Selling Inherited Land: How to Sell Inherited Land & Avoid Common Pitfalls in an Inherited Land Sale
- Sunbelt Land Partners
- Mar 21
- 3 min read
Updated: May 8
Inheriting land can be both a blessing and a challenge. While it may hold sentimental value, it can also come with responsibilities such as taxes, maintenance, and legal complexities. If you’ve inherited land and are considering selling inherited land, this guide will help you navigate the inherited land sale process while avoiding common pitfalls.
1. How to Sell Inherited Land: Understand Ownership and Legal Requirements
Before selling inherited land, ensure you have legal ownership and a clear title.
Steps to verify ownership:
Obtain the deed or title from the county recorder’s office.
Check for outstanding liens, property taxes, or mortgages attached to the land.
If multiple heirs are involved, determine if the property is in a trust, estate, or jointly owned.
Common Pitfall: Failing to resolve ownership disputes can delay or block the inherited land sale. If multiple heirs disagree, consider mediation or legal assistance to settle the matter.
2. Selling Inherited Land: Determine the Market Value of the Land
Knowing the fair market value of your inherited land sale will help you price it correctly and attract buyers.
How to estimate land value:
Check recent comparable sales (comps) in the area.
Use online valuation tools such as Zillow or LandWatch.
Consult a local land appraiser for a professional assessment.
Speak with a land-buying company for a no-obligation offer.
Common Pitfall: Overpricing your land can lead to long listing times, while underpricing results in financial loss.
3. How to Sell Inherited Land: Decide How You Want to Sell the Land
There are several ways to sell inherited land, each with its pros and cons.
Option 1: Sell Through a Real Estate Agent
✅ Best if your land is in a high-demand area
✅ The agent handles marketing and negotiations
❌ Agent commissions (typically 5-6%)
❌ Can take months or even years to sell
Option 2: Sell at Auction
✅ Fastest way to sell land in a competitive market
✅ No need for negotiations
❌ Unpredictable selling price
❌ Auction fees can cut into profits
Option 3: Sell Directly to a Land Buying Company (Fastest & Easiest Method)
✅ Quick sale with no agent fees
✅ Cash offer with fast closing (often within weeks)
✅ Sell as-is with no need for improvements
❌ May receive slightly below market value for the convenience
Common Pitfall: Not exploring all selling options can lead to unnecessary delays or losses. Weigh your priorities—speed vs. price—before deciding.
4. Be Aware of Tax Implications When Selling Inherited Land
Selling inherited land can have tax consequences, particularly capital gains tax.
Key tax considerations:
The IRS applies a stepped-up basis, meaning your tax liability is based on the land’s value at the time of inheritance, not the original purchase price.
You may owe capital gains tax if the land appreciates before selling.
Consult a tax professional to minimize tax burdens and understand deductions.
Common Pitfall: Many sellers forget to consider taxes, leading to unexpected liabilities at tax time.
5. Avoid Common Mistakes in an Inherited Land Sale
Here are some mistakes to avoid when selling inherited land:
❌ Failing to clear title issues – Ensure there are no ownership disputes or liens.
❌ Pricing too high or too low – Get a professional valuation to set a fair price.
❌ Ignoring taxes – Understand capital gains tax and potential exemptions.
❌ Not considering a direct land buyer – Selling directly can be the fastest and most hassle-free option.
Final Thoughts:
Sell Your Inherited Land the Easy Way
Selling inherited land doesn’t have to be stressful. If you want a fast, hassle-free inherited land sale, consider selling to a professional land buyer like Sunbelt Land Partners (SLP). We offer fair cash prices, handle all paperwork, and close in a matter of weeks.
Get a Free Cash Offer Today!
Our team is here to make the process simple and stress-free.Get a fast, no-obligation cash offer today!
