Should you buy a property directly from the owner in Abu Dhabi
Buying a property direct from the owner in Abu Dhabi, is this a possibility? The short answer to this query and other similar questions is yes, it is. What are the benefits of taking this approach and the challenges you may face, we discuss all the different factors that may influence your decision of buying property in Abu Dhabi without a broker.
SHOULD YOU BE BUYING A PROPERTY DIRECT FROM THE OWNER IN ABU DHABI?
Like with most choices one makes, there are two sides to this decision as well. There are some positives that we will discuss and also shed light on why generally people tend to avoid buying property in Abu Dhabi without a broker.
PROS OF BUYING PROPERTY IN ABU DHABI WITHOUT A BROKER
Here is why opting to purchase a property without a real estate agency working for you might be a good idea.
This would be the obvious reason why one may prefer buying a property direct from the owner in Abu Dhabi. Besides, the obvious cost of the property, there are some additional expenses like pay title deed registration and mortgage fees. Plus, usually real estate agents charge 2% as commission. Plus, on the commission amount, you may also have to pay 5% VAT charges. It all adds up.
So, by not taking on the services of an agent, you are likely to bring down the overall cost of property.
NEGOTIATIONS WITH THE SELLER
Are you confident in your own abilities as a negotiator? Then you might be able to negotiate a better price or improved terms for yourself when dealing directly with the owner. You can ask questions about the condition of the property and living in that community from someone who probably has experienced it. If you look at the buy property directly from the owner procedure, it is quite complicated. But if you can manage that process, it allows you to make your own bidding.
Buying a property direct from the owner in Abu Dhabi, especially if it is an off-plan property, might be a good idea. You may be able to benefit from the favourable payment plan from the developer and go through the buying process with the help of their staff. In doing so, avoiding the commission.
The reason many people take on the services of a real estate agent is because they feel it is a daunting task to do so on your own. It requires a lot of work to get the right deal done. However, this also means that anyone investing that amount of time and effort will not leave any stone unturned.
With an agent you might have to make a compromise as you are dependent on his or her portfolio. However, when searching for a property on your own, you will have more options. If you plan your search well, there will be plenty of time not to compromise on an average property, rather look for the one that fits your requirements perfectly.
CONS OF BUYING A PROPERTY DIRECT FROM THE OWNER IN ABU DHABI
Here is a look at the challenges you may face when buying a property in Abu Dhabi directly from the owner.
UNDERSTANDING THE MARKET
It is unlikely that any amount of research in a short period will make up for the lack of understanding of the property market. Real estate agents working in Abu Dhabi will have specialised knowledge of the capital’s industry. The understanding of sales trends, the infrastructure in the area, and perhaps a connection with someone who has already lived in the property. Hence, a real estate agent might be able to help you in identifying the right property.
BUY PROPERTY DIRECTLY FROM OWNER PROCEDURE
The difficulty of fully implementing and adhering to all the laws and regulations is a major reason why people opt for a real estate agent’s services. There are various aspects to deal with, including sales agreements, title deeds and mortgage documentation that require expertise which most people don’t have. At times, there are rules enforced by the property developer or management, which the agent can inform you about based on his or her previous dealings.
A mistake, even a minor one, can either end the entire deal or you may end up paying for it at a later date. An error may mean you end up paying more than you have saved by not paying the realtor.
Hence, most people decide against buying a property direct from the owner in Abu Dhabi.
FAQS ABOUT BUYING PROPERTY DIRECTLY FROM THE OWNER
WHICH ARE THE MOST COMMON HOME-BUYING MISTAKES?
Here is a list of the most common home-buying mistakes that you need to try and avoid.
WHAT ARE SOME OF THE THINGS TO CONSIDER WHEN BUYING A HOME?
SHOULD YOU BUY A PROPERTY ON CASH OR MORTGAGE?
Wondering if you should pay up cash or opt for a mortgage when buying a property? Read our insightful discussion on cash vs mortgage when buying a property to get a better understanding of your options.
Buying a property direct from the owner in Abu Dhabi certainly has its advantages. But there are obstacles that you have to overcome to gain a favourable end result. It really depends on your personal commitment, the amount of time you can spend on getting the deal done and if you feel you will be able to complete the documentation process without assistance.
Now, that you have read the pros of buying a property directly from the owner as well as cons of buying a property directly from the owner, you can make an informed decision.
For further information, you can read our buyer’s guide to investing in the Abu Dhabi property market. Alternatively, you can also learn about buying a property in Dubai directly from the owner.