Buyers Guide

Considerations before buying a property
Real Estate Agents
Visiting the property
Utilities
Finalizing the Deal Contacts

Considerations before buying a property

When looking for a place to buy, it is important for you to know exactly what you are looking for. This understanding will make the process so much easier and more efficient. Below are 5 of the most important characteristics that will guide you towards finding the perfect property to purchase.

Location

Location is the single most important thing to consider when searching for a property. Consider specific points of interest that you feel are a necessity to have around you, such as a supermarket, public transportation, a park, the beach, etc. Also try to get a feel for your neighbors and people who live and work around you. You want to choose somewhere that you will be comfortable and happy being for years to come.

Size

Properties come in many different sizes from skyscraper buildings with massive units all the way to single family homes. Consider how much space you need the property to be in order to handle the amount of people that will be staying there. Unlike renting, you must consider the long term when buying a place. Knowing your ideal size and approximate measurements in meters squared is important to finding the perfect property to buy.

Age

You must consider the age and condition of the property. Generally, older properties may need renovation and might lack some modern comforts, so be aware of when the property was constructed and the renovations that were already made.

Amenities

Considering what amenities you need and want is essential. Determine what features you MUST have in order to consider buying a place. Examples of amenities include private parking, security, swimming pool, etc. Making a list of required amenities will really help you screen the different properties and choose the right place for you.

Price

Calculate your budget and set a maximum amount you are able to pay. This will allow you to view the properties that are affordable and right for you.

Real Estate Agents

Agents must be part of any property purchase in Kuwait. Agents will assist you in searching for the right property for you and show you each of the properties that match your criteria. Sometimes one agent will represent the buyer and the seller and sometimes there are 2 agents representing each party. It is extremely important to find the right agent for you.

Below are some questions to ask the agent before accepting his services:

  • How many areas do you cover?
  • How many properties will you show me?
  • How much do you charge if I approve the property?
  • What if I don't like any of the properties you show me?
  • Will I be able to contact you at any time?

A good agent should do the following things for you:

  • Have a written agreement about their responsibilities
  • Learn about your specific requirements; marching your financial situation and lifestyle preferences
  • Understand the real estate market in order to show you the right neighborhood for you
  • Identify individual properties that match your criteria
  • Be able to show you those properties in person
  • Be able to answer any of your questions about the property
  • Connect you with the owner of the property and present your offer
  • Review all legal documentation

Once you are happy with a property and decide to purchase it, you pay the agent for his services. An agent will generally charge 1% of the purchase price and take it from the owner. For example, if you buy a home that costs 100,000 KD, the agent will take 1,000 KD from the owner for selling the property for him.

However, sometimes the owner and buyer will split the cost and you may have to pay 0.5% on top of the property price. Make sure you know the terms and agreements with your agent and owner before making any big decisions. Keep in mind that you are not tied down to one agent and do not have to pay a fee to any agent until they find you a place you are happy with.

Visiting the Property

Once you've browsed different properties and chose your favorite ones, it is time to go and visit them in person. This will allow you to really get a feel for the property and visualize yourself living there. Keep an eye out for the condition of the property because any damage could be used as a bargaining tool for the purchase price.

Below is a guide of things to consider when visiting a property.

  • Get a feel for the neighborhood
  • Check for outdoor damage
  • Check on the property's foundation
  • Check if the floors, walls, and ceilings are in tact
  • Check the doors and windows
  • Check the plumbing and sewage system
  • Check the ventilation and insulation system
  • Check the cooling and heating systems
  • Check the electricity, wiring, and outlets
  • Check the dishwasher, washing machine, oven, and other appliances
  • Check for security and smoke detectors
  • Ask about past renovations of the property

Utilities

Before you make a settlement on a property, it is important to ask about the utilities of the property. Below are some utilities you should ask about, whether they can be transferred from your existing property or if they can be set up afterward.

  • Water and Sewage
  • Electricity
  • Natural gas
  • Telephone line
  • Cable/Satellite TV
  • Internet
  • Trash Collection
  • Security system

Also make sure that the previous owner bills are settled and transferred. Make sure that all the utility companies are aware that the previous owner will be moving so you dont get stuck with the bills. Also ask about other services such as gardening and cleaning that the previous owner could recommend for that neighborhood.

Finalizing the Deal

Now that you've found your favorite property to purchase, it is time to close the deal. This will involve a good deal of paperwork so be prepared for it. Listed below are the steps to be taken when finalizing the deal:

  1. Prepare the final contract between you and the seller. Make sure the contract is clear and includes everything that you agreed to with the seller.
  2. Downpayment of no less than 10% of the total price when signing the contract with the seller.
  3. Final payment is paid after registering with the ministry of justice on the purchase of your new property.
  4. Pay a 1% brokerage fee to the agent that assisted in making the transaction.

Contacts

  1. Kuwait
    1. Ministry of Social Security
    2. Ministry of Housing
    3. Ministry of Religion (Provide Information on Islamic Financing Options)
  2. Kuwait Housing Committee