Inheriting vacant land can be both a blessing and a burden. While real estate is often seen as a valuable asset, raw land comes with unique considerations that differ from inheriting a house or a business. If you’ve recently come into ownership of vacant land, here are the key steps to take so you can make the most of your inheritance.
1. Confirm Legal Ownership
The first step is ensuring the property is legally transferred into your name. This may involve probate, updating the deed, and paying any inheritance or property taxes. Without clear title in your name, selling or developing the land will be difficult.
2. Research Property Details
Get to know what you actually own. Look up the parcel on the county assessor’s website to find details like:
- Size and boundaries
- Zoning and permitted uses
- Access (road frontage or easements)
- Utilities (water, power, septic availability)
Understanding these details will help you evaluate your options.
3. Check for Liabilities
Vacant land can come with back taxes, liens, or environmental issues. Contact the county tax office to see if anything is owed. If the property has been unused for years, make sure there are no encroachments, illegal dumping, or other problems that could create future costs.
4. Decide on Your Goals
Ask yourself: do you want to keep, sell, or develop the land?
- Keep it: You may hold for future appreciation or personal use.
- Sell it: If you don’t see value in holding, selling could turn it into cash.
- Develop it: If zoning allows, you may build, subdivide, or lease it for income.
Your decision will guide your next steps.
5. Explore Selling Options
If you decide to sell, you have several choices:
- List with a real estate agent who specializes in land.
- Sell directly to investors who buy land for cash.
- Market it yourself on land listing platforms like LandWatch, Zillow, or Facebook groups.
Selling to an investor may be faster but at a discount, while retail buyers often pay more but take longer.
6. Understand the Tax Implications
Inheriting land can come with capital gains considerations when you sell. Fortunately, inherited property typically gets a “step-up in basis,” meaning the taxable gain is based on the property’s value at the time of inheritance—not the original purchase price. A tax professional can help you minimize surprises.
Final Thoughts
Inheriting vacant land doesn’t have to be overwhelming. By clarifying ownership, researching the property, and deciding on your long-term goals, you can turn your inheritance into either a valuable investment or a cash-generating opportunity. Whether you keep it or sell it, making an informed decision ensures the land doesn’t become a burden—but a benefit.
