Your inherited land can give you a substantial boost in income if you market them properly. Here’s what you should do when you’ve inherited land.
It takes around 65 days on average to sell a house, but it can take even longer to sell a piece of land.
If you recently inherited land from a loved one and don’t need it, you might be thinking about selling it to make some quick cash. You might not want to wait 65 days or longer, though.
If you’re in this position, continue reading to learn about your options for selling the inherited land you recently received.
Legal Issues to Do Before Selling Your Inherited Land
You will have three main things to do before you determine how to sell the land you received through an inheritance:
1. Make Sure the Deed Is in Your Name
When you receive land through an inheritance, it will not instantly transfer to you. The lawyer handling the estate must work through legal procedures to transfer the title from your loved one’s name to your name.
This transfer might be something your lawyer can do alone, or it might require going to probate to accomplish it. In either case, you cannot sell the land until you are the legal owner of the property.
You have to be the legal owner of the property before you can sell it.
2. Check the Title
The other legality in this task is checking the title to determine if the land has liens. A lien is a right someone has to the property. If there is a lien present, you may need to deal with it before you sell the land.
The lawyer handling the estate can assist you with this task. If the lawyer finds liens, he or she will help you understand your options. Once you have the land in your name and possession, you can choose a method for selling it.
3. Calculate the Costs for Keeping the Land
One more thing you should do is calculate the costs of keeping the land. Receiving land for free is a great thing, but it will require paying some expenses.
Consider the costs for the property taxes on the land. Property taxes can be expensive to pay, and you’ll have to pay them every year.
Owning land is not free. Property taxes and maintenance costs can add up.
It may also be helpful to think about the costs of maintaining the land. Will you have to mow it or perform other tasks? If so, add these up.
Options for Selling Inherited Land
You can sell land in a variety of ways, and you should consider all the options before picking one. Here are some methods you could consider:
1. Talk to Your Family Members
The first thing you might want to do is ask your family members if they wish to buy the land. You may have no emotional connection to the property, but your relatives might.
Someone in your family might want to buy the property from you. If this is the case, you could sell the land to this person for an agreed-upon price.
Selling to a family member is a great place to start, as some family members might want it. If this is the case, you won’t have to find a buyer for the property. Finding a buyer is often the most challenging part of selling land.
If you choose this option, you might not get the full value of the land through the sale. You may have to sell it for a discounted price, but at least you would have a buyer for the property.
2. Sell Your Inherited Land Yourself
If no one in your family wants it, you could put a “For sale by owner” sign in the front of the property. You could also advertise it on classified ad sites.
Selling a piece of property yourself is an effective way to make a more substantial profit on the deal.
There are downsides to selling land yourself, though. One downside is finding a buyer. It’s hard to advertise property for sale on your own, but without a buyer, you won’t be able to sell the land.
3. List the Land With a Real Estate Agent
The next method you could consider is hiring a real estate agent to sell the land for you. Real estate agents have effective marketing techniques and connections to buyers.
Selling through an agent is often easier than selling land yourself, but it is also more expensive.
You’ll have to pay a commission to the agent for the sale, which will cut into your profits.
There are a lot of other reasons you should never sell land through an agent, too. You may want to research this a little before choosing this route.
4. Sell It to a Real Estate Investor
The fourth method for selling land is selling it to a real estate investor or a ‘We Buy Land’ company. You can find investors in every city and town in this country, and they are always looking for more property to purchase.
A real estate investor is a person or business that buys land and properties to make money. They may buy homes to flip and sell for profits, but many also buy vacant land for development projects.
The benefit of this method is the speed of the sale.
After talking to an investor, you can get an offer, accept it, and close on it within a few days.
The second benefit is that you will not have to pay off the liens on the property before selling it to an investor. The investor will take the property as-is, which makes this method the easiest option to choose.
5. If You’ve Inherited a Large Farm or Timberland – Hire an Auction Service
For working farms or large tracts of timberland that are worth millions you’ll want to hire experts to help price and sell your property. We recommend Murray Wise Associates.
Learn More About Selling Your Inherited Land
Now that you know what to do when you get the land and the options for selling it, which direction do you want to go? Would you like the fastest option?