In the last two-three years, Dubai has become the hub for business, travel, and tourism for people worldwide. The real estate market, too, is growing steadily. According to the Khaleej Times, the average price of an apartment has increased by 17.2% and a villa by 15.1%. As Dubai continues attracting more foreigners, the costs will keep increasing.
Therefore, homebuyers need to negotiate to the fullest of their capacity in order to get the best deal. But negotiation is not everyone’s cup of tea, and most buyers take a backseat. In this article, you will find some unique suggestions to help you nail it.
Key Steps To Negotiating the Best Price for Your Home
When it comes to understanding effective property negotiation, it can mean a difference between overpaying on a property and saving thousands of dirhams. Whether purchasing an investment property or a home, the strategies below will help you save tens of thousands of dirhams.
According to Saj Hussain, a real estate agent for fifteen years believes that major decisions we make are based on emotions and justify them with logic. In the context of property, it is very easy to fall in love with the property that buyers go to see. The beauty and magnificence of a property may cloud a buyer’s judgement.
You need to separate emotions from logic to get the best possible price for your home. A great example of this is when you go to auctions where people are bidding for a property. They get carried away with the emotion of the moment and end up overpaying for it. Thus, to prevent yourself from such regrets, always know your budget and upper limit before entering a negotiation.
Collect Data Ahead of Time
Many times people miss this crucial step. They directly go into the negotiation without having enough information and data about the market. As they say, knowledge is power. Buyers can extract information sitting in their homes before they go into a negotiation. You need to know how long has the property been in the market, when it was listed, and if there was a change of agent.
A background search into the property could reveal if it was sold previously and has become available once again. You could find out what the previous buyer paid for it and why it is back in the market so soon. Furthermore, you can look for similar properties in the area, their prices, and what kind of property will suit you the best.
Understanding Your Competitor
In this case, competitor refers to the people who will be negotiating with. It can be an agent from the seller side, the seller directly, a trustee, an agent representing the seller, repossessions, or corporate sales. For instance, if you are dealing with an estate agent and they are coming around to show you the property. But it turns out to be a party guy speaking in a casual tone.
You know that they have very little to do with the transaction process and are perhaps there for his pocket money. When you try to understand who you are dealing with and what their roles are within this transaction, you can have the upper hand. So try to know who are key decision-makers are before jumping into a negotiation.
Build a Rapport With the Negotiator
Continuing with the previous step, once you know who the person you will be negotiating with, it is important to build a good rapport with them. According to Saj, people like people who are similar to them. While this is probably a psychology hack, it will surely come in handy while getting the best price for your dream home.
For instance, there may have been a time in your life when you have met somebody and did not like them in the first meeting. Thereon, it becomes an uphill struggle in terms of working with them or connecting easily. Thus, you need to overcome that resistance quickly by building a good connection with your negotiator so that the business later on is smooth.
The quicker and better you build a connection with the seller or the negotiator, the better your journey will become. You can understand their key motivations and intentions behind the negotiation. We believe sellers are always looking for maximum money for their property, but that’s not always the case.
Get the Owner’s Attention
The way to get in front of the owner is tricky as real estate market agents don’t want you to meet the owner. So one way to work this around is to fix a viewing out of normal working hours, like in the evening or a Saturday afternoon. Agents generally don’t want to work during such time, so you can insist that it is the only time you are available for the property viewing.
In such cases, the owners may come to show you the property around, and you get a chance to speak to them directly. The point to be noted is buyers must not do this to avoid the agents but to get information about the property from the owners and start the negotiation from there.
Giving the Right First Impression
When going to meet the owner for the first time, if you turn up in your supercar outside with a Rolex watch hanging on your wrist, you will intimidate your seller. That is probably the last thing you should be doing if you are genuinely interested in buying the property. Since you are there to build a rapport, choose a casual style of clothing and appear humble.
The Bottom Line
When you are on your house-hunting journey, negotiating with seasoned agents may be exhausting. The steps above will set you up to start the negotiation process. However, to get the best value for your money, you can get agents from Top Luxury Property to assist you. You can look up various properties in Dubai, from luxurious villas in JVC to townhouses downtown.