself well-informed about the current industry trends.

Understanding of Architecture

As real estate agents mostly work with brick and mortar properties, a sound knowledge of architecture will surely provide an edge over the competitors. If you understand design and structures, you can not only find the best deals for your clients but also can find the best property of their preference. Further, you suggest and assist your clients in such regards. You can help your clients in checking the important things before buying a property. This will greatly help you to gain the trust of the clients and build integrity. Most importantly, it will help you to most efficiently complete your job.

Time Management Skills

All other qualities will be useless if a real estate agent cannot manage time efficiently. As a real estate agent, if you fail to meet the deadlines, cannot provide valuable information in time, unable to prepare the right paperwork, you will lose clients rapidly. You will lose the trust of your clients, and your reputation will be severely dented. Hence, as a real estate agent, you must use your time efficiently. You always have to maintain a routine life and perform your tasks in a systematic manner.

Summary

Expert real estate agents come from different backgrounds and may have varying personalities and methods of handling clients. But all of them possess the mentioned qualities. There are other qualities that will provide more extra edges over the competitors. But the mentioned qualities are the absolute must-have if a real estate agent wants to stay in business for long and climb the very top of the ladder.

F.A.Q

What Degree Do I Need to Become a Real Estate Agent?

Ans: Normally, you do not need a specific university degree to become a real estate agent. Rather you need specific education and training in the industry.

How Much Do Real Estate Agents Make?

Ans: It varies. Some real estate agents get employed and earn from salaries. But most earn their livelihood via commissions.

What Percentage Do Most Real Estate Agents Charge?

Ans: The percentage varies depending on the property. But the industry standard commission typically ranges between 4 percent to 6 percent of a property’s sale price.

Can I Use a Real Estate Broker to Rent a Property?

Ans: Yes. In addition to helping clients to buy or sell their properties, a real estate agent can also assist you in finding the best place for you to rent.

From Where I can Appoint an Expert Real Estate Agent?

Ans: Mir Real Estate is a hub for the industry’s most expert real estate agents. You can easily contact them and convey your needs.

A Seller’s Guide to Property Disclosure in Dhaka

Selling a house is just as complex as buying a house. If you want to sell your apartment in Dhaka, you must follow a legal procedure. The buyers will always sharply check everything before buying a house. If the seller fails to disclose any important information to the buyer, the transaction is likely to fail. In real estate terms, disclosure refers to the document that reveals all defects of the property. These said defects impact the value of the property, and the seller is obligated to disclose each known defect. The disclosure will outline each past problem that occurred to the property. The seller is legally obligated to disclose the information. If the seller fails to disclose any critical information about the property that negatively impacts the value of the property, the buyer can legally file a complaint against the seller. As there are legal consequences, the seller must be very careful about the disclosure. Here’s a brief guide of things that a seller needs to disclose before selling a house in Dhaka-

The Basics

The disclosure statement has a few basic features. First of all, the disclosure statement should be prepared following the terms and regulations of The Property Act, 1882. Secondly, the disclosure document must be in written form. The seller must submit the disclosure as a written document to the buyer. Lastly, the disclosure statement is not an inspection report. The seller does not need to complete a house inspection in order to prepare a disclosure report. Rather, the seller will list down all the knows problems during the tenure of his or her ownership of the property. As a seller, if you are not aware of a problem with the property, you are legally not obligated to list it in the disclosure statement. Hence, a buyer shall not think of a disclosure report as a house inspection report.

Health & Safety Hazards

If you are selling an old house, there can be numerous health and safety issues with the property. As a seller, you must disclose any issue with the property that may potentially harm the physical health of the new buyer. Over the years, the walls and floors of the property may dampen up. It can create mold, radon, or asbestos. The mold that grows within the walls or the floors is directly related to humidity within the property. Mold can cause allergies, itchy eyes, and headaches. Certain home appliances that use fossil fuel to function may generate carbon monoxide. Carbon monoxide is a very dangerous gas and seriously damages internal organs.

Further, the seller must disclose if there are any faulty electric lines within the apartment. Fire hazard has become frequent in the recent past. Anything that can cause a potential fire hazard should be mentioned in the disclosure report. If the house features access to a pool, the seller must disclose water-related issues such as the depth of the pool or the quality of pool water.

Mechanical Issues

Most modern houses are now well-equipped with modern features. Any issues with the electricity line, water line, sewer system, gas line, and HVAC (Heating, Ventilation, and Air Conditioning) fall under the umbrella of mechanical issues. The seller must inform the buyer if there are any existing mechanical issues with the house. For example, if there are any electric power board that does not function properly, the seller has to mention it in the disclosure statement. In addition, the seller must inform whether or not gas and water are available in the line all the time. Many houses in certain areas in Dhaka suffer from a shortage of gas and water. If gas and water are available for a specific period of time, the seller must mention that. Otherwise, the seller may deceive the buyer, which is illegal. Lastly, the house should have a proper ventilation system to ensure airflow. If the house has a faulty ventilation system, it will fall under the health hazard category.

Structural Defects

In the disclosure report, the seller must enlist any existing structural defects with the house. If the house has any issues with the foundation, roof, or structure of the house, the seller must clearly mention it in the disclosure report. For example, if the foundation of the building is not earthquake-proof, the seller has to disclose this information. If the roof of the building does not have a high railing, the seller has to mention it. Lastly, if the structure of the apartment has any architectural faults, the seller has to list it in the disclosure report. Further, if the apartment structure has any sharp edges or damaged walls, the seller has to disclose that too.

Flooding

Due to overflow of the water or plumbing issuers, the floors or the walls of the house may face water damage. Plumbing is a common issue. Due to faulty sewerage or plumbing, waterlog and flooding occurs. The seller has to mention all previous history of water damage to the house.

Renovations

After a few years, most houses need renovation works. Over time, the paint on the wall may discolor, the edges of the wall may get damaged. Sometimes, if the house was sold multiple times, each new buyer might remodel the structure of the house. Whatever the changes, if any sort of renovation work has been done in the past, the seller has to disclose it in the disclosure report.

Pests

Most houses in Dhaka face the mosquito problem. Though it is not common practice, however, legally a seller is bound to disclose any known issue with pests. Apart from mosquitos, the house may be infested by termites, rodents, or rats. If the seller is aware of any pest issue, he or she has to disclose it to the buyer.

Legal Issues

If the seller has put the house on the mortgage for loans, the buyer has a right to know about it. Often, homeowners use their house as leverage to obtain loans from financial institutions. Before selling the property, the seller must clearly mention that the house is clear from any leverages. The seller must also report any liens against the house or bankruptcy proceedings that may impact the value of the house.

Property Line or Zoning Issue

Property line or zoning issue is a very common problem in Bangladesh. Adjacent landowners often create a dispute over the property line. These disputes are required to resolve legally. However, that usually takes time. Hence, the seller cannot sell the house during an ongoing dispute over the property line. Moreover, when the dispute resolves, the seller has to disclose the entire dispute and its result in the disclosure report.

Crime Scene

If any crime occurred within the property, the seller must disclose it in the report. Past history of robbery, theft, or physical harm, whatever the crime, the seller has to clearly mention the crime and its current situation of legal proceedings. Especially if anyone was murdered in the house, the seller must disclose it. Many buyers are reluctant to buy houses that have a past history of death. Buyers often demand to know about natural death as well.

Neighborhood

The environment of the neighborhood, if negative, requires disclosure. If the neighborhood has a high crime rate, noise pollution, air pollution, or other negative features, it will adversely affect the value of the house. In addition, if there are any factories in the neighborhood that emit toxic gases or dump toxic materials in the open area, the seller has to disclose such information too.

When to Provide Disclosure Report

There are usually two occasions during the listing and selling of a house when the seller may need to hand over the disclosure report.

If the seller submits the disclosure report along with the listing of the property, potential buyers will have full knowledge about the property. Only serious buyers will approach the seller. There will be no disputes right before the deal. Hence, it will save time for both parties, and the transaction will be much smoother.

On the other hand, a seller may decide to provide the disclosure report right before the final deal. Oftentimes, it creates disputes among buyers and sellers. As buyers find out issues from the disclosure report, they may decide not to buy the property or negotiate to drop the price. In most cases, last-minute disclosure report handover results in a failed deal.

When Can Disclosure Report be Omitted

The disclosure report is not mandatory in all cases. There are a few instances where the seller does not need to provide a disclosure report.

Bankruptcy: If the seller declares bankruptcy and the bank decides to take over the house, the seller will not need to provide a disclosure report.
Bank-owned Houses: If a buyer buys a house from a bank, the bank is not obligated to provide a disclosure report. Rather, the buyer needs to conduct his or her own home inspection.
Gift: If someone decides to transfer the ownership of a house to another person as a gift, a disclosure report will not be necessary.
Divorce: If the ownership of a house gets transferred as a result of divorce between spouses, a disclosure report will not be necessary.
Business Transfer: If a company owns the house, the company does not need to show a disclosure report while transferring the ownership.

Consequences

The law of property disclosure protects the buyers from buying a property with serious flaws and protects the sellers from future legal obligations. Hence, the sellers need to take disclosure reports very seriously. If the seller fails to disclose any serious flaws with the property, the buyer can take legal action against the seller. In such cases, the seller will need to pay for any buyer’s damage. For example, if the buyer discovers undisclosed health hazards and suffers from health issues, the seller will have to pay for all the medical expenses upon lodging a legal complaint. On the other hand, if the buyer finds any structural or mechanical issues with the house, the seller is legally obligated to pay for all the repair expenses.

Tips to Avoid Disclosure Dispute

Unless the seller is very careful and precise in their disclosure report, future disclosure disputes from buyers may arise. To avoid such disclosure disputes, here are a few tips:

Disclose every little-known issue about the property. No matter how small the issue is, to stay on the safe side, disclose every detailed issue that may negatively affect the house’s value, usefulness, or enjoyment.
After closing the sale, keep the signed disclosure for at least three years.
Keep documents of all repair works and provide them to the buyer before closing the deal.
Conduct a pre-inspection. It will help you find all the house issues to list them precisely on the disclosure report.

Minimize the Impact of a Disclosure Dispute

If you try to go through The Property Act, 1882, you will find numerous sections, sub-sections, and explanatory footnotes. Unless you are well equipped with the terms of law, your head may explode while reading all these complex laws and real estate terms. Even if you manage to read through the sentences, the legal jargon will leave you with headaches and confusion. Hence, if any disclosure dispute arises, it is wise to hire an experienced real estate agent. A real estate agent will help you to resolve the dispute amicably. Moreover, if you hire real estate prior to your listing of the house, the agent will help to prepare the disclosure report in the right way.

Summary

Disclosure is a crucial document for the sellers and the buyers of a house. While the law is there to primary there to protect the buyers from getting deceived, the sellers are also protected from any false legal disputes through the disclosure report. Concerned sellers should appoint a real estate before listing the property and disclose the condition of the house precisely to avoid future legal hassles.

F.A.Q

Do I need to disclose any repair of the rooftop of the building?

Ans: Yes. If the buyer is a partial owner of the rooftop, you have to disclose this information.

Where Can I get a disclosure form?

Ans: You can find disclosure forms online. Or, you can contact a real estate agent.

How long before selling the house should I prepare my property disclosure report?

Ans: You should prepare your property disclosure report right before listing the property for sale.

Do I need to disclose any repair of the garage?

Ans: Yes. You have to disclose any repair of the garage as it is a part of the property too.

Where Can I find experienced real estate agents to hire to prepare my property’s disclosure?

Ans: Mir Real Estate employs the most skilled and experienced real estate agents to hire.

The Property Valuation Process of Real Estate Agents in Bangladesh

Whether we want to buy or sell a real estate property, we need to know the actual value of the property. In the current world, the real estate industry is rapidly growing. The number of real estate properties is multiplied each year. The increased supply is an answer to the increased demand for real estate properties in Bangladesh. However, as the real estate market gets bigger, the market also gets competitive. The price of real estate properties is constantly fluctuating in the current market. Hence, the need for real estate agents is always in demand as the process of property valuation has become of critical importance for both buyers and sellers. For sellers, the proper valuation of the property will ensure a successful sale. If the property is undervalued, the seller will incur a loss, and if overvalued, the seller will have a tough time finding a buyer. The seller will eventually lose money for each day the property remains unsold. For buyers, knowing the proper value of a property will ensure a fair price purchase. As the market is competitive with many players, false advertisements and properties with overvalued quotations are increasing. Buyers can save themselves from paying more than the actual worth of the property by getting their property valued before purchasing.

Usually, real estate agents conduct the valuations of real estate properties. Clients come to the real estate agent to value their property for reasons such as sales listing, financing, property insurance, investment analysis, and taxation. But in most cases, real estate agents value property to determine the asking or purchase price of a property. However, valuing a real estate property is a difficult task since each property comes with unique features such as location, floor size, lot size, design, and additional amenities. The following article will explore the methods that the real estate developers in Bangladesh use to determine the value of a property.

Basic Valuation Concepts

In technical terms, the value of a property is the present worth of all future benefits arising from that property. Unlike most consumer goods, the real value of a property is realized in the long term. As the valuation is conducted considering the impact of a long period, macroeconomic factors such as economic trends, social trends, environmental impact, and government regulations are taken into consideration. However, the value is calculated keeping four elements in mind.

Demand: The need or necessity of consumers for a property that is backed by financial strength.
Utility: The Property’s ability to satisfy the need of its owners.
Scarcity: The limited supply of similar properties in the area.
Transferability: The ease with which current owners can transfer ownership to new owners.

Value Versus Cost and Price

The value of the property is not necessarily the cost of the property. The cost of a property is the actual expenditures on building the property. The cost is the sum of the labor expense, material expense, and other additional expenses. The cost of a property certainly affects the value of the property, but it does not determine the value of the property. For example, building a ready flat in Dhaka may cost 40 lakh BDT. But if the regulatory body finds any critical fault in the foundation, the value of the apartment will drop significantly. Similarly, if the same apartment is built with a perfect foundation and is situated in Gulshan, the value of the apartment will be many times more than its actual cost.

Market Value

The market value of a property, the price at which the property will be competitive in the open market, is determined by an appraisal. Before making any decision about the transaction of any real estate property, concerned parties such as individuals, businesses, government agencies, investors, banks, or mortgage companies evaluate the appraisal reports for a period of time to determine the property’s future value. The market price is the property’s actual value. However, the market does not always represent the true value of a property. For example, the seller may decide to sell a property at a lower price than its actual worth due to the pressure of foreclosure, or if the property is private, it can be sold at a lower price than its market value.

Appraisal Methods

An appraisal is an estimate or opinion about the value of a property on a specific date. The goal of preparing an appraisal report is to determine the property’s competitive market value. An accurate appraisal report depends on the precise and methodical collection of a critical data set. Such as data related to the property’s cost, material cost, market price, location demand, amenities, and other general and other related data. The appraisal method of property valuation can be approached in three methods.

Method 1: Sales Comparison Approach

The sales comparison approach, also known as the market data approach, is mostly used to determine the value of single-family apartments, houses, or lands. In technical terms, the sales comparison approach is an estimate of a property’s value that is derived from comparing the sales prices of a similar type of property or comparable properties in the area in the recent past. To be recognized as comparable properties, each must have the following attributes:

As similar as possible, especially the size and location, to the subject property
Have been traded within twelve months in a competitive and open market
Have been traded under a normal market situation

To prepare an appraisal report, the agent needs to use at least four comparable properties. It should be noted that the critical factors in choosing a comparable property are size and location. However, in most cases, the location of the property has a greater impact on the value of the property rather than the size. In addition to the size and location of the property, the age and condition of the infrastructure is also critical factor. Agents critically focus on the date of sale too. Economic changes impact the value of a property. Hence, the date of sale indicates at which economic cycle the property was last sold. Agents also evaluate the terms and conditions under which the property was last sold. Because the property was sold to relatives or close friends, the seller might give the buyer a discounted price. If an agent considers the discounted price for the sale comparison valuation method, he or she will undervalue the property.

Usually, to reach the final valuation number, agents use a weighted average value of all the comparable properties. Because many of the property’s physical features such as landscape, amenities, number, and design of rooms, quality of interior decoration, and other features are subjective to buyers. Hence, the agent adds weight to comparable properties to maintain a fair value.

Method 2: Cost Approach

The cost approach method of property valuation is solely used for valuing constructed properties on the land. Only lands cannot be valued using the cost approach method. This method consists of two separate evaluations for the building and the land. Another key aspect of this approach is that this method takes depreciation under consideration as well. So, the final estimated value is based upon the value of the building and the land while subtracting the depreciation. The cost approach method assumes that reasonable buyers will not pay a higher price than the overall cost of the property and the value of the land. Agents use the cost approach method to determine the value of properties that are not frequently traded and are not used to generate income. Such properties include personal houses, schools, hospitals, religious institutes, and government buildings.

While the cost approach method is a combination of both the value of the land and the building, the land is valued using the sale comparison method. Only the value of the building is calculated using the cost approach. The cost of the building is calculated in several ways. Agents in Bangladesh usually use the square foot method, where the cost per square foot of a recently built comparable property is multiplied by the square foot of the subject property building. Another method is called the unit-in-place method, where the cost of the building is calculated based on the cost of each unit of material that was used to build the building. Lastly, there is another method that is used when the property is very large in size. The method is called the quantity-survey method, where the price of each material that will require to build a similar in the current time is considered. The current market of raw materials is considered the base. Additional costs of installation are also considered in this method.

Depreciation is a key element in the cost approach valuation method. Depreciation regards the fact that the value of the building will deteriorate with time as the physical, functional, economic, or social condition of the property changes negatively. Physical conditions deteriorate when a certain part of the property gets old and requires replacement. Usually, the paint and the condition of the roof deteriorate. There are certain physical problems that cannot be fixed, such as the structural issue of the property. Functional damage occurs when a certain feature of the building seizes to function. For example, the waterline may not function properly anymore, or the internal electrical system may start to malfunction. The economic condition is a macro factor. However, it affects the value of the property. If the whole economy starts going through a bear phase, the value of the property will face its impact. Finally, the social factor includes the adjacent areas of the subject property. For example, if a polluting factory gets built just by the property, the value will decrease. On the other hand, if a good school or a beautiful park gets built nearby, the value of the property will rise.

Method 3: Income Capitalization Approach

The income capitalization approach, also known as the income approach, is a method that calculates the value of a property based on the connection between the rate of return for the owner and the net income that the property can generate. The income approach is most suitable for the properties that are built to be put out for rent. The valuation is very simple as the agent calculates the possible future income that the subject property can generate and estimates its current value. However, the income approach assumes that in the future, all the factors that may affect income will stay normal.

To perform the valuation, firstly, the agents will estimate the annual gross income for the property. Then the vacancy period and potential rent collection loss will be taken into consideration to calculate the effective gross income from the property. Then the annual operating expenses will be deducted to calculate the net operating income from the subject property. Once the net income is calculated, then the agents will estimate the price a rational investor will pay for a similar level of net income using the data of industry rate of return or capitalization rate. Finally, the agents will incorporate the capitalization rate into the subject property’s annual net income to calculate the final estimated value of the property.

Summary

The valuation of a property is not an easy task. The process is lengthy and time-consuming. However, the significance of property valuation is enormous. Skilled real estate agents to conduct real estate property valuation using either of the mentioned three methods. While each method is best suitable for a certain type of property, all methods should generate a relatively similar estimated valuation. The actual value of a property is a piece of very important information for not only buyers, but anyone can gain benefit from it.

F.A.Q

How can I be sure of the skill and credibility of a real estate agent?

Ans: You should read the former client reviews and then follow your instinct. To be on the safe side, you should employ your real estate agent from a reputed real estate company in Bangladesh such as Mir Real Estate.

How much does a real estate agent charge for a property valuation?

Ans: The fee of a real estate agent depends on the value of the property.

How long does a property valuation report remain valid?

Ans: There is no official expiry duration for a property valuation report. However, banks do not accept property valuation reports that are more than six months old.

Can I conduct the property valuation on my own?

Ans: Technically, you can. However, if you are not from the real estate industry and do not have much knowledge of the real estate market, you are likely to miscalculate.

How long does it take to complete a property valuation?

Ans: The duration to complete a property valuation depends on the size of the property. Usually, the valuation is completed within one week to three weeks of time.

Renting vs. Buying: What Is the Best Choice for People Living in Dhaka?

The expense of living in the capital city is always going to be very expensive. Whether one decides to rent or buy, a large portion of the income will go to bear the cost of accommodation. Both options have their own benefits and downsides. Hence, the conversation of renting vs. buying a home in Dhaka always becomes a heated debate. However, here’s a brief guide about the pros and cons of both renting and buying a home in Dhaka.

Affordability

When it comes to the mode of accommodation, the first concern is the availability of financial resources. Not everyone can afford to buy a home in the city. You must have a high annual income before thinking about buying a home in Dhaka. In addition to a high annual income, one must have enough savings to pay off the down payment as well. Moreover, if you take home loans to buy your home, you have to bear the burden of interest as well. Hence, buying a home in Dhaka is a very costly expense, and only if you have a high annual income and enough savings, you shall consider buying a home in Dhaka.

On the contrary, if you have a low annual income and little amount savings, renting is the right option for you. Often, people with low annual income purchase a house with loans. However, in the long run, in most cases, they fail to pay off the interest, and the bank takes over the house. While it is a dream of everyone to have a house in their name, without proper financial backup, it cannot come true.

Lifestyle

Our lifestyle is one of the key drivers in choosing whether you should buy a home or rent an apartment. Our lifestyle determines for how long we will stay in the same place. If you are not married and do not live with your family, renting is the obvious choice. Bachelors do not need a permanent home as they are likely to move from one place to another. Another key factor behind not opting for renting is whether or not you are planning to stay in the country. If you are planning to migrate to another country, a purchased home will become a burden. In addition, people who love to travel and stay lion-share of time of the year traveling should rather rent as that would be more cost-effective.

Usually, people with families opt for buying a home in Dhaka. Generally, married couples who have kids who are studying in Dhaka plan to purchase a home. They are likely to stay in the same place for a very long time. Bachelors who live with their parents can also buy a home. As they are at the early stage of their career and will eventually settle, a home will reduce the tension of paying rent each month.

Occupation

Occupation is another key force in the debate about renting vs. buying a home in Dhaka. If you plan to buy a home in Dhaka, you should have an occupation that is based in Dhaka. In addition, there is no chance of transfer. Another key aspect is whether one is fully satisfied with their current employment or not. If your job is based in Dhaka and pays a high salary, there is no chance of transferring you to another location, and you are satisfied with your current position at the company, you may consider buying a home in Dhaka. For business people, if your business is based in Dhaka, and you are likely to stay in Dhaka for the majority of the time, then it is the best time to buy a home in Dhaka for you.

On the other hand, renting is the right option for you if you are not settled with your current job. If you are planning to look for other opportunities in different locations, then renting would be a wise choice. Moreover, if your position at the job comes with the possibility of transferring to another location, you need to opt for renting. For business people, if your business requires you to travel to different places and you are not likely to spend the majority of time in one place, you should rent a place rather than buy an apartment.

Capital Appreciation

Buying a home is an obvious long-term investment. However, it is also a long-term financial investment as well. The value of a property will rise as time goes by. Once you buy an apartment, you are set for a capital appreciation in the coming days. Meaning if you decide to sell your apartment after five years, you will be able to sell it at a much higher price than the amount you initially paid. Another key advantage of buying a property is that your property is free from the effects of inflation. Meaning the value of the property will adjust with the rate of inflation. Hence, your property in Dhaka is highly unlikely to ever drop in value. Rather the value will only go up with time.

On the other hand, renting is not free from the effects of inflation. If the country’s inflation rate goes up, the price of the rent will go up in tandem as well. Moreover, most landlords in Dhaka increase their rent annually. In brief, renting is sunk cost that increases with time.

Rental Income

If you buy a home, you have the option to not live in the apartment and rent it out. It is a very common practice in Dhaka. Many homeowners rent their apartments. The demand for rental houses is very high in Dhaka. The price of rent is always on the rise as well. Hence, many homeowners see their apartments as a means of monthly income.

Tax Benefits

If you buy your home on a home loan, you will receive tax benefits. According to Tax Ordinance 1984, the interest of your home loan will be deducted from your taxable income. As a result, as long as you are paying off the home loan, you will keep on saving from tax benefits.

Financial Strength

If you buy a property, you add great value to your overall wealth. Once you have a home of your own, you can use it as leverage to obtain higher loans from banks. Moreover, banks or other lending institutions give homeowners extra advantage as apartments are fixed assets that appreciate in value over time.

Size & Design

If you are renting, you are likely to crumple up in a small space. You cannot decorate the home you want as the structure of the apartment are often mundane and basic. Moreover, if you try to make any changes, the landlord will be onto you. If you are renting, you cannot express your own choice. Rather you have to adjust to the existing size and design of the apartment.

On the contrary, if you buy a home, you can design it the way you want. You can decorate your home according to your taste and choice. Your home will be an expression of your own personality. You can customize the rooms according to your preferences.

Freedom of Choice

Most landlords in Dhaka close the door of their buildings by 11 PM at night. Both job holders and business people often need to work late. However, the landlords make a fuss about their tenants being late. It becomes a hassle to maintain a very strict timetable to get into the place you are paying to live. Tenants often feel like they are under a strict regime, and there are numerous rules and regulations to follow.

However, if you buy a home, you are the owner. You are no longer under the law of anyone. You can get into your home any time you want. You do not need to maintain any curfew-like ultimatum each day. Rather, you can live freely.

Hidden Costs

If you are renting a place, you know exactly how much you need to pay after each month. You have a clear and concise idea about the cost of your accommodation. However, if you are buying a home, the cost does not end in paying the price of the home. Not knowing about the hidden charges is one of the frequent mistakes that homeowners make. Rather, there are various hidden costs included. Homeowners need to pay the holding tax. In addition, you need to pay the monthly apartment maintenance and repair costs.

Additional Responsibility

If you are renting a place, you do not need to worry about anything else but the rent. However, if you buy a home, you include yourself in many other additional responsibilities. For example, you always need to ensure the proper maintenance of your home. If anything within your home does not function properly, you are responsible for fixing that. But if you rent, the landlord will fix it for you. Homeowners need to care for and maintain every little aspect of their property. They are also responsible for the security of the property as well. Another big responsibility is paying the utility bills. If you are renting, in most cases, you pay the landlord, and the landlord pays off the utility bills. However, once you become a homeowner, you have to pay your own bills. It is very crucial because if you fail to pay off the bills in time, your connection will be detached, and you will no longer receive utilities such as gas and electricity.

Non-Liquid Asset

The value of the apartment sure increases with time. However, assets such as properties are not very liquid. Meaning you cannot cash or sell the asset very easily. It takes time to sell a property, unlike stocks in the share market, which you can sell instantly. Apartments, non the contrary, take a long time to liquify as interested buyers are hard to come by. Even if you find interested buyers, the legal procedure to transfer the ownership of the property also takes time.

Pride of Ownership

Buying a home in Dhaka is a dream of most Bangladeshi people. It is a milestone to reach. However, as the dream is very expensive to fulfill, only a few people can afford to call themselves proud owners of a home in the capital city of Bangladesh. It is certainly an elite group, and people take pride once they secure a home in the capital. People feel very accomplished and have a sense of achievement after they buy a home.

Summary

Whether one will buy a home or rent mainly depends on their solvency and affordability. However, financial capability is not the only factor before the conclusion. There are various other factors that are very influential in determining which choice is right for you. You must keep in mind that buying a home comes with a sense of lifelong security of accommodation, but it is a highly expensive decision. One must make a long-term commitment to purchase a home. In addition, one must be ready to bear the responsibilities that come with buying a home. On the other hand, if you are renting a place, your expense of accommodation becomes a sunk cost, unlike buying a home which is an asset. But if you are financially robust and you need mobility in your life, renting is the right choice for you. Finally, your decision of renting vs. buying a home in Dhaka should depend on financial capability, lifestyle, and future goals.

F.A.Q

Is renting the cheaper option of accommodation in Dhaka?

Ans: Yes. If you are financially not capable of buying a home, then renting is your best option.

How can I buy a home in Dhaka at a reasonable price?

Ans: A real estate company can help you in this matter and among many Mir Real Estate would be one of the best options for you.

How can I calculate the rate at which my property is appreciating in value?

Ans: Usually, the value of a property appreciates based on the demand and economy or you may conduct a market to find the rate of increasing value.

How can I buy a home in Dhaka without the hassle of legal procedures?

Ans: If you do not want to go through all the legal hassles before buying a house, Mir Real Estate can assist you.

Is it wise to buy a home for single people who do not live with their families?

Ans: If the person is not likely to stay at the same location for a long period, buying a property is a good idea considering the person has the financial capability.

Best Time to Buy Home in Dhaka

The housing industry in Dhaka is always in motion. The industry does stable business throughout the year. However, the price of the property often fluctuates with time. As a buyer, it is important to keep a close eye on the market to find the best house at the cheapest rate. While no one can predict the housing market industry with 100% accuracy, if we plan and approach carefully, we may find optimum deals. To understand the best time to buy a home in Dhaka, we need to keep a close eye on a few indicators that affect the housing market.

Demand & Supply

The basic rule of the economy states that when the supply is higher, the price will go down. The same applies in the housing market industry as well. To find the best time to buy a home, we need to figure out when the market has an abundance of properties that are ready to sell. Usually, August and September are the months when the housing industry faces a surplus in the market. Hence, the period of August to September is the best time to buy a home in Dhaka. It is important to note that if the demand for houses also rises during this period, the price will not go down.

Interest Rate

Interest rate is a crucial factor in the housing market. A large chunk of the buyers takes home loans to buy their first home in Dhaka. Hence, the interest rate has an inverse relation with the price of the housing market. For example, when the bank interest rate for home loans goes down, more people become willing to buy home. Consequently, they start taking a loan at a lower interest to book their home. However, as more and more people want to buy houses, the demand for houses rises. As the demand for houses rises, the price of the houses also begins to soar.

So, when we take the interest rate into consideration, both high and low-interest rate benefits the different class of buyers. To further elaborate, if the buyer wants to buy a home in Dhaka with his or her own fund, the high-interest rate will benefit him. Since, with a high-interest rate, the number of people willing to buy a home with a home loan will decrease, and the demand for houses will decrease as well. The decreased demand will pull down the price, and the buyer will find a home at a lower rate. On the contrary, if the buyer is willing to buy a home with a home loan, he or she should take a close eye on the bank interest rate. As the interest rate fluctuates very often, regular scanning is necessary. It is important to lock the deal immediately after the drop in the interest rate. Otherwise, the interest will go up again with increased demand for a home loan which was generated from the earlier drop in interest rate.

The Health of the Economy

The housing market is directly related to a country’s economy. If the country’s economy is flourishing, the housing market will become vibrant as well. Hence, the buyers must be aware of these factors. The economic growth of the country will positively affect the housing market. For example, if the economy of Bangladesh substantially grows in the coming years, it will mean more and more people are gaining more purchase power. As more people obtain purchase power, more people will want to buy a house. Then, the demand for houses will increase. As per the rules, with increased demand, the price of the houses will also increase. The opposite will occur during the time of recession. When the country is not doing financially well and the economic growth is declining, it will stop the housing market from blooming. Rather, during a period of recession, the housing market industry usually suffers greatly. Because when the economy is in decline, people are losing their purchase power. As the people lose buying power, the demand for houses drastically goes down. As the demand goes down, the prices for the property fall as well. Hence, if the buyer has funds available, the period of recession is the best time to buy a flat in Dhaka.

Condition of the Real Estate Industry

The real estate industry controls the housing market. The overall condition of the real estate industry will tell dictate the future of the housing market as well. As a buyer, it is important to notice how many players are in the market that are selling houses. The more the number, the better for a buyer. If the industry has lots of players competing against one another, the buyer will enjoy a competitive price. On the contrary, if the market has a few players in the industry, it is usually bad news for the buyers. Because, with fewer competitors in the industry, the real estate companies will not feel any pressure to lower their prices. Rather they are likely to create a syndicate and fix a price that will only benefit them.

So, for buyers, it is essential that the industry has lots of competitors in the market. It will not only bring down the cost for the buyer but will also give the buyers ample options to choose from. Currently, the housing market in Bangladesh is booming. Since 2015 the number of real estate companies has grown substantially. According to REHAB (Real Estate & Housing Association of Bangladesh), there are 941 listed real estate companies in Bangladesh. Over 900 real estate companies are operating in Dhaka. This indicates that the housing market of Dhaka is highly competitive. A competitive market will set a competitive price for the buyers as well. Hence, the buyers of homes in Dhaka are likely to enjoy a competitive price for their preferred houses in the current market.

The Best Time to Buy a Home in Dhaka Depends on The Buyer

The economic indicators such as interest rate, country’s growth, and industry’s growth impact the housing market industry and move the prices of the houses in the industry. However, these indicators may not be helpful to everyone. To buy a home is a very expensive decision. More importantly, it is an individual decision. Meaning the right time will greatly depend on the financial ability of the buyer. When you, as a buyer, are in a sound financial condition, that is the best time for you to buy a home in Dhaka. Here’s how you can realize you have the financial strength to purchase a home:

No Debt

It is never a good idea to purchase a home when you are carrying the burden of debt. Before purchasing a home, you should clear all your previous debt. If you are willing to take a home loan, the existing loan will drastically lower your chances to get the loan. Even if you obtain a home loan, the bank will charge a much higher interest rate. Hence, it is always better to clear out your debt before purchasing a home.

Net Fund

Whether you take a home loan or buy a book a house with an installment payment clause, you must pay the down payment. If you are taking a home loan, the bank will only give you a loan up to 80% of the total price of the house. The rest, 20%, is what you have to pay as a down payment. It is important to save enough funds to pay off the down payment for the house. If you have a larger fund, you can pay off the larger chunk of the price with your own money. It will bring down the loan cost, and you will have to bear the interest payment for a shorter period of time. The fund is also necessary to register the house in your name. The registration process is very expensive in Bangladesh, and the bank will not cover it with a loan.

Income

Your income is another crucial factor determining your financial stability. Your monthly mortgage payment must not be more than 20% of your monthly income. Living in Dhaka is already very expensive. You must manage your income carefully so that you can live your normal life while paying the mortgages each month. The bank will take this into account. If you apply for a home loan for a house that will cost more than 20% of your income in monthly mortgages, the bank will not approve your loan.

Future Goal

If you are willing to buy a home in Dhaka, your future goals should include living in Dhaka for a great amount of time. Because, after expending such a great amount of money on the property, if you are not planning on living in that house for many years, the purchase will not add any value. Hence, before buying the property, the buyer must thoroughly think about his or her future After thoroughly considering these personal factors, a buyer may realize whether or not he or she is ready for purchasing a home in Dhaka.

Summary

A buyer can determine the best time to buy a home in Dhaka by analyzing certain economic and personal factors. While the economy plays a great role in determining the price of the houses, the ultimate ability to purchase the house solely depends upon the buyer. Only when there is a synergy between both the economic and personal factors the buyer will figure out the best time to buy a home in Dhaka.

F.A.Q

How can I know when the home loan interest rate drops?

Ans: There are certain websites that track the movement of the interest rates of our country. These websites may help you. You can also check the bank’s website regularly to check any fluctuations in the interest rate.

How can I know which real estate company offers the best price?

Ans: You have to contact different real estate companies to learn about their price points and compare them yourself. You may also appoint a real estate agent who will help you to find the best price in the market. Currently, Mir Real Estate is offering the most competitive price for its buyers.

How Can I realize that the country’s economy is booming?

Ans: There are few economic indicators to determine a country’s economic growth. These indicators are GDP (Gross Domestic Product), GNP (Gross National Product), and GNI (Gross National Income).

At what age one should buy a home?

Ans: If you are 18 years old, you are legally eligible to purchase a home. However, when it comes to buying a home, financial stability is more important than age. Once you are financially stable enough to carry the cost of buying a home, you can purchase your dream home.

How to pick the right real estate company among numerous names in the market?

Ans: The best real estate companies comply with all the government regulations, uphold all the agreements of the deals, and provide customer satisfaction. Mir Real Estate has been maintaining all these criteria and established itself as one of the most esteemed real estate companies in Bangladesh.

The Ultimate Guide to Hire a Real Estate Agent in Dhaka

The desire to own a permanent roof over the head has always been a basic requirement of our human race. While evolving, we transitioned from nomads living in caves to building concrete structures in order to keep up with the passage of time and technology. Our needs and purposes change from generation to generation, but the goal of achieving the dignity of a permanent home has remained constant. People are increasingly choosing urban life over rural life as a result of incredible technological advancements, and owning a home in a city like Dhaka is a real challenge.

To overcome the frustration of searching for a perfect home according to specific tastes and preferences, real estate agents emerged as the saviors. Real estate agencies help consumers buy, sell, and rent properties like land, buildings, and houses. A real estate mediator or representative, commonly known as a real estate agent, provides the service representing the firms/agencies. A real estate agent assists potential homebuyers and sellers with sales and marketing. The list of reasons why you should have a real estate agent present during your home-buying or selling process is endless.

Benefits of hiring a real estate agent in Dhaka

To begin with, in a large metropolis like Dhaka, the amount of accessible real estate properties for purchasing is enormous. With so many alternatives, it is nearly difficult for a first-time buyer to select the ideal property based on his or her preferences and budget on their own. If you try to accomplish everything on your own, it may feel like a full-time job. Even if you have chosen the ideal location on your own, you will still have to deal with negotiations and paperwork. For a perfect balance, urban life in Dhaka already requires juggling job and personal life. So, even though it is supposed to be the most valuable memories of one’s life, the quest for home amid these problems will feel like a disappointing experience. Not only will a real estate agent aid you in finding a budget-friendly home with a good neighborhood, but the stress of handling the documents and contacting the sellers will be reduced to half.

Therefore, hiring a real estate agent is without a doubt the best option for a time-saving, stress-free property buying experience in Dhaka, as well as avoiding being deceived in any form. It is an absolute must for a lasting and cherished memory of buying a home.

Hiring the best real estate agent to win the deal

Buying a house is a huge financial decision, and it’s one of the most important choices you will ever make. In this endeavor, a real estate agent can make or break a deal. Indeed, a real estate agent can be your biggest ally to ensure that the deal goes through.

However, due to the large number of real estate agents to choose from, it is challenging to find the right one. Finding a real estate agent with the enthusiasm, personality, and effort you are looking for may make all the difference in your home-buying experience. On the contrary, due to an unqualified real estate agent, it might turn out to be a lot more stressful process than it should be. For this reason, the length of their career in the business or the amount of commission charged by them should not be the only factors while looking for an agent. You need to consider several other skillsets and factors that make them the best fit for you and your needs. Most likely, you’re wondering what to look for in a real estate agent whom you can rely on to satisfy these requirements. Read along and follow these guidelines on finding a real estate agent in Dhaka to make sure you hire a trustworthy and reliable one.

Getting referrals from your network

If you have not dealt with a real estate agent before, ask someone you trust, whether they are relatives, coworkers, or neighbors, for a recommendation. Those who have gone through the complete process of buying a home with the help of a real estate agent are likely to be a useful source of information for you. Moreover, agents who have worked with customers like you are the most preferred ones. Besides that, you will also be told if any of the candidates aren’t good enough so that you can avoid hiring them. There is, however, a great deal of research to be done even if an agent has been referred to you by someone you trust.

Consider the area of expertise

There are a large number of real estate agents available in Dhaka, but one thing to keep in mind is that each one has a certain area of expertise. For example, some may specialize in residential or commercial property, whereas others specialize in land or other real estates. Agents that specialize in dealing with first-time homeowners, veterans, investors, older citizens, luxury properties, and vacation homes are categorized as residential real estate agents. Hence, choose an agent with greater expertise in the kind of deal you are interested in.

Find an agent acquainted with the neighborhood

If you have a list of potential agents that you may work with, you should exclude those who are unfamiliar with the area where you wish to move into. Be certain to ask questions about the neighborhood during the in-person interviews to discover whether the agent is a local expert. An experienced local real estate agent may be worth your time and consideration since he has the highest chance of getting the finest offer in the area.

Research potential agents’ online presence

Once you’ve narrowed down your top candidates, social media is another great way to find an agent. This may not be considered to many as a good source for finding an agent, but it’s a strong indicator of how tech-savvy the agent is and how eager he is to give his services. It’s a good idea to check out the websites and active social media accounts of your possible real estate agents before making a final decision about hiring them. These platforms often include a list of prospective services you may get from him, as well as testimonials from prior clients. Compare the reviews. One or two unfavorable reviews aren’t a big deal, but more than that might be a warning sign. Besides, observe the pattern of the agent’s response to negative or neutral reviews since this may provide insight into the agent’s personality.

Check the agent’s references

When interviewing, request the agent to provide a list of previous clients with their contact information. Get in touch with those clients to learn more about their experience and what kind of help their agent gave, especially during negotiations. Calling previous customers may seem like an unnecessary effort, but you may receive a lot of information by speaking with actual clients who have dealt with the agent. They’ll probably be nice about the agent, but ask them some detailed questions to get the truth. A negative response right away is a huge red flag. Make sure to ask if they would hire that agent again for their next home-buying process.

Years of Service

It’s possible to find good real estate agents who have only been in the business for a few years and others who have been in it for decades with disappointed clients. Experience is not the best indication of reliability. However, it still is helpful to consider their years of experience as criteria for selection as a veteran agent is expected to be well-equipped to handle any unusual paperwork or glitch in the system. Also, how many deals they’ve closed in the previous years can show how well they know their business.

Available resources up the sleeve

Closing a home purchase transaction is a lengthy procedure that involves the completion of multiple stages of paperwork. Routine tasks involving loan providers, developer companies, repairmen, inspectors, movers, and other service providers demand timely and efficient management. Most people are not suited to handle all of these. The potential real estate agents, on the other hand, must have a wide network of contacts and resources at their disposal.

Interview the potential agents

A real estate agent’s attitude, expertise, preferred method of communication, and availability may all be learned through an interview. The agent will also be able to better grasp your wants, expectations, and budget by having a conversation with you. However, you shouldn’t hire the first agent you meet. With various agents, you will be able to compare in order to choose the right person for your needs. When interviewing multiple agents, ask the same questions and analyze their replies. It’s a good idea to note down any questions you have ahead of time.

An efficient method of communication

An agent’s mode of communication is one of the most important factors to consider while hiring one. It is essential that you maintain regular contact with your agent to seal your deal successfully. Discuss how frequently you can expect to hear from the agent and how they will keep you updated. You and the agent may not be a good match if you prefer email while the agent responds better to phone conversations. Furthermore, if you know you’re going to have frequent queries and want answers quickly, but the agent usually only calls or emails very rarely, you might want to look for someone else. If you like to communicate mostly by text and plan to see properties after regular office hours on weekdays, look for an agent who is flexible enough to do that for you.

Determine their availability

Acquiring a property is a lengthy process that demands hours outside of the regular office hours. The heavy workloads associated with finding and securing a good deal require a significant amount of effort. Hence, it all comes down to how much time they can commit to your individual demands. So, find an agent with a team of assistants to help complete the job.

Listen to your instincts

Within the first few minutes of meeting someone, most people develop a sense of whether or not they will get along with them. Avoid using a real estate agent if you have a bad feeling about him despite the fact that everything checks out. As buying a home is a huge deal to you, it’s critical that you hire an agent with whom you have a strong sense of trust and confidence. Follow your instincts. An agent who just cares about the commission rather than the deal’s success should be ruled out from consideration.

Summary

In a competitive housing market, a skilled real estate agent can help you find the perfect home at the right price while staying on schedule and within your budget. A qualified real estate agent is more than simply someone who can get you the best bargain possible such as a deal with Mir Real Estate in this buzzing city of Dhaka. If you’re looking for someone to assist you through the home-buying process, choose someone whom you can rely on to be trustworthy, and competent, and to provide you with professional guidance.

F.A.Q.

Is it really necessary to hire a real estate agent?

Ans: Of course. Real estate agents are worth your time and consideration. The key to a stress-free and successful home-buying experience is working with a real estate agent who has the expertise to guide you through the process.

How can you choose between two top real estate agents?

Ans: Relying on client reviews both online and offline is the best method to choose between potential real estate agents.

How can you be sure that your prospective real estate candidate will provide you with top-notch service?

Ans: Invest time and do proper homework before hiring a real estate agent. Signing a contract with a reputed real estate agent can guarantee top-notch service.

Do real estate agents assist in completing your paperwork?

Ans: Real estate agents can help you handle all the documentation in the home buying process, including lease deed, survey records, registry copy, and mutation certificate, among other requirements. Before assigning an agent you should check the essential real estate terms.

How can you know if someone is a trustworthy real estate agent?

Ans: Read client reviews and follow your instinct, and do not forget to sign a contract while hiring a real estate agent. A reputed real estate agent can be a trustworthy ally in making your dream of owning a home come true.

Frequents Mistakes That New Homeowners Make in Dhaka

Buying a home is a daunting task. You have to be very cautious of every step you take while purchasing your first home. The entire process is a big learning curve for a new homeowner, and the curve continues even after closing the deal. Once you finish your legal procedures of purchasing a new home, the task of designing your home according to your need begins. You need to carefully make decisions about the layouts of your rooms, electronic system, and color of the walls. Your decision regarding the interior design of your home will dictate your future satisfaction. However, the new buyers often fail to think about the future needs and make rushed decisions regarding their homes. One small mistake becomes a bone in the throat for new homeowners in the long run. Here’s a highlighted list of mistakes to avoid as a new homeowner.

Floor Plan

The floor plan of your home is one of the most significant decisions that you will make after closing the deal. The layout of your home will decide how much space you will get in each room. To avoid mistakes as a new homeowner while fixing your floor plan, here are a few key points you should be mindful of.

Plan According to Lifestyle

Usually, in Bangladesh, the family consists of four to five members, including the parents and children. The floorplan has to cater to the lifestyle of each of the family members who will occupy a room. For example, if your family has teen-aged members, they are likely to wish for a separate room with a separate washroom. The older members of the family may wish for an attached balcony with their room. The kids may wish for a large sitting room where they will be spending most of their time. As a homeowner, you need to take into consideration all the personal preferences of yourself and your family members before finalizing your floor plan.

Renovate Responsibly

New homeowners are often eager to renovate the entire space for their own benefit. However, they often think as per their short-term needs and fail to see the long-term impact of their renovation decisions. For example, you may wish to have an extra-large master bedroom. To create the extra space for your master bedroom, you cut down spaces from adjacent rooms. However, in the future, when your family grows, you realize that you require that extra space that you initially cut down. It is common that people bring down walls of their homes and renovate after a few years to cater to the demand of other family members. This is not only expensive but also ruins the entire layout of the flat. However, it can easily be avoided if you take your renovation decision thinking about the future and maintain a certain universal design.

Windows

If your home is in an urban area, you are likely to be surrounded by other buildings. Most of the houses in Dhaka and Chattogram do not receive ample natural light due to the obstruction from other adjacent buildings. If the inside of your house stays dark, it is detrimental to both physical and mental health. While choosing a floor plan, ensure enough light and ventilation for your room. Design large windows that will allow enough natural light and airflow. It will not only lighten up the entire room but will also help to keep your mind fresh.

The Color of Your Wall

Once you enter a house, the first thing you notice is the color of the walls. The paint of the walls has the power to make a low-budget home look like a luxurious flat, or it can make a luxurious home look like a cheap flat. You need to be very careful before selecting a particular can of paint. The colors on the walls will paint not only your walls but also your personality as well.

Most people choose various shades of white as one cannot go wrong with the color of white. It is a safe play. However, white makes the interior look bleak. While the choice of color highly depends on individual preferences, there are a few key aspects one should consider while choosing the color of the walls.

Test Before Committing

Do not pick a color from the store and paint your walls. It is always a good idea to buy a sample can first and apply it to your walls—test different colors before making your final choice.

Consider Adjacent Rooms

A common mistake while choosing the paint of walls is not considering the adjacent rooms. Your flat must have a cohesive color palette, and each wall should complement the other. There should be a mutual flow of colors among the walls. You must not choose drastically different shades of color for different walls.

Mood and Purpose

As a new homeowner, before deciding upon the colors of the walls, you should ask yourself what the purpose of the room is and what mood that room requires. For example, your sitting room serves the purpose of family gatherings and greeting guests. The room needs to maintain a light mood. Hence, you should pick a light and cheerful color for the sitting room of your home. If you have young members in your family, they will want something colorful on their walls. Hence, it is a good idea to paint the different rooms to the preference of the family members who will occupy the room.

Natural Light

Another key aspect of painting your interior is the natural lighting. The natural light will highlight the truest color of the walls. If your home has large windows and receives ample daylight, you can choose a slightly darker shade that will absorb the natural light just enough to give your interior a calming look. However, you should also consider at what time you will use the room. If you mostly use the room at night, you can choose colors that will allow you to set the mood with the help of electronic lights.

Flooring

The flooring is another key part of designing your new home. You will put your foot on the tiles you decide on for the rest of your lives. Hence, you should be very careful about choosing the types of tiles you will choose for your flat. A common mistake that the new homeowners make is that they pick relatively cheaper tiles for their homes. However, in the long run, this decision proves to be a headache. Cheap tiles will not last long and are likely to break upon the impact of slightly heavyweight objects. Another issue with cheap tiles is that they are made with cheap materials. In winter, cheap tiles will become wet and stay colder for a longer period. To avoid such problems, new homeowners must install tiles of great quality in their homes. Tiles are long time investment. As your body will be in physical touch with this part of the house, you should pick the best quality.

The color and design are other important aspects of flooring. The color of the tiles must compliment the color of the house. If the walls are bright, the tiles should be of a darker shade. On the contrary, if the walls are of a darker shade, the tiles should be of a lighter shade of color. Currently, there are various types of designs available for tiles. You can pick a design as per your own taste. However, you should keep in mind that the tiles of your home should provide a calming sense. So, you should pick a design that is easy and pleasant on the eyes.

Plumbing

The poor plumbing system is an issue all over the world. If the plumbing system is not up to par, it will malfunction after some time. When that occurs, you will need to fix it regularly. This will become a matter of great concern and discomfort for each member of the family. Oftentimes, new homeowners make the mistake of not properly checking the systems underneath the bricks. Buyers get so busy with the outer look of the house that they do not pay much heed to the plumbing system of the house. To avoid future issues, new homeowners must install the highest-grade material in their plumbing system that is durable and will last long in the future.

Electronic System

Modern-day homes are decorated with electronic appliances. There are numerous home appliances and electronic entertainment systems that have become a part of our daily lives. You need to ensure you have proper electrical lines set up across your home to power your electronic devices. Your home must have enough sockets and switches. You should choose the best quality materials to set up an electrical system.

Kitchen

The kitchen is one of the most integral parts of your home. The kitchen is responsible for your food. As the kitchen is directly connected to your food consumption, you must design your kitchen in such a manner that it only provides ample space to safely cook but also provides enough utilities to maintain proper hygiene. Your kitchen should have a cabinet system all around the ceiling that will provide ample space to keep all the cooking utensils. The burner should be set on open space, and around the burner, there should be enough space to freely move around. The kitchen should also have a very large sink. Another key element is a fire safety device. Ensure your kitchen features a fire safety device for emergencies.

Exterior

The outside of the carpet area is also very important. Modern-day houses come with very small balconies. The urban area is already very congested. People feel congested and want to breathe freely after coming back home after work. However, small balconies make people feel more confined. Hence, it is important to ensure large open balconies. Large open balconies will not only allow you to breathe freely but will also provide the home with ample natural light. Further, the family members can sit on the balcony in the afternoon and spend family time over a cup of tea.

Summary

After closing the deal, the daunting task of designing and shaping the home fall upon the homeowner. It is never easy to deal with numerous critical decisions at once. Hence, the homeowner should approach the task step by step. From deciding upon the layout to deciding the color of walls, the homeowner must think critically about the preferences of each family member and future possibilities. Only then will the homeowner avoid the mistakes that most new homeowners usually make.

F.A.Q

How to find the optimum floor plan for my flat?

Ans: You can appoint an interior designer to set an optimum floor plan for your home.

Where to find houses with large windows and balconies in Dhaka?

Ans: The houses built by Mir Real Estate features large windows and wide balconies in Dhaka. You can contact their salesperson to receive the catalog of their designs.

How much renovation can I do to my flat?

Ans: You can renovate your house as much as you want without disturbing the core infrastructure of the building.

Where can I find flats that feature a modern kitchen?

Ans: The flats from Mir Real Estate come with all the modern amenities. They are designed to cater the need to modern-day consumer needs.

How to pick the right color for my apartment?

Ans: The right color for your home highly depends on your own taste and preferences. However, you can appoint an interior designer who will explore the best options for you according to your taste.