Inheriting vacant land can initially seem like a financial windfall or a meaningful gesture from a loved one. But it also presents several significant challenges and potential costs that can complicate the process. These hidden costs aren’t always apparent from the outset and often emerge as you dig deeper into the responsibilities of landownership.
At such a time, you may be dealing with an array of emotions, grappling with the grief of losing a loved one while trying to navigate complex property and tax laws.
Family dynamics can also add to the complexity, especially if the inheritance has been split among multiple family members, each with their own views and intentions for the property. Furthermore, location-specific costs, like state inheritance taxes or municipal levies, can vary widely across the U.S., making it crucial to familiarize yourself with the local laws and regulations.
So, as you go through the process of inheriting vacant land, it’s important to be aware of these potential costs and issues. That way, you can make informed decisions that honor your loved one’s legacy while also safeguarding your own financial well-being.
Tax Obligations
Once the property is in your name, the property taxes will become your responsibility. When you inherit land, you also inherit the property tax bill. Depending on where the land is located, property taxes can be quite high. Taxes vary dramatically by location but can make a big difference in the holding costs you’re paying on the land. You may also be on the hook for estate taxes if the estate lacks the money to cover the bill. And there can be capital gains taxes in certain situations as well as a state inheritance tax depending on where your property is located. No matter how you look at it, you might be responsible for a good amount in taxes as the new owner of the property. Make sure you budget for these taxes so you’re not caught off guard.
Maintenance and Repair Costs
Some land may require ongoing maintenance Is there grass needing mowed, fences repaired, or fruit trees to be maintained? Things like this all need to be taken care of regularly. Whether you do the work yourself or hire someone to do the job, you’ll be dedicating time and money to the general maintenance of the property.
Depending on where the land you inherited is located, you may be faced with expenses to bring it up to code. Even if it’s in good condition, you may still need to budget for ongoing maintenance costs.
Even if the land is vacant, it still requires some level of maintenance. This could include tasks such as clearing overgrowth, managing pest infestations, or maintaining fencing. Depending on the size and condition of the land, these costs can add up over time.
Lack of Income Generation
Unlike a rented building or a property that’s used for business, vacant land generally doesn’t produce any income. Unless you’re able to rent the land for a specific purpose (like farming or storage), it may just represent an ongoing cost without providing any financial return.
Legal and Zoning Issues
There may be zoning restrictions or legal covenants on the land that restrict what you can do with it. For example, you might inherit land that’s zoned for agricultural use when you were hoping to build a house on it. Understanding these restrictions can require considerable time and legal expertise, and potentially dealing with local governments if you want to have restrictions changed.
Mediation Expenses
Sadly, when a loved one passes away, disputes between family members can arise. If you have siblings or others with a claim to the estate, you may find yourself dealing with mediation fees. A quick way to resolve this is a buyout or a fast sale, dividing the profits. EagleView Land Sales can facilitate a fast and fair sale of your property, closing in a matter of days. This solution has saved countless families from having to deal with mediation or court.
While these are just a few of the costs to own land, there are more to consider. You’ll need to pay for appraisals, listing fees, and more. By selling the land quickly and as-is, you can save money, while liquidating the property much faster.
Sell Your Land to Avoid Costs
If you decide to sell the inherited land, you’ll need to factor in selling costs, such as real estate agent fees, closing costs, and any maintenance needed to make the land marketable. These costs can add up quickly, so make sure you have a realistic understanding of what you’ll need to spend to sell the land. That said, a direct sale to EagleView Land Sales will eliminate selling expenses altogether.
How EagleView Land Sales Can Help
Do you have questions about inheriting a piece of land? EagleView Land Sales can help you find the answers you need. We understand that it may be a difficult time, and we are very compassionate and understanding. We will never talk you into a deal that isn’t right for you – we will simply give you the facts and leave the rest up to you!
Inheriting vacant land can come with costs you may not be prepared for. EagleView Land Sales can help you with any unwanted inherited property, making the process simple for you. A direct sale to EagleView Land Sales will allow you to sell quickly, without any costs or headaches so you can utilize your inheritance without any undue stress. Give us a call today to learn more about how we can help with your inherited property. (888) 303-4424