How to Sell Inherited Land

When you’re listed as the beneficiary on your parents’ or a family member’s estate, a few things probably go through your mind. You might be able to live in their home one day or use it as a rental property. Maybe they have a car or two you’re interested in selling. What you might forget about is the inherited property.

Especially when farmland is involved, inheriting a home means inheriting the property it sits on too. So when your loved one passes away, you become a homeowner and a landowner. The only problem is, you might not want to keep any of it. Suddenly you need to figure out how to sell land for the best price. 

There can be some unique tax rules and regulations when working with inherited land, so we created this guide to help you navigate the basic steps of selling an inherited property.

Know Your Situation

Inheriting real estate is different from inheriting assets. The first thing you need to do is gain a full understanding of your situation. 

Who Owns the Land?

Are you the sole beneficiary or do you share ownership with family members? Usually, the answer to this question is established either in the will or through the probate process, depending on the route required to settle the estate. Sometimes a piece of land will even be divided among a group of people, so you only own a portion of it.

What type of ownership you have will affect how you’re able to make decisions and what portion of the sale you get to keep. Oftentimes, when a property is owned by multiple people, they’re required by law to split the proceeds equally among themselves. If you’re the sole owner, however, you can decide on whether or not to sell, the sale price, and keep the entirety of the proceeds (minus the tax consequences). 

Assess What You Need to Sell

Unless you inherited vacant land, you’ll need to assess what structures that will sell with the property. Things like a home, a barn, a large garage, and even a utility shed can all affect the value of the property. Take the time to walk the property if you don’t already know it well and make a list of everything that needs to go—whether that means sold, torn down, or moved. This will help you when it comes time to appraise the property and determine your list price.

Identify Debts

Lastly, you need to determine if there are any outstanding debts associated with the property. Are the property taxes paid up to date? Are there any liens on the property? As the new owner, you’ll be responsible for these debts, so it’s important to know what loans are still tied to the property and what tax requirements are outstanding.

There are a couple of different ways to approach clearing these balances. You might choose to pay taxes and the mortgage with other inherited money, such as from retirement accounts or life insurance. Or you can use the money from the sale to clear out these debts at closing.

Contact Real Estate Professionals

Real Estate Agents

Selling inherited land on your own can be difficult and time-consuming. To save yourself a lot of hassle, find a real estate agent who’s experienced in both selling land and working with inherited properties. They’ll have a better understanding of the tax liabilities that can come with selling this type of property as well as how to navigate those issues in the sales process.

Your real estate agent can help you with the entire process from finding the value of the land to listing it for sale. They’ll come out to your property to get an idea of what you’re selling and a reasonable asking price, then help you take pictures and post a listing. Most real estate agents work through the traditional market, but that’s not your only option when selling land.

Real Estate Attorneys

If you have legal questions about estate taxes or inheritance taxes as they relate to the sale of your property, you might also need to find a real estate attorney or the person responsible for the estate planning of your property. They’ll have the best knowledge of how inheriting the property and planning to sell it might affect your bottom line. 

List for Online Auction

Auctioning inherited land, homes, or entire estates is often the best way to get the fair market value for your property. It’s also an opportunity to sell everything at once, instead of having to repeat the process with multiple buyers as you work through the assets you need to sell. Auctions can save you significant time, money, and energy that you’d otherwise have to dedicate to prepping your property and maintaining an online listing until you found the right buyer.

At Wiregrass Auction Group, we frequently help clients sell inherited estates (land and all). We have a team of experienced real estate professionals who can help you determine a reasonable purchase price and set up your auction. They’ll handle the entire process too.

First, our agent will come out to your home to inspect the property and collect some of the information you gathered at the beginning of the inheritance process. They’ll take pictures of your property and ask a few questions to understand what you hope to get out of the sale. Next, we’ll do research and speak with you to determine which type of auction best fits your situation and what is the best starting bid.

The benefit of listing land at auction is that you have a set auction date. You don’t have to wait around for months or even years hoping the right buyer will come around. At the end of the auction, you’ll have the winning bid to consider and can decide if you’d like to accept that offer. This can significantly streamline the selling process. 

We use online auctions for these types of sales, which means only committed buyers are participating in your auction. Every bidder has to agree to the terms of the auction before placing a bid, so there’s significantly less chance a sale will fall through. 

Let Us Be Your Partner

Wiregrass Auction Group has helped countless families sell their inherited land and homes. We can make the process quicker and easier for you so you can get back to your normal routine without having to worry about your loved one’s estate.
Call us today to see how we can help you sell your inherited land and everything on it.