You’ve been working so hard that you’re able to purchase a home in Dubai. The time has finally come that buying a new property is now your priority and everyone’s seems so excited about your biggest life investment. Let’s say, you have found the perfect home, everything is set, you’re so much into that home and you’re decided that this is the one for you and your family.
But what’s next? When you’re buying your new home, investors or property buyers must learn how to negotiate and come up with a nice property deals. However, you don’t want to seem too eager to snatch the property that you’ve been eyeing but you also want to make sure that you aren’t overpaying - so you need tactics.
Once you’ve become truly familiar with the process of buying a property in Dubai, it also does help to understand some of the basics of negotiation. We have come up with essential techniques and tactics that you should consider in order to help you score the best deal when purchasing your first ever home in Dubai.
Be Informed
The first thing you should do before purchasing a house in Dubai is to research. Thoroughly research the market and look at recent house sales in and around the area and use the figures as your bargaining tool. As much as possible, identify the price of sold property in the area and figure out which is property market trending in that location. Additionally, you can check our Dubai real estate buying guide for you to identify the full process required when purchasing a property in Dubai.
Take A Closer Look At The Property
It is essential to take a closer look at the property. You must identify all its features and bring up if there are any problems that you think you might encounter in the future. You can use these drawbacks to adjust your offer accordingly if it's possible to identify how much is the cost to fix the problem and use this as your reasoning to get a good deal.
Questions you should ask include:
What is the reason for selling?
Are you looking for a quick sale?
How long have you been selling this property?
How much is the asking price? Is it negotiable?
Are there any property issues, such as defects and pest problems?
Learn About The Seller
If you know the reasons why the seller is selling his property then you can definitely use that as your negotiation advantage. It is important to identify what exactly they are looking for a buyer, as much as possible try to figure out what are their future plans. For example, the owners have already purchased a new home and they are planning to move in the future, as a result, they’re selling their current property. If you learn more about the seller then you can use that as your definite advantage.
Remove Emotion During Negotiation
Keep in mind that if you miss out this property, there will always be similar properties that can fit your buying standard. It is important to remain cool, calm, and polite during negotiations and try to take emotion out of the equation. Although buying a property seems to be stressful but it is essential to remain friendly and collected at all times by doing this you will have a greater chance of getting your offer accepted.
Include Special Conditions
Both sellers and buyers don’t want to have stressful transactions, as much as possible sellers usually go for buyers that don’t give them too much hassle. One way to establish favourable negotiation is come up with special conditions. For example, if the seller prefers a quick settlement, you can coordinate with their real estate agent saying that you are willing to reduce the payment time frame. Also, you can provide them home loan pre-approval and that you’re willing to pay a larger deposit. In this case, your bargaining power will increase.
Stick To Your Budget
Your budget can make or break any deal, it is important that you should stick to your budget and do not overspend. Make sure you will stay to that limit despite all pressures you might encounter. Whether its a competition from other buyers or fear of missing out your dream house, the objective is to purchase a property within your means. If negotiations let the price of the house unreachable then walk away. On the other hand, avoid offering an amount lower than the asking price. It might insult the vendor and most likely will not consider any offers you make.
Negotiation Tips
Set a clear goal - Before you start negotiating, identify and set your goals. Present clearly what do you want to achieve at the end of the negotiation process such the terms of payments, contractual terms, and budget.
Know seller’s motivation - Understanding vendor’s motivation can help you properly decide on the negotiation process.
Do not fall into the trap - If you think the negotiation is not going your way, it is okay to walkway and cut your losses. There are similar property out there that can meet your buying criteria.
Always remain calm and polite - Although negotiating for your dream property can be stressful, it is essential to remove emotion from the process. Always remain calm and polite and you will end up getting your offer.
It's not about free white goods - Sellers often use free white goods to sugarcoat the deal but buyers should stick to their offer and not get swayed by this strategy.
Listen carefully - Listen and communicate properly during negotiation. Once the seller and buyer understand each other, it’s much easier to come up with good agreement that benefits both of you.
Let us know and leave a comment if you get a good deal on your home. Good luck!