How to strike the best deal when buying a home

• Real Estate Negotiation Tips
• FAQs

The UAE property market offers a veritable treasure trove of opportunities.  If you are looking to purchase a property in the UAE, here are a few real estate negotiation tips for buyers that will come in handy.

REAL ESTATE NEGOTIATION TIPS FOR BUYERS

Whether you are an experienced investor or a first-time home buyer, these negotiation tactics can help you get the best deal for your desired property.

RESEARCH

• Many home buyers put complete faith in the seller and skip this step, but it can help you get the best deal with a landlord, developer and real estate agent.

• Analyse the price trends from various property market reports to assess the overall sale price for the properties in the area and gauge the return on investment (ROI). If you are looking to buy property in the UAE, Bayut’s Dubai sales market report for 2022 or Abu Dhabi real estate sales report for 2022 can come in handy.

KNOW THE ALTERNATIVE OPTIONS

After analysing the market, you should have a fair understanding of where and what type of property you want to invest in. Once this is established, the next step is to figure out what is the best alternative to the property you want to purchase:

• When examining your best alternative, a good practice to follow is to compare property prices of similar properties in the area. 
• Make sure to weigh up factors like space, location and condition of the property, when trying to find your best alternative. 

Let’s say, you want to buy a 3-bedroom villa in The Springs for which the starting sale prices are AED 2.5M. Your best alternative to this could be to buy a 3-bedroom villa in Jumeirah Village Circle, where the sale prices start at AED 1.6M. Both of these neighbourhoods are located close to each other and have a similar community lifestyle. Yet there could be a variety of factors at play which results in the difference in price. You have to consider all in making your final decision.

KEEP A MARGIN WHEN NEGOTIATING

• When dealing with a property developer or agent, quote a lower amount than your actual budget. The agent, will, in general, quote higher than the price you suggest. So, quoting less than your budget can inevitably help you to get the property within your original budget.
• Refrain from giving your best price at the start of your discussion, so there is room for a bargain.

FAMILIARISE YOURSELF WITH THE SELLER’S NEGOTIATION TECHNIQUES

• When negotiating with a real estate agent or property developer, be mindful of the fact that they have their own objectives when selling a property to you. Whether you are investing in Arabian Ranches or any other place, a seller’s main objective is to make the sale.
• A seller will provide appealing offers to convince you that the property they are showing is the best. This is when you should be objective and analyse the pros and cons of the offers made during the property deal. 
• When factoring in the merits and demerits of a property, ask yourself: “Is this the kind of estate I want?” If it is something that doesn’t resonate with your needs, it’s best to take a look at alternative options.
• If negotiation is not your strong suit, do some studying, consult with negotiation experts, attend seminars or sign up for classes. You can also check out some video tutorials on YouTube.

BE HONEST WITH YOUR SELLER

Our next tip for home buyers on how to effectively negotiate a real estate deal is, to be honest with your seller:

• The seller isn’t your enemy; if you notice the property you are looking at has a few defects, it is best to tell the seller.
• Similarly, if you are unsure about a property and need some time to look at other options before making the final decision to buy, inform your seller.

Looking for more tips? Analyse the pros and cons of buying a property in Dubai/UAE. Know the advantages and risks of buying a property directly from an owner in Dubai.

FAQs

WHAT MORE SHOULD I BE AWARE OF, WHEN BUYING A PROPERTY IN THE UAE?

The most important thing to do is to familiarise yourself with the top real estate terms in UAE. You can also learn about the most common mistakes when buying a home such as rushing into a deal, lack of research and not seeking professional help.

CAN I BUY AN OFF-PLAN PROPERTY IN DUBAI?

Yes, you can. Make sure to consider these factors when buying an off-plan property in Dubai.

WHAT IS THE COST OF BUYING A PROPERTY IN DUBAI?

The eventual cost is contingent on a number of factors that include everything from property type and location to upfront charges and service fees. Read our guide on the cost of purchasing a property in Dubai to find out more.

That’s our round-up of negotiating tactics for home buyers in the UAE. If you and your spouse are interested in investing in property in Dubai, consider this investment advice for young couples.

Looking to buy a property anytime soon? Start your investment journey with some of these freehold areas in Dubai.

For more investment tips and information about UAE’s real estate sector, stay tuned to MyBayut!