Pros and Cons of Using a Realtor to Sell Your Land

Posted by Nadia Winget on August 11th, 2023

Realtors, or real estate companies in Sri Lanka, are licensed professionals who represents sellers and land buyers in Sri Lanka in real estate transactions. They are members of certain governing bodies related to the industry, and adhere to a strict code of ethics.

Here is an overview of what a realtor does:

• Buying and Selling Representation: They work with clients who want to buy or sell properties such as houses or land for sale. For buyers, they assist in finding suitable properties based on their preferences and budget. For sellers, they can help market the property, find potential buyers, and negotiate the best possible price.
• Market Expertise: They have in-depth knowledge of the local real estate market. They can provide valuable insights into current market conditions, price trends, and the best time to buy or sell a property.
• Pricing and Negotiation: One of the essential roles they perform is to help clients determine the right price for a property. They use their market expertise and comparative market analysis to set appropriate listing prices for sellers and to make reasonable offers for buyers. Additionally, they are skilled negotiators who advocate for their clients during the buying or selling process.
• Paperwork and Legalities: Real estate transactions involve a significant amount of paperwork, including contracts, disclosures, and various legal documents. Realtors handle these aspects, ensuring that all paperwork is accurate, complete, and compliant with relevant regulations.
• Property Marketing: When selling a property, they can create marketing strategies to attract potential buyers. This may include listing the property on various online platforms, hosting open houses, and utilizing their network of contacts. For example, if you are selling waterfront land, they will know how to use this feature to attract better investors and get you a good price for your property.
• Property Showings: They arrange property showings for potential buyers and provide them with detailed information about the property, neighbourhood, and any relevant details.
• Guidance and Support: Throughout the buying or selling process, they offer guidance and support to their clients. They answer questions, address concerns, and help their clients make informed decisions.
• Home Inspections and Repairs: They often help coordinate home inspections and address any repairs or issues that arise during the inspection process.
• Transaction Management: From the initial offer to the closing, realtors manage the entire transaction process, ensuring that deadlines are met and any potential issues are resolved.

The specific duties of a realtor may vary based on the local real estate laws and customs. Additionally, some may specialize in particular types of properties, such as residential, commercial, or luxury real estate. Overall, their primary goal is to facilitate successful real estate transactions and protect their clients' interests throughout the process.

What are the pros and cons of using a realtor to sell land?

Using a realtor to sell land can have both advantages and disadvantages. Here are some pros and cons to consider:

Pros:

• Market Expertise: They have a deep understanding of the local real estate market, including land sales. They can provide valuable insights into pricing, demand, and market trends, helping you set a competitive and realistic asking price.
• Exposure and Marketing: They have access to multiple listing services (MLS) and other marketing channels, which can significantly increase the visibility of your land listing. They know how to effectively market the property to attract potential buyers.
• Negotiation Skills: They are skilled negotiators who can represent your best interests during price negotiations. They can handle potential buyers and their agents professionally to ensure you get the best possible price for your land.
• Time and Effort: Selling land can be a complex and time-consuming process. Hiring a realtor allows you to offload much of the work involved in marketing the property, coordinating showings, and managing paperwork, giving you more time and peace of mind.
• Legal and Contractual Knowledge: Land sales often involve various legal documents and contracts. These professionals are experienced in handling these aspects, reducing the risk of errors and potential legal issues.

Cons:

• Costs and Commissions: They typically charge a commission, which is a percentage of the final sale price. This cost can eat into your profits, especially if you are selling a valuable piece of land. However, the value they bring to the process may outweigh this cost.
• Limited Control: When you work with a realtor, you give up some control over the sales process. You will need to rely on their judgement and expertise, which may not always align with your preferences.
• Finding the Right Realtor: Not everyone specializes in land sales, so finding the right one who understands the unique aspects of selling land may take some effort.
• Timing: The land market may fluctuate, and it might take some time to find the right buyer. If you have a pressing need to sell quickly, it could be a challenge.
• DIY Option: If you have experience in real estate or feel confident in your ability to market and negotiate, you might consider selling the land yourself (For Sale By Owner, or FSBO). However, this approach requires significant time, effort, and knowledge.

Ultimately, whether to use a realtor to sell land depends on your specific situation, expertise, and priorities. If you value the convenience, expertise, and support that a realtor can provide, their services could be beneficial. On the other hand, if you prefer to save on commissions and have control over the process, you may consider exploring the FSBO route.