On February 5, 2021 / Selling Land
Selling Land Using an Agent
Do you have vacant land that you’d like to sell? Are you considering selling it yourself? Or maybe you’ve tried to sell a piece of property, and it’s been sitting on the market for months with little interest and no offers.
The reality is that selling property is a bit more complicated than just throwing up a “for sale” sign and waiting to cash the check. If you don’t know what you are doing, then not only will you still hold title to your land, but you will have wasted a ton of time and energy in the process.
This article will explain the benefits of working with a real estate agent and list the reasons you might want to go it alone. Let’s get started.
The Benefits of Selling Land Using a Real Estate Agent
A real estate agent is a professional who accompanies you throughout the transaction process, whether buying or selling homes or land. Their job is to highlight your property’s unique features, recommend an agreeable selling price, find the right buyers, and handle all the necessary paperwork.
Let’s take a quick look at each of these topics.
- What your land has to offer – Most every piece of property listed for sale has a feature that sets it apart from other properties. A real estate agent’s job is to find this detail and use it as a focal point when listing your property.
- Selling at the best price – Real estate agents follow local trends in the market and know what current real estate markets can handle. Realtors should know their local market inside and out. This means they’ll know exactly how to price your property based on how motivated you are to sell.
- Finding the right buyers – Selling vacant land is more complicated than selling traditional properties with houses because the house is the primary focal point to potential buyers. Agents won’t waste your time with buyers looking for a new home unless they want new construction.
- Closing the sale – Once you’ve signed with a real estate agent, they have a fiduciary responsibility to remain in step with you until it’s time to sign the paperwork at closing. They’ll have all the paperwork in order and take the stress and hassle away so you can focus on other things.
Working with a real estate agent is a good idea if you’re looking to save time and energy when selling your property. They do the hard work for you. It’s what they are paid to do, and that brings us to our next section.
The Cons Of Selling Land Using A Real Estate Agent
Although the benefits of working with a real estate agent are clear, there may be a few circumstances when a seller may choose not to hire a real estate professional. Let’s take a look at these instances in this next section.
Paying a commission to a real estate agent – Perhaps the most significant issue when signing a contract with a real estate agent is determining the commission rate. Dependent on where you live, it’s not uncommon to see commission rates between 4% and 7% of the final selling price. For lower value, land sales commission can often be as high as 10% or more.
However, these rates are usually negotiable, so don’t hesitate to meet with several different agents to find the rate that works best for you.
Committing to a contract – When agreeing to work with an agent, you are signing a contract that defines your contract’s exact agreement. You’ll be contractually obligated to work with the agent for a fixed amount of time and agree to pay the agent a fixed commission.
If you fail to live up to your contractual obligations, an agent can sue you, resulting in substantial financial penalties. Our best advice is to make sure you clearly understand the contract before signing anything. Don’t be afraid to ask questions.
Land Selling Companies
Now that you know the pros and cons of hiring a real estate agent to help you sell your land, you can make a more informed decision. Don’t be afraid to interview multiple real estate agents, and make sure you sign with a reputable company that specializes in selling land.