Many people inherit land they don’t need or have no use for. Some choose to leave it in their portfolio of investments, while others opt to liquidate the asset into cash and sell the land to a buyer who can put it to good use.
If you are opting to sell your inherited land, it pays to learn about the entire process to ensure that you close the sale smoothly, without feeling overwhelmed and overworked. We lay down everything you need to know when selling inherited land.
In some States, inheritances are subject to estate tax and inheritance tax, the amounts of which depend on the value of the property. As of 2021, however, assets that are less than eleven million and seven hundred thousand dollars ($11,700,000) are exempted from estate tax.
If the land you inherited is worth more than the threshold, there may be taxes that you have to settle before you are able to sell your property. These include:
- Estate taxes: Assessed from the fair market value of the estate
- Inheritance taxes: Some states tax inherited assets, assessed from the value of the inheritance, your relationship to the deceased, and state rules and regulations.
You can also learn about how capital gains tax works when selling land here.
Even if the property has been bequeathed to you in the will, the transfer of title cannot be made until the will has passed through probate. Probate is a court proceeding that verifies the will and enforces the distribution of assets. This is overseen by the court and administered by the executor appointed in the will.
The executor will take charge of paying taxes, settling the debts of the deceased, and distributing the assets to the named beneficiaries. Only when the will has been enforced through probate can you begin your efforts to sell the land.
Some inheritances do not need to go through probate, such as if the deceased put the land in a revocable trust. In these types of estate plans, the assets in the revocable trust are automatically transferred to the beneficiaries.
Ask Permission for Co-Owned Land
If you share the inheritance with other members of your family or other beneficiaries, you will need their permission before you can sell and the proceeds will be divided among the co-owners. However, if there is disagreement among the co-owners, they can go to court and ask the judge to order a sale and divide the land.
Determine the Value of the Land
When everything is settled, you can now begin the process of selling your inherited land. The first step is to get the land’s market value, which you can do by engaging a land appraiser. However, it’s worth noting that appraisals are not mandatory in most cases. You only need a formal appraisal if your land is involved in a trust, will, or divorce that requires an appraisal to sell.
If not, you can get the estimated selling price of your land by asking your real estate broker to conduct a Broker Price Opinion (BPO) or Comparative Market Analysis (CMA). Doing this can give you a better idea of how to price your land to get a good return.
Reach Out to Adjacent Landowners
Once you’ve set a price, you can begin reaching out to people who might be interested in purchasing your vacant land. It’s a good idea to reach out to the owners of adjacent land first to see if they are interested. Selling to these interested buyers can make the process easier and quicker.
Get Word Out About the Land for Sale
If none of the adjacent landowners are interested in making a purchase, don’t worry, you can still reach out to more potential buyers. Put up a “for sale” sign on your property, engage a real estate agent, and post a listing on land-selling websites. These can help expand your reach and find more interested buyers.
Consider Selling to Real Estate Investors
Selling land is much more difficult compared to selling a home. An easier route is to consider selling to real estate investors instead. These types of buyers are not looking to build their homes in your parcel of land, which means there are fewer considerations and particulars involved in their decision to make a purchase.
Sell Your Inherited Land to Slate Land Buyers
We are real estate investors who buy empty land directly from buyers. If you have inherited a parcel of land and you want to liquidate it fast, your best option is to work with us. We don’t charge hidden fees or commissions, buying your land directly from you without engaging middlemen. The process is as easy as 1-2-3. Just tell us about your land and we can give you a fair all-cash offer within 72 hours! Get started by filling up a quick form.