Many people looking to buy Palm Jumeirah (or any other real estate investment) in Dubai wonder “How to negotiate price on off plan properties?” While property is a very popular investment, especially in Dubai, purchasing an off-plan property is not as popular. Off plan property is any real estate not attached to a master plan. Some examples include commercial properties, townhouses, and others. There are many reasons for this. One off plan properties do not have any type of scheduled maintenance or zoning fees associated with them.
When a buyer purchases an off-plan property they normally pay a reduced market value because of these factors. Because there is no legal binding contract that guarantees the market value, it is extremely important to ask how to negotiate price on the plan? Off plan property can be purchased for a bargain when compared to the current market value. When you purchase an off-plan property, known as an off-plan lessee, you will not own the property for your lifetime but instead will be leasing the property from the owner.
Property for sale in Dubai, or simply off-plan property is property that is offered for lease under the provisions of a master plan. The term ‘master plan’ refers to a comprehensive plan that includes several specific plans within it. For example, one master plan might include a vacation club property, another might include a business property and still others might include a residential property. Each of these individual master plans would have a set date when the property is to be free and clear for occupancy. At the end of the designated period of time the lessee of the non-plan property can then sell or rent the property to the highest-paying buyer.
It is very important to understand the legal terms of the master plan in order to know how to negotiate the price on the plan. Non-plan properties are often referred to as ‘development land’ or ‘development sites’. There are many legal terms that can be used to refer to them and understanding them can help clarify and simplify any discussions with the buyer. Most master plans set out the maximum price for which the property can be sold. This price is often set for a minimum of five years; however, it is possible for the price to be set longer than this in some cases.
When a buyer approaches a property owner about purchasing an off-plan property through top real estate companies in Dubai, they will usually offer to buy the property below the price that is set out in the master plan. The owner, or the ‘lessee’, is under no obligation to sell the property at this price unless it is legally voidable. Some buyers will insist on holding all the legal papers so that they can make an offer if the seller does not enter into a binding agreement with them. If this happens, the buyer could ask the owner to sign a master agreement providing for them to buy the home at the prevailing market price.
Learning how to negotiate price on the master plan is essential because the original plan was established to provide for the long term benefit of the community. Therefore, it may seem that the price is set at a point where it makes little or no sense to go for a sail. However, a sale of a non-plan property is usually more beneficial to the surrounding neighborhood than a sale of a master-plan property. There are usually additional benefits attached to the sale of these properties, such as increased tax credits, improvements to roads and other amenities.
Sometimes a master plan will include a clause that states that the property is in a planned community and requires the buyer to live in it and pay certain costs for the upkeep of the property. While these master plans do offer some extra incentives to buyers who are willing to pay for this additional coverage, they often come at an additional cost. These extra costs can include property taxes, insurance premiums, and additional remodeling costs. If the property does not already have these costs, the buyer could pay them when they purchase the property. This is why it is important to shop around when looking for a property that meets the criteria of a planned community.
One of the easiest ways to learn how to negotiate a price on the master plan? It is simply a matter of understanding what the master plan is and knowing what it means to the entire community. Once you have this information, you can use it to your advantage to lower the asking price, or to increase the amount that you are willing to offer based on other factors such as floor space, number of bedrooms and bathrooms and the amenities that are included in the price. Understanding how the master plan works and its value is important in all situations. Whether you are the buyer or the seller, you need to know how to negotiate the price so that you get the best deal of sale or property for rent in Dubai.