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Investing in luxury real estate in the Cayman Islands is a crucial decision, as it’s a long-term commitment toward your future. This is why most individuals research the current market, evaluate the home equity, and examine the property’s condition before actually spending a penny.
However, quite often, it has been observed that certain myths or exaggerations overshadow your knowledge and analysis regarding this industry; hence all of your efforts go in vain, leading to hindering your house-hunting process.
So, here we are, bringing you this article to break the myths and correct the misused analogies about the real estate industry.
Myths as per Seller’s Point of View
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The Condition of Property Doesn’t Affect the Deal
False! Firstly, yes, it does affect the deal because no buyer wants to invest in a dilapidated property. Buyers expect your home to be in excellent shape, so always put your best foot forward by maintaining a clean and well-prepared home, easing the stress of the buyers financing their capital into the property.
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Listing an Exorbitant Price of Your Property
Advertising your property at a high ticket will not make up the leeway. Moreover, there is a great plausibility of you losing potential buyers for your home. Instead, list an actual market value of the property that will attract more customers, and you can choose one which you think offers you the best price.
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Fix the Issues Before Listing
Like mentioned earlier, buyers are always looking for prime property, and since you are the seller, you want the best price possible for your property. Therefore, fix the issues in your property that always bothered you throughout your stay – for instance, the broken door knob, damaged jet, cracked roof, and wobbly handrail.
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Closing a Deal is a One-Time Conversation
Truth be told, many investors believe in this misconception, although that’s not how it works. Putting hard-earned assets in a property is a large resolution, which buyers want to settle for after a lot of consideration. On that account, expecting to lock a deal right away is nothing but a myth.
Myths as per Buyer’s Point of View
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Prices Will Go Down if You Wait
You might have heard a phrase called, “patience yields the desired result,” regardless that’s not the case for everyone every time. Sometimes waiting can lead to regrets. Let’s say you found a property for sale in the Cayman Islands and decided to wait to purchase it after the pandemic, believing the prices might decrease. Later you found that prices doubled instead of declining. In order to secure the property, you have to compensate 2x than the previously offered price, which will burn a hole in your pocket.
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The Cayman Islands Real Estate Will Depreciate
Various investors are conceiving their opinion on the current real estate condition of Cayman. Be that as it may, a few facts contradict that opinion. According to statistics, A whopping 97% or more condos were sold in the first half of the year 2021 compared to 2020. The year 2021 witnessed an 18% increase in the number of single-family home sales, as opposed to pre-pandemic figures in 2019. On top of that, sales volume in 2021 embarked a record of $1.054 billion, higher than in the year 2020, which was 51.9%, and 64.6% in 2019. Looking at overall figures, it is affirmative to say investing in Grand Cayman real estate is a lucrative alternative and will continue to spectate a considerable increase in the foreseeable future.
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Show Up With All-in Cash to Finalize the Deal
Buying the property of your dreams is incredible, but that doesn’t mean you will go with an all-cash without any contingencies. Having a contingency plan is an ideal option though you have to be wise about it’s structures. Further, you can opt for a mortgage from your local lender, ensure you get it pre-approved from the same.
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Negotiation is Not Possible With an Overpriced Property
Let us also burst that bubble for you. If you feel the offered value is not reasonable, you can always negotiate and come down to a mutual decision that is acceptable for you as well as the seller.
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Buying an Off-Market Property to Get the Deal
Numerous potential homebuyers conjecture upon the thought of purchasing an unlisted property to save on commissions and maintain privacy. No matter how tempting these offers look, there are high chances you might invest way more than you actually planned. Also, be prepared for some rejections owing to the fact that there can be homeowners who are not willing to sell.
Needless to say, you can certainly search for properties not available on sale, barring you might not get what you are looking for, and even if you do find it will be on the homeowner’s terms and conditions.
To Conclude
This was our take on busting the most prevalent myths of the present real estate conditions of the Cayman Islands. All in all, acquiring a plush property in Cayman is the best choice for a secure future, which is why our advice for you would be to get in touch with an experienced local agent who can guide you on the current market needs.
