9 Frequently Asked Questions That People Ask About Real Estate

Amal Ali 29 Jun 2022

As in any sector or field, many questions come to people's minds. And buying or selling a property is a journey filled with questions that can be confusing sometimes. In this article, we will try to help you answer some of these questions.

1. How much do I need for a down payment?

The financial aspect is one of the main factors that dominate the real estate purchase process. People are confused about their ability to determine a specific amount to pay as a down payment and what percentage is appropriate for them. The down payment is the percentage that the customer pays out of the total amount, and the required down payment ranges from 5% to 10%. While it is always recommended to pay a higher down payment such as 20%. The higher the percentage of the down payment, the lower the value of the installments that are paid and the easier it is for you to pay them, and the lower the value of the interest that is increased in the case of installments. We always advise you to consult with your real estate broker and tell him the limits of the amount that you intend to pay as a down payment, and he will help you in getting an offer that matches your financial plans.

Check this article Glossary for real estate terms important words in the Egyptian market.

2. Is it possible to negotiate the commission rate with the real estate agent?

In case you decide to benefit from the experts, whether a real estate consultant or agent, you should expect to pay a percentage of the money in exchange for the service that he will provide you with. It is commonly known that the commission is paid upon the closing of a sale or purchase transaction. Therefore, you should always ask about the commission amount at the beginning to avoid surprises at the end. Some companies can provide real estate consultancy and services without getting any commission from the buyer.

There are always percentages ranging from the amount of commission that you will be charged and the percentage varies if you are the seller or the buyer. The commission rate can always be negotiated, especially in the initial stages of the service, and you can reach with your real estate advisor to a mutually satisfactory rate, whether he works individually or within a company. Usually, the commission rate ranges from 1.5% to 2.5%. But we always recommend that you abide by the prior agreement between you and your consultant.

Learn in this article 4 things that will interest you about the current Egyptian real estate market.

3. How long does it take to buy or sell a home?

Several factors determine how long the process of buying or selling real estate takes. The most important of these factors is the season in which you begin to search for a property or offer it for sale.

The real estate market, like other investments, is based on the principle of supply and demand. Real estate is on-demand in certain seasons of the year. It is not possible to ascertain a specific time as it can vary according to the circumstances of each season. You may find the right home for you within a week, or the search process can last for months.

But there are certainly some factors that can speed up your process:

You have to put a financial plan in advance. It should be clear and detailed before you start searching for real estate.
You have to specify your desires and needs in the house or property to concentrate on what you need and not get overwhelmed.
Set a time limit to make up your decision so that you do not waste time inspecting real estate, which increases your hesitation.
Do a market search before buying or selling and check the appropriate times to put up your property or search for a home that suits you.
Save yourself the time and hire a real estate expert

This article will provide you with some tips to get your dream home 5 tips to consider before buying your home.

4. What happens if I decided to back out of buying a house?

One of the situations that confuse all those who are about to buy or sell real estate is the question of whether the agreement can be reverted for any reason without incurring penal conditions.

In the current situation of the real estate market and the high competition among all projects and the advantages that each project can offer, the buyer may get confused after making the decision and resort to retracting the purchase. Also, the seller may get a better financial offer after agreeing with one of the buyers.

The simple answer to this question is yes, the seller or buyer can withdraw from the agreement. But there are two cases of cancellation by any of the parties. Before signing the contracts that do not put penal conditions on either party, but in referring is to the termination of the deal, the contracts may include some clauses that specify penalties for the party who breaches the contract and cancels the agreement.

Of course, you should increase your knowledge about the contract details and how to avoid mistakes in them to avoid disputes later. Here, we offer you this guide 6 key points that will help you avoid mistakes in real estate contracts.

5. Do I need a real estate agent or consultant?

Many people are confused in deciding as many customers are thinking of avoiding the help of a real estate consultant or agent to reduce the material cost, whether for the seller or the buyer. Certainly, at this point, you should rely on your judgment of the situation. But we can help you explain the advantages and disadvantages of both options.

If you decide to rely entirely on yourself, you will save an amount of money without paying it to the real estate advisor, but on the other hand, the process of selling or buying a property may take much longer because you lack market experience. In addition, you can fall victim to any kind of fraud if you do not take precautions to protect yourself.

In case you resort to the assistance of a real estate agent or consultant, you will sacrifice an amount of money in exchange for a customized service that serves your benefits and needs, also, you will reach results faster. The real estate agent also provides you with guarantees that protect you from any manipulation. As mentioned before, you can negotiate from the beginning the commission rate and reach a percentage that is to your liking. We always advise you to deal with credible and experienced real estate agents and to stay away from individual brokers in case of the absence of guarantees or prior knowledge.

If you want to know more about real estate consultancy, read this article about what real estate consultancy is and how you can benefit from it.

6. What are the services that a real estate advisor can provide to me?

The services that the consultant or real estate agent can provide to you are varied, making it easier for you to get all the services you need from one reliable place.

Services vary to include:

Free consultations (you can get it easily by simply communicating directly with the real estate office and asking about what you want)
Searching for real estate and submitting offers (here you can request him to do market research for what suits your needs and start meeting with you to inspect the properties and reach a final deal)
Legal services and closing of contracts (the real estate advisor helps you understand the legal procedures for contracts and helps you close your deal correctly and legally)
Finishing and home decoration services (if you want to receive assistance in finishing your home, you can certainly use them to take over this task as well).
You can also put up real estate for sale through real estate offices, so you will receive buying offers faster.

7. What is real estate investment?

At present, with the boom in real estate, the ability to make profits, and stability in the face of crises, many people are wondering about what real estate investment is.

Simply put, real estate investment is a sector that focuses primarily on making a profit and increasing the financial return. Real estate investment is limited to buying and selling and establishing investment projects only. The real estate investor seeks to spend appropriate capital to achieve material returns without interfering in the real estate development process. The investment is often in a plot of land or real estate for a specific period to buy and sell and then moving to invest in other units or real estate.

If you want to increase your knowledge of real estate, you can increase your knowledge of The Most Popular Real Estate Types & Units In The Egyptian Market.

8. What are the types of real estate investments?

If you are considering real estate investment, you can choose between many types according to your preferences and your ability to pursue your investment.

Choose from:

Residential real estate (the most popular type)
Commercial real estate (whether shops or residential buildings designated for investment)
Administrative and medical (one of the most requested investments for specialists)
Plots of land

The new administrative capital is considered one of the largest national projects supervised by the government in cooperation with the private sector. Part of the vision of the New Administrative Capital is to become a center for investments, so we advise you to browse this guide your guide to investing in the New Administrative Capital.

9. Is real estate investment guaranteed?

Real estate has proven over the past decades that it is one of the largest and strongest sectors that can overcome crises and maintain its financial value in addition to achieving stable profits. It is always advised to consider starting a real estate investment even for non-professional individuals. It is a sector that allows you to start your investment and gives you the ability to follow it. One of the biggest positive elements of real estate is that it guarantees you long-term financial profits. The sooner you start your investment, the faster you can get the desired profit.

For further information about the real estate sector, you can follow our weekly articles. Also, you can browse our website for the latest real estate projects.