Buying a house is no less than a dream come true. After working tirelessly hard, saving for years, and cutting down a lot of lavish expenses to find a property you can own and finally fulfill the dream of living in your own home. The charm, mesmerizing experience and sense of fulfillment are real and unsurpassable.
You have certainly heard of real estate agents or realtors making their livings and making a fortune for themselves by just becoming an agent who deals in all types of properties. Their money-making process is sharp as they charge from both the sellers and homebuyers. And this is how real estate agents or realtors rip the seller and buyers from their hard-earned money for doing the tasks you can do on your own without involving them. So, this write-up will unfold and educate you with the right tips to follow and save money by not feeding the agents for their services that you can do on your own.
5 Tips to Buy Real Estate Properties without Real Estate Agents
Homebuyers confront a lot of challenges when trying to buy a real estate property without involving an agent who makes the deal for them. One reason for it is the unawareness of the right procedures and steps. However, there are tips and techniques you can follow to eliminate the need to go to agents.
1. Clearly Comprehend Your Buying Objective
Buyers must understand the purpose of their investment before making any purchases of properties in the UAE. The need to comprehend this is vital since it will enable them to choose the right property. This is where you will need to ask yourself if you’re an investor planning to earn from the capital invested or a homeowner who will finally fulfill the dream of living in their own house.
Clearing this will give you a proper understanding of your investment. Hence, it will allow you to decide what your investment framework is. Moreover, this will also answer several doubts that you are struggling with.
2. Creating Seller/Buyer Agreement
Many people hire a real estate agent to smooth the deal, hopefully. However, this is only possible by communicating with the seller, which inevitably led to long communication delays and lost message intent. Many trades are lost because real estate brokers of realtors need to recognize what clients are trying to achieve and communicate effectively between clients. For example, many deals are lost because agents need to communicate that some of the buyer’s or seller’s terms are flexible and not absolute.
On the other hand, if you decide to buy a home rather than partner with a realtor, dealing directly with the seller may help you build a better relationship and clearer communication. It also helps you close deals and gives you more flexibility. In contrast, if you have clearly decided to eliminate dealing with a real estate agent, the next thing is to consult with the legal advocates in Dubai, who will be responsible for smoothly making a deal for you while legally binding the deal for security.
3. Decide Between Freehold or Leasehold
Making an informed rather than a blunt decision is a sign of an intelligent person. You need to clear yourself on a determination of whether you invest in freehold or leasehold. Clearing this will give a clear idea of several things. Having said this, let’s find out more about freehold or leasehold properties;
- There was a time when foreigners could not buy property in Dubai. However, things started to change in 2000, and have been easier for non-nationals to purchase property in Dubai. For this, the Dubai government introduced new laws, and many areas received freehold status. This means that anyone in the world can buy properties in those areas.
- As the name suggests, a Leasehold area is an area in Dubai where one cannot purchase a property. In this area, one can only lease a property or land as per the instructions by the UAE government. By definition, when a lease property gets a period of more than ten years and up to 99 years, it is often well-thought-out as a rental property.
4. Make a Deal for Yourself
Not all realtors and brokers are trustworthy. It doesn’t matter if you rent on your own or work with a seller’s agent. In order to make a sale and earn a commission, realtors are encouraged to close deals (although this is not always in the buyer’s or seller’s interest). For example, if an agency includes another agency that they work with (to earn maximum commission) in a transaction, or represents both buyers and sellers, specific listings or I may be biased towards listing specific homes. However, this is only sometimes in the customer’s best interests.
But working alone gives you complete freedom to make your own decisions and get things done the way you want. Your choices and desires are the only things that compete without interfering with other people’s tastes. The priorities are entirely yours, with the advantage of automatically saving you thousands of commissions.
5. Understanding Different Fee Structures
When you aim to don’t involve a real estate agent in your home buying process, you have to carry out several processes yourself. One thing is to understand different fee structures, as this is what helps you clear the process yourself without having to face any legal obligation later. Now that you have decided to exclude the interference of a real estate agent, it is pivotal to be clear on the other two payments that you have to make for a clear and legally binding transaction;
- The first is Title Deed registration or transfer fee to the Dubai Land Department. Earlier, the registration of title deed transfer fee was somewhat around 2% of the total value of a property. However, the newly passed law issued in 2014 has changed the dynamics, and now the percentage is increased to 4%.
- The next in line is the registration trustee fee. This is a fee from one owner to another. The fee payment methods happen at the registration’s trustee office. If the property one buys less than AED 500,000, the fee of the registration trustee is AED 2000. However, if the value of your property exceeds AED 500,000, the trustee fee becomes AED 4000.
The Final Words
Buying a new home without a realtor or agent is a great process that is very doable. Given the savings, it is often the preferred method as well. While it makes sense to turn to “experts” for more complex transactions, most people can easily handle average transactions on their own. With a little research on the process and the various third-party providers required, you can buy your own home in no time. Chances are, like many others, you will fall in love with the process and find a career path. We are considering changing the way real estate works!