There are many ways in which you can directly or indirectly overpay for real estate which you wish to purchase.
5 Ways To Help You Avoid Overpaying For Real Estate Share on X
1) Comparable approach for price:
Most listing websites in Dubai have very little checks on the property value which agents or sellers define on their platform. The average sale price which is often included on these websites defined by areas is an average on their platform as opposed to the real transaction value.
The best tool which you can use to get a better idea of the “real” value of the transactions is data from the Dubai Land Department. On a daily basis the land department uploads the monetary value of the transactions which have been registered with them. Use this data to check or negotiate the price which is being offered by the seller or agent.
2) Comparable approach for credit:
Always check multiple lenders when taking out a mortgage or credit for your real estate, most people go straight to their bank without checking other lenders and invariable pay thousands more over the course of their mortgage.
3) Research :
Use Google to look at the performance of area or surrounding areas where your real estate is located, this often helps understand what is happening in the market, things which your broker or seller will not tell you.
4) Know the transaction price:
The following costs will also be part of your transaction apart from the listing price:
| Broker Fees | 2% of the transaction value |
| Transfer Fees | 4% of the transaction value |
| Misc (conveyance, NOC’s) | AED 10,000 (approx) |
These are just a basic overview of the costs involved, to get a detailed overview read our post: What you need to know as a first time Dubai real estate investor.
5) Define your range:
Once your research is complete and you have calculated the cost of credit and average transaction price in your area it is time for you to define your range or “fair price”. It is very easy to be tempted with offers which are beyond your range; this is when you need to ask yourself whether paying more than your fair price is worth it? It’s a call only you can make, but the answer just might be no.
–DURISE.COM
**This article only for reference purpose, the data shown may not applicable in Malaysia**
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