Pros & Cons of Buying Property Directly from Owner in Dubai

Dubai is undoubtedly one of the most cherished places to live, being on the wish list of millions of people globally to settle down in. Apart from being an economic hub that provides a plethora of employment opportunities and business avenues in innumerable fields from natural resources to fashion, this Emirate is also the epitome of luxury and wealth.

Not to mention, the architecture galore that this city boasts of can give any other city in the world a run for its money. The stunning landscape, authentic culture, and easy accessibility to modern amenities make this city a perfect blend of traditional and futuristic elements.

This is why the real estate market of Dubai is always booming with properties in the city that are being vied for by people in and out of the city. However, the question remains how you can benefit the most from the buying opportunities? Should you be buying a property directly from the owner in Dubai? That is what we are going to dive into in this space.

The Pros of Buying a Property Directly from an Owner in Dubai

When it comes to buying properties of high Return on Investment (ROI) value in Dubai, as a buyer, you have two options in front of you. You can either resort to authorized real estate agencies or rely directly upon the property developers or owners. If you plan to do the latter, then here are some of the most prominent advantages you can subject yourself to.

Remarkable Monetary Savings

It shouldn’t come as a surprise that the primary aspect that buyers consider while making any long-term investment is financial considerations. The biggest pro of buying a property directly from an owner in Dubai is that you save a huge chunk of money that otherwise is spent on real estate agents or agencies who assist you in finding the apt property.

If you purely consider it from a numbers perspective, then you will note that you have to pay 4% of the total value of the property as mandatory DLD (Dubai Land Department) fees. The overall charges that you have to pay will also include the cost of issuing the title deed and the DLD admin fee. 

Not to mention, for those individuals who want to go the route of mortgage instead of a complete down payment, they have to pay 0.25% of the complete value of the mortgage along with an additional admin fee.

These costs may seem pretty high at a glance but they increase when you rely on an agent or agency since they can charge around 2% of the fee apart from everything we mentioned above. There are reputed agencies that even charge an additional 5% VAT fee. Needless to say, the more avenues you find to save money, you should opt for it.

Elimination of Middlemen

As much as middlemen can be of assistance while buying a property in Dubai, they can also be a nuisance to deal with. Among the various factors you need to cater to while making such a long-term lifelong investment, the last thing you need is another hassle to deal with in the form of a middleman.

When you decide to buy the property directly from the owner in Dubai, you open yourself up to a more hands-on approach wherein you will not have to cross various obstacles to meet your dream property. This will make the process quick as there will be fewer barriers between you, as a buyer, and the owner, as the seller. 

With reputed and renowned developers in Dubai now allowing potential buyers to directly look into the available properties virtually online, the buying procedure and transaction process have become simpler. As such, it gives more confidence to buyers who don’t want to deal with middlemen.

Direct Communication with the Seller

Negotiation is one of the key skills that you can benefit from while making lifelong investments. Directly buying properties from the owner allows you to hone your skills and practice your expertise if you know how to negotiate well. 

As there is a direct line of communication between the buyer and seller, you will have better clarity on the history, present condition, and potential issues related to the property. Transparent communication will allow you to make a more well-informed decision. 

You will also be in a position where you customize the deal in a way that suits both you and the seller in the absence of an agent. This opens up more dialogue for negotiation since there are no agent fees to deal with. Options for owner financing also open up that are otherwise not available when you constantly have to feed the needs of a real estate agent.

The Cons of Buying a Property Directly from an Owner in Dubai

There is a reason, in fact, quite a few, why real estate agents are so popular in Dubai. Purchasing properties directly from an owner in Dubai is not a walk in the park, which is why real estate agents, brokers, and agencies are at your service. Here are some of the most prominent cons of buying a property directly from an owner in Dubai.

Minimal Knowledge of the Property Market

The real estate market of a city of such a high caliber like Dubai is extremely competitive and keeping up with the mechanisms and work culture can be extremely difficult as a layman. Unless you are thoroughly well-versed with the property, neighborhood, and market factors that govern the prices in Dubai, you open yourself to various financial risks when buying directly from an owner.

The knowledge of a trusted real estate agency can be of paramount importance in this regard as they will facilitate a seamless property viewing experience, which will give you a wholesome picture of the pros and cons of each property that you consider buying.

If evaluating properties is something that you haven’t experimented with in the past, it is not a wise decision to jump into it, especially with the large sum of money involved. You might not be aware of the delicate and complex intricacies of the buying processes that a real estate agent can help you with.

Lack of Expertise

Buying a property anywhere can be quite similar to treading in rough waters, let alone in a fierce market such as Dubai. For you to navigate the complexities of the transactional processes, you need to have years and years of expertise in handling properties, which in most cases, isn’t feasible unless you are from a real estate background.

With numerous paperwork, research, and background checks, you want to keep your job to the minimum and let the experts do what they do best. This is especially true when you are buying properties from an individual seller instead of a developer. 

More often than not, the contracts and minute details of the official paperwork and following the linear line of legalities can be more complicated than one anticipates. This can make the buying process filled with numerous obstacles, thereby slowing down the process. 

Lesser Avenues for Negotiation

Negotiation is an art that you either are a master at or something you can fumble at. There is no middle ground with this portion. For a successful negotiation to take place, you need to rely on the skills of a professional real estate agent who can get the job done with ease. They will assist you in securing the property at an appropriate price.

Since they are seasoned negotiators, they can perfectly navigate the different ways to handle different sellers. They know which route to take to sweeten the deal to make it feasible for you. Emotional attachments often can influence sellers to accept offers, and real estate agents know perfectly well how to approach them.

Skilled real estate agents can leverage their skills to help you find not only the best property in your budget but also secure the best deal once you zero in on your final choice. They will assist you every step of the way to ensure your money is worth it.

The Best Places to Buy Properties Directly from an Owner in Dubai

Dubai offers a myriad of options if you are considering buying a property directly from the owner, be it an individual seller or developer. Neighborhoods such as Jumeirah Village Triangle (JVT), Business Bay are some of the most viable options in this regard. 

From apartments to townhomes, from condominiums to bungalows, from farmhouses to villas, the range of variations you will find in the types of properties will leave you spoilt for options. With an eclectic variety of properties in different budgetary options, there is something for everyone’s taste and preference.

To Conclude

Buying properties in Dubai directly from an owner comes with its benefits and challenges. It completely depends on you as to which route you want to embark upon. If you want to save money and the hassle of dealing with a middleman by maintaining a direct line of communication with the seller, then opt for the direct purchase option.

However, if you feel you don’t have the industry expertise and have limited knowledge of the real estate market that will hinder you from making a well-informed decision, then opt for the services of a reputed and authorized real estate agent, agency, or broker, who will also assist you in securing better negotiation deals.

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