Land Broker vs. Direct Seller in Lagos: Which Should You Choose?
Are you at a crossroad deciding between buying land from [...]
Are you at a crossroad deciding between buying land from brokers or going directly to the seller? We have got you covered. In this article, we will discuss the pros and cons of buying from a broker and direct sellers, explain what the two entail, and help you choose the right one for your investment partner.
There are a lot of scam activities going on in the real estate market, including the exorbitant fees charged by some brokers making it difficult for investors to buy property in Lagos, Nigeria.
People want to feel safe and at peace with their investment, but nobody is willing to share how this can be achieved. In this blog post, we will dive into the real truth about brokers and direct sellers in Lagos, and help you decide which one is right for you.
Who is a broker? A broker is a real estate professional who acts as an intermediary, connecting buyers and sellers of property. They help to facilitate land transactions, providing expertise in navigating the local real estate market, understanding property values, and acquiring property.
Their major key roles – Facilitating transactions – Assist clients in buying, selling, or leasing property. They connect buyers with suitable property options based on their needs and negotiate deals on their behalf. Negotiation & contract management – negotiate deals, prepare necessary documentation, and manage the closing process for land transactions. Market expertise -They possess in-depth knowledge of the Lagos land market, including property values, trends, and legal regulations.
Common types include: Agent, Developer, and Estate marketers.
In a nutshell, they act as a trusted advisor in the real estate market, helping clients navigate the real estate market with ease in order for them to achieve their investment goals.
Who is a direct seller? – It is an individual or company that sells land directly to another individual. They are the owners of land and have all the documents at their disposal. These direct sellers can be found in a community, family sales, through referrals, or from a company that owns the property.
A real estate company can be both a land broker and a direct land seller but a real estate agent cannot be both.
PROS AND CONS
Cost
Land brokers charge commission or service fees. They link you up with the owner of the land, in the hope of getting a share of the deal when it closes. This is only applicable for real estate agents.
Direct sellers do not have any hidden fees or costs. They sell at a reasonable price based on the worth of the land.
Experience
When it comes to hidden information, land brokers know all the nooks and crannies of every area, the documentation process, and what to avoid in the process. The land seller’s only language is price negotiation. They usually won’t tell you the state of the land or whether it is under dispute or not.
Risk of Scam
Oftentimes, the higher percentage of the land scams are from direct land sellers. Their interest is solely in what they intend to gain and never in the seller. You are prone to scams when you deal directly with the buyer, especially when you don’t understand how real estate investment works. Dealing with credible land brokers saves you from falling victim.
Negotiation power
A direct land seller gives you the power to exercise your negotiation prowess as there is still no certain price tag until you conclude with the seller. You have the power to ask for the price of the land in that area to understand how to negotiate when the time comes. Land brokers give no room for that as it has already been decided and hand it over to them for marketing. They only bring the business to you and have no power to change the price.
Time saving
If you are a busy person and don’t have an understanding of the real estate market, going through the land brokers saves you the time and assurance of your investment but if you understand the market, are willing to take risks, and all the paperwork, direct sellers might be your best bet.
Common pitfalls when buying land in Lagos
There are unspoken words in the real estate market that only the people in the business understand. It is a laid-down guide yet often neglected by the investors who are yet to understand the market. There are;
Title fraud – It is when a property document is altered to misinterpret ownership to sell or lease a property unlawfully.
Double ownership – This can occur when a property has already been sold to more than one person. It is common in the real estate market. Individuals bought lands without knowing it had been sold to another and the seller refused to refund the payment.
Fake survey plans – This is a fake document prepared and used in real estate transactions to deceive buyers into believing they are acquiring a legitimate property.
Omonile ( local land grabbers ) – They are land grabbers who use all manner of tactics to take people’s land. It can be through posing as the owner, violence, and intimidation.
Unregistered family representatives – These are individuals who claim to be related to the owner of the land in property transactions with one purpose- ‘ to collect money’ in an illegal way posing as the land seller representative.
How to verify a land seller or broker
With the recent law by the Lagos state government, identifying the land sellers or brokers is easier than before. The following are the guidelines to verify their authenticity;
Ask for these;
Title document ( C of O, Deed of Assignment) – When these documents or questions concerning the documents are mentioned, look out for their body language and how they respond. A legit broker or seller should be able to answer the type of title of the land. Understanding titles and their meaning is necessary for investors as it will save them lots of uncertainty.
Read this article;
Survey plan – This document shows where your land is located and the blocks/plot allocated to you. Verifying the survey plan is intricate in the real estate investment journey. Asking for the document is not enough. Take these measures to avoid falling victim to a fake survey plan;
- Engage a reputable surveyor
- Process a land information certificate
- Submit the physical copy
- Pay the verification fee
- Submit an application letter
- Check the survey plan record.
But these documents are no longer enough to prove a land seller/ broker is legit.
Check for them using their permit no in the Lagos state Land Registry or visit the Alausa registry Ikeja for verification.
Also, have property lawyers assist with the due diligence.
When you should use a broker
Real estate investment requires careful thought to avoid living with regrets. Thinking of using a broker for your investment and when you should consider it, below are the instances when you should consider using a broker;
- You are a diaspora buyer – As a Nigerian living outside the country, it is imperative to use one even when you understand the market. This is because you won’t be available for the documentation process but ensure you’re dealing with a credible broker.
- You don’t know the area – Understanding the locations and their surroundings is important for resale value. When looking to buy properties in areas you’re not familiar with, it is advisable to use a broker.
- You are buying from a developer/estate – A broker understands better what you’re looking for and who has that. Connecting you to your dream property is their sole business and will ensure you get what you’re looking for.
- You need help with documentation – Investing in real estate is more than just buying a property. The work that comes with documentation is a process on its own that requires proper handling and time. A broker will be of great help with the documentation process thereby saving you time for other business.
Tips to choose the right broker;
- Look for registration with LASRERA
- Ask for past client testimonials
- Don’t pay upfront without receipts.
When you can buy directly from a land seller
These days, buying directly from a land seller is a game of luck with so much uncertainty but it shouldn’t feel that way. Below are the green lights when to buy directly from a direct land seller;
- Family-owned land with trusted referrals – When the property is family-owned and you have gotten a good report about the family. It is not advisable to move forward with the transaction after it was ascertained that the said family is in dispute. Request the presence of the elders of the family before any transaction is made.
- Verified seller with complete document – Buying directly is possible when the seller’s identity has been confirmed to be the owner with the document complete and properly verified.
- You are working with a lawyer & surveyor – Once there is interest in a property, work with a certified Property Lawyer and professional surveyor for proper verification and documentation
Having a team of professionals will guide you and also ensure you avoid certain mistakes.
Conclusion
In real estate investment, two truths can co-exist. There is no one-size-fits-all. A land broker and direct land seller can be used depending on your availability, what you hope to achieve, and the purpose behind your investment goals. It boils down to the discussion properly treated in this article. A broker can be your strongest ally from the angle of your investment purpose while a direct seller can be the weapon needed for profit maximization. Always choose wisely and do your due diligence. The result is for you to conquer your investment game and also be at peace with your investment.
