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Discussion Starter · #1 ·
When I see a property on Dubizzle that rents for, let's say, 100,000aed, what should I offer to actually pay? There must be some room for negotiation, but I can't tell how much. My company pays the rent in 2 checks, so I won't be able to get a discount by offering 1 check. Is 90k a reasonable bid? Would I be able to go lower?
 

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Go low ball straight away, there is no harm in it.

For example you offer 70k, they counter with 80k - It's a deal.

You offer 90k, they say YES - It's a deal.



So always low ball, you may be pleasantly surprised.

I can't see there being huge amounts of leniency, but that's just an example.
 

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Just a quick reply. If I had an apartment for 100k and someone offered 70, I wouldn't even forward it to the owner. 90k is more realistic. The amount of give in a price is also largely dictated by location and demand.
 

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Who's interest do the realtors have in mind? The renter pay the realtor fees, so I would think that the realtor would tell you what an apartment is worth. But i've been wrong before. :)
I'd say low ball though. Especially if the place has been vacant for awhile. I don't think i'd go 30% though. Thats just rude. I think 15 to 20 would be good. That way you don't offend anyone. Just be firm whatever you do.
 

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Who's interest do the realtors have in mind? The renter pay the realtor fees, so I would think that the realtor would tell you what an apartment is worth. But i've been wrong before. :)
I'd say low ball though. Especially if the place has been vacant for awhile. I don't think i'd go 30% though. Thats just rude. I think 15 to 20 would be good. That way you don't offend anyone. Just be firm whatever you do.
Also keep in mind that if you offer the asking price, the landlord may think he is underselling and will ask for more.
 

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Discussion Starter · #6 ·
Who's interest do the realtors have in mind? The renter pay the realtor fees, so I would think that the realtor would tell you what an apartment is worth. But i've been wrong before. :)
I'd say low ball though. Especially if the place has been vacant for awhile. I don't think i'd go 30% though. Thats just rude. I think 15 to 20 would be good. That way you don't offend anyone. Just be firm whatever you do.
The renter pays the realtor fees but the fee is often a percentage of the rent. So the realtor has an interest in keeping the rent high, no?
 

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The renter pays the realtor fees but the fee is often a percentage of the rent. So the realtor has an interest in keeping the rent high, no?
The Realtor would not be doing a good job for the landlord if the difference between asking rent and offered rent is 25% (100K to 75K). I mean why has he advertised the rent to be 100K with offers coming in at 75K?

You can generally negotiate on the asking rent by increasing the number of cheques or you can ask for a 5% to 10% discount with 1 cheque. The realtor can only present the options to the landlord who is generally clued up on the market.

Don't be surprised if the landlord asks for more than the advertised rent. That will happen if there is more than one party interested in renting out the property.
:)
 

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No not exactly. As I said before the more likely difference between advertised and achieved price is a lot closer to 5%, sometimes as much as 10%. The fee is 5% of the price, and the agent gets paid half of that amount.

eg 100,000 = Fee 5000 = Agent 2500

Now without the agents keeping the price high:confused2:;

95000 = fee 4750 = Agent 2375

Agent doing a terrible/great job (perspective)

90000 = Fee 4500 = Agent 2250.

I can guarantee that all the agents I know would sooner rent the property quickly and efficiently at 90 or 95, rather then alienate the tenant by trying to squeeze 5k extra out of the tenant for such a pittance of extra commission.
 

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The renter pays the realtor fees but the fee is often a percentage of the rent. So the realtor has an interest in keeping the rent high, no?
Logically, this would be right, but since the agent return is so small by holding out, he/she would rather move the unit and go on to the next property then deal with this long term.

No not exactly. As I said before the more likely difference between advertised and achieved price is a lot closer to 5%, sometimes as much as 10%. The fee is 5% of the price, and the agent gets paid half of that amount.

eg 100,000 = Fee 5000 = Agent 2500

Now without the agents keeping the price high:confused2:;

95000 = fee 4750 = Agent 2375

Agent doing a terrible/great job (perspective)

90000 = Fee 4500 = Agent 2250.

I can guarantee that all the agents I know would sooner rent the property quickly and efficiently at 90 or 95, rather then alienate the tenant by trying to squeeze 5k extra out of the tenant for such a pittance of extra commission.
+1. That would normally be the case, but as little as most agents work in the UAE, I can see them doing this. Especially since the landlord will give the unit to multiple agents and these agents create artificial demand. I have witnessed many landlords hold apartments with no tenants just to get that extra AED10k.

Most people here are not really business savvy, but like the others have said, I doubt a landlord will even entertain a low bid (30% below asking). Good Luck.
 

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I'd say go in at 30% less, most people are more worried about flying piranha attacks than they are about appearing to be rude in Dubai.
 

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Try to get an idea of what similar apts in the same building or area are going for.

If an apt quotes 100k, when other similar ones are asking 80, you can quote 80 or 75.

Otherwise i wouldnt offer anything less than 10% of the quoted rent.


some people here have this annoying habit of offering 2000 dhs for a car you post for 20000 or 100 dhs for a furniture offered for 3000 dhs, so we should try to avoid this sort of cheap bargaining
 

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some people here have this annoying habit of offering 2000 dhs for a car you post for 20000 or 100 dhs for a furniture offered for 3000 dhs, so we should try to avoid this sort of cheap bargaining
At the same time sellers have this extremely annoying habit of their first price being 50% - 200% more than what they are realistically willing to accept.
 

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When I see a property on Dubizzle that rents for, let's say, 100,000aed, what should I offer to actually pay? There must be some room for negotiation, but I can't tell how much. My company pays the rent in 2 checks, so I won't be able to get a discount by offering 1 check. Is 90k a reasonable bid? Would I be able to go lower?


i guess you have to go and offer like maybe 60 . im sure they will make it 2 notches higher and then make the deal when theyll took the bait. good luck .
 

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i guess you have to go and offer like maybe 60 . im sure they will make it 2 notches higher and then make the deal when theyll took the bait. good luck .
If you offered me this I would be totally disgusted, and not speak to you again. It would be a total waste of everyones time. If you have an agent worth even half there salt then they won't show you things you can't afford. I got annoyed on saturday as I showed some people round properties at 280-290, and at the end they said "our budget is only 250k" Why dodn't I ask them!?!?!? Waste of everyones time.
 

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Jimbo,
When you have a property that is overpriced. Say, 5%.
Do you tell the renter that they may be able to do better? Or do you let them make the call?
 

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I only advertise and show properties that I consider to be fair priced. Whats the point of me doing a proper job with people (seeing what they need, recommending areas, pro's and cons' of each development for them to then leave me, check dubizzle and rent one cheaper with someone else?
 

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We spent a few days with a relocation agent looking at apartments a few weeks ago and he suggested the best you could expect was Dhs 5,000 off seriously priced properties (and as indicated above, he told us he wouldn't waste his and our time by showing us overpriced properties). In this respect he also told us to avoid Dubizzle and that Propertyfinder was a better option for more realistically priced properties (I can't vouch for the accuracy of this - just passing on what he told us).

The other thing he said was you have a better chance of getting the owner to spend money replacing/upgrading appliances, kitchens and painting etc than getting a large discount off the asking rental.

The amount of negoiation can also depend on the nationality of the owner. Try to find out from the agent for example whether the owner is a local, or a former western expat who has returned to their home country. This may give you a better idea of their willingness to negotiate.
 

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We spent a few days with a relocation agent looking at apartments a few weeks ago and he suggested the best you could expect was Dhs 5,000 off seriously priced properties (and as indicated above, he told us he wouldn't waste his and our time by showing us overpriced properties). In this respect he also told us to avoid Dubizzle and that Propertyfinder was a better option for more realistically priced properties (I can't vouch for the accuracy of this - just passing on what he told us).

The other thing he said was you have a better chance of getting the owner to spend money replacing/upgrading appliances, kitchens and painting etc than getting a large discount off the asking rental.

The amount of negoiation can also depend on the nationality of the owner. Try to find out from the agent for example whether the owner is a local, or a former western expat who has returned to their home country. This may give you a better idea of their willingness to negotiate.

Propertyfinder is perhaps better depending on the type of property you are looking for, as they don't allow agents to spam with their individual listings, whereas dubizzle do allow individuals to post and therefor there are tons of duplicates and false listing on Dubizzle. But it is also better for the cheaper properties because less agencies will post these as it takes time nad hassle.
 
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