To build a house takes a lifetime, and to build a home takes hardship of years and decades. At the ned of it, you want your property to be valued. There are both tangible and intangible metrics for valuing your property. And when it comes to real estate, the role and the importance of Pearl Certification go manyfold. Let us find out the importance of Pearl Certification related to Real Estate Authorities.
Pearl Certification is highly valuable for highlighting energy efficiency and property value. Even though it is not directly recognized or mandated by the real estate authorities in Dubai, specifically the Real Estate Regulatory Agency (RERA). However, the Pearl Certification is a primary tool for real estate agents and appraisers to showcase the value of high-performing home features, like solar panels and energy-efficient HVAC systems.
Importance of Pearl Certification
The Pearl certification is of great value and importance. It is useful for both parties. It is used to support property valuation and highlight the added equity. The importance and the value that a Pearl Certification has in the real estate industry can be summed up under the following headings:
1. Highlighting Property Value
The Pearl certification is an important determinant in highlighting the value of the property. This report helps agents and appraisers demonstrate the increased market value of properties with energy-efficient features. This no doubt helps in raising the price of the property, and the value added to the property becomes an additional factor for both the sellers and buyers.
2. Supporting Valuation
Another important feature of Pearl certification is the supporting valuation for the reason because the report provides data and documentation to support property valuation. The key points that are considered for determining the valuation are the Comparable Sales Approach, Income Approach, and Cost Approach.
3. Appraisal Addendum
Appraisal addendum means the reports that you receive and can cite to substantiate your point. It includes the Appraisal Institute Green and Energy Efficient Addendum, allowing appraisers to cite the report’s findings to support their opinion of value.
4. Marketing Tool
It is a great marketing tool. Pearls offers a professional marketing package to help agents promote certified listings and stand out in the market. It is purely a tool to market the value of your property.
RERA and Real Estate Licensing in Dubai
PERA is a statutory authority that looks into the affairs of real estate in Dubai. The power of implementing rules and issuing licenses rests with PERA:
1. RERA’s Role
Real Estate Regulatory Authority, also known as RERA, is a regulatory entity for real estate activities in Dubai. The primary responsibility of this authority is to ensure that fair and ethical practices are followed in letter and spirit. It has to ensure that no set rule or regulation is violated by any firm, company, or individual.
2. Licensing Requirements
Having a valid license is mandatory for any kind of real estate operations in Dubai. You must have a RERA license. This is obligatory for real estate agents, brokers, and agencies operating in Dubai.
Relationship Between Pearl Certification and RERA
Now, the question is, what is the relation between Pearl certifications and RERA? The answer to this question is explained as under:
1. Not Mandated by RERA
In order to obtain or maintain an RERA license, it is not required to have or provide a Pearl certification. Pearl certification has nothing to do with the RERA license. So, it is not required by the law of the land. This is purely an activity that is carried out by private individuals out of their own goodwill.
2. Complementary Tool
Pearl certification is a complementary tool. It is not mandatory. You are at liberty to either have it or not. This certification is not mandated by RERA. However, Pearl certification can be a valuable tool for real estate professionals to enhance their services and demonstrate the value they bring to their clients.
Wrapping Up
So, it has come to the fore that Pearl certification is carried out by real estate entities like Nobel Horizon to highlight the energy efficiency and property value of their properties. On the one hand, it increases property value; at the same time, it is quite instrumental in gaining consumer trust and customer satisfaction. So, when we talk about the Pearl Certification related to Real Estate Authorities, it can be said that the Pearl certification is no doubt helpful. How helpful? This question has been answered in this article. Go through the article about it and more.
