If you are a first-time buyer, looking for a new house can be both fun and overwhelming. Buying a house in Dubai isn’t as easy as most people would hope. If you’ve ever purchased a car, you will remember that even that was a bit stressful… or maybe a LOT stressful. Buying a house is a much, much larger task. So here are some tips when it comes to buying a house in Dubai:
1. Approach Real Estate Companies in Dubai.
I know you may think this is a dumb tip. You may think you can do this on your own and you don’t need anyone else’s help. But here’s the thing; in Dubai, YOU DO NOT PAY THE AGENT’S COMMISSION! The seller, by law, pays the commission. Now, it is important to ask up front if there are any “additional fees.” Some real estate companies in Dubai will charge a transaction fee, but these fees really shouldn’t be more than a couple hundred dollars. I know you may want to pay nothing at all, but a couple hundred dollars to have someone that will deal with the paperwork, knows the Real Estate Market and Fair Market Values, can easily organize Home Inspections and Home Repairs, and has access to every listing in Dubai is in my humble opinion, very much worth it.
2. Calculate what you can afford.
Use a mortgage calculator to determine what you can actually afford. It seems to be a trend these days to attempt to purchase a house you really can’t pay for. This is a bad idea. You have time, you can land your dream home eventually. Be practical. Be smart. If you are working with an Agent, be honest about your finances, they can help you find something you both love and can afford. Also make sure to consider property taxes, insurance, and other fees involved with owning a home.
3. Compare properties.
This is another benefit of having a real estate agent. Agents have access to all listed homes and can look up similar homes that have recently sold in the area. You can then compare pricing and see if the home you are looking into is fairly priced. If you discover several 3 bed 2 bath homes in the neighborhood that sold between $220,000-$240,000 and the home you are investigating is listed at $320,000 you might want to reconsider or try to negotiate.
4. Be an informed buyer.
Do as much research as you can. Learn about the area you are looking to move into. Research the schools, the social scene, the market, and anything else you can. It’s not a bad idea to actually talk to people in the neighborhood. All information is good information (even if it’s “bad news”).
5. Look into a Real Estate Attorney.
I know you want to save money, but this is a huge transaction. You may want someone to draft documents to ensure your interests are being properly represented.
I hope you found some value out of this article. If you have any questions to ask please feel free to do so in the comment section.