Sometimes you might want to directly buy the piece of land you have identified been saving for without involving a real estate agent.
Most people tend to consider hiring a real estate agent on their to-do list whenever they want to purchase a piece of land.
Is it advisable to do that? “I strongly advise investors to purchase a property through a real estate agent so that they enjoy full benefits that agents can offer to investors,” says Reuben Kimani, CEO for Username Investment Limited.
If you are an investor, you can purchase by yourself without seeking the help of any Agent. Just like how you have can buy a new car, new clothing or washing machine in a supermarket.
However, unlike other transactions buying land can be a bit complicated in its process. If you are a novice investor in the real estate business, you might have rough experience during the process.
If you have enough time and little experience in land transactions, then doing alone can be a good i
Advantage and disadvantages of buying with a seller
Saving money when buying a piece of land is the aim of every buyer. But is saving the only thing that you will benefit from buying by yourself? Definitely not. Having full control and less pressure over the entire process is something everyone will love to have and that is what you get when you do with a land agent.
The downside of doing it by yourself is that you will take a lot of time searching for the piece of land from the listed properties in the area you are interested in. You will spend some time as well doing comparable research when seeking to establish the true and fair price for the property.
In addition, you will lack professional guidance from experienced real agents who better understand the process of purchasing the land. It will be a great disadvantage if your competing buyer for the same piece of land has hired a real estate agent.
Should you decide to go ahead without a Real estate agent
If for whatever reason, you decide to go ahead without having a real estate agent, then the following tips will be helpful for you:
1. Hire a lawyer
He/ She will go through the contract you are planning to enter with the seller and advise you accordingly especially when signing the closing papers
2. Hire a surveyor
He/ she will help you in ascertaining the exact measurements for the piece of land, title search, local zoning, and check if the land falls under protected pieces of land in your area.
3. Get your Finances in order
One thing that you must get in order is your finances. If you want to win any contract in the market, you need to have the agreed amount ready otherwise other potential buyers will make the offer and commit down payment.
If you are going to use a loan to pay, you need to get approved before you reach out to the land seller.
4. Do your research
You will be entirely responsible for doing research especially with regards to the price of the land.
Comparable analysis to establish a fair value of the land your want to buy is important as this will guide you when you are negotiating with the land seller.
5. Have contingencies plan in the deal
A contingency plan in your offer will protect you from unforeseen circumstances after closing the deal.
For instance, if want to build a warehouse in your newly purchased land and local regulation only permits farming, it will be good if you will have a contingency that says that if the local zoning authority does not approve your intended purpose, you can back out of the deal.
So which way to go?
Everything boils down to you. And you have to decide by yourself deepening on the circumstance you are in. If you are an experienced real estate investor and have enough time, then you can go ahead and do the transactions by yourself. If it is your first time, then considering a seasoned real estate agent to guide you in the super-competitive environment will be a good idea for you. This will save you time and energy.