5 THINGS YOU CAN DO WITH INHERITED LAND
One of your relatives has passed away …and now you’ve inherited a piece of land. You’re likely wondering what do I do next? Well, the best course of action mostly depends on whether you’re going to be using it, or you’re just looking to cash out of it in the most efficient way possible.
No matter what the case may be, your options will boil down to the following resolutions:
1. Sell It Yourself
Prior to getting busy trying to find a buyer, make sure the deed is recorded properly and that all the paperwork is in order. You cannot claim the land as your own before the debts of the deceased have been settled (this period is known as the probate). TIP: You will need to locate the will, if any, and order a copy of the death certificate to file for probate.
Once the probate process is over, you’re still not entirely off the hook! The next step is to determine your property tax liability on the land. Be sure to keep paying your tax regularly (until the point of finding a buyer). Otherwise, the sale may not go through.
You’re also going to need to determine your tax basis in the property. In order to do that, you simply need to look at its fair market value on the date the previous owner passed away. The difference between this value and the final selling price will amount to what’s known as the capital gains.
When determining the optimal price for which you’re going to be selling it, try to go through the local listings and see what prices similar parcels of land usually go for. If you’d rather see some more accurate numbers, you can also hire an appraiser.
After that, it’s time to find a buyer! Do you know anyone who’s looking to buy? If not, you might want to consider looking through some classifieds and see if there’s anyone who’s looking to buy a piece of land in your local area. Either that, or...
2. List It with a Realtor
That way, instead of having to find a buyer all on your own, you’re going to be taking an approach that’s a bit more passive and let the potential buyers get sorted by your Agent.
But how do you choose the best Realtor to work with? Although you want to squeeze as much value as possible out of your lot, don’t simply pick the one who’s willing to list it for the highest price with the lowest commission.
The listing price should be comparable to the other listings and the realistic market value of your land. Simply put, if you try to list it for way more than it’s actually worth, you’re going to have a hard time finding a buyer. If the Realtor cannot show you some statistics and the details of previously made successful sales, be wary! Try to get a high-low and mid-range idea of pricing.
Also, be on the lookout for the following signs in finding a Realtor:
– Good reviews and customer feedback
– Transparent company and contact details
– Professional website
– Marketing budget
– Experience with land listings in particular
Try asking around to your friends to see if they can recommend someone. But above all, trust your gut feeling. Understandably, this is probably going to involve some work and will normally take some time to get it sold, but the upside is that it you are transferring the legwork to someone else, albeit for a fee.
3. Hold it
Holding onto land that used to belong to someone close to you can often have sentimental value attached to it. Of course, this does come with its own set of drawbacks, but for many people out there, trying to preserve a piece of their childhood doesn’t require too much thinking.
Another good reason to hold it is if you’re estimating the land’s value to go up in the future. In the end, you probably know your local area the best, and are likely to be familiar with all the trends you see going on around you.
Perhaps you’ve noticed the city is expanding in the direction your land is located in? As you’re probably well aware, urban land typically has a much higher value than the suburban land (or country land). But again, this is just one example, and other factors could influence its value as times goes on.
Finally, you may choose to hold onto it for the sake of future generations. Setting out to construct a new home is much easier if you already have some solid ground to build it on, and makes for a perfect gift. This, however, is not the only benefit; as it turns out, in most of the cases, a piece of land tends to hold its value quite well over a long period of time, and some people argue that its worth doesn’t fluctuate nearly as much as that of the typical currency.
4. Build on it
If you’ve decided to go ahead and build a new home, that’s great! But only as long as your excitement doesn’t cloud your better judgment and you make all the needed considerations prior to pulling the trigger. For further details see: https://landanswer.com/environmental_considerations_when_buying_land.html
For starters, you need to determine whether there are any risks that prey on your investment. If you’re going to be building in an area that’s at a high risk of being hit by a natural disaster, you may want to think twice before proceeding. Then, you need to check for signs of contamination like waste, radiation, heavy metals, etc.
Before building anything, you’re also going to need a construction permit. Too often we’ve seen the unfortunate fates of those who decided to ignore the legal aspects of constructing a new building completely, only to find it demolished by the authorities later on (and as if that wasn’t enough, the poor real estate owners were slapped with having to pay for the demolition costs on top of it). So don’t try to circumvent the law, it’s just not worth it.
5. Sell it to LandAnswer.com
Because we understand the typical challenges and hurdles of people who have a piece of land that they’re really not interested in holding on to, we’ve come up with an alternative: Sell it to us! And we’ll take care of the rest so you won’t have worry about the hassle. Our offers are fair, and compared to all the effort you’d have to go through by selling it yourself or listing it with a Realtor, you are guaranteed to see immediate results.
By choosing to sell it to us, you can cash out of it immediately, and you won’t have to worry about finding a buyer. Instead of having to go through time-consuming processes and dealing with prospective buyers with a lot of talk and no action, you can cash in on your property immediately and take a vacation instead.
Click Here to Get a Fair Cash Offer Right Away!
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