How to sell inherited land
Inherited vacant land you don't need? Learn how to confirm ownership, handle probate, deal with taxes, and choose between listing and a cash sale.
Inheriting land can be a mixed blessing. It might be a few acres a grandparent bought decades ago, a lot in a subdivision that was never built out, or a parcel in a state you've never visited. Meanwhile, the property tax bills keep coming. If you've decided you'd rather have cash than land, here's how the process usually works.
1. Figure out exactly what you inherited
Start by identifying the parcel. Look for an old property tax bill, a deed, or the deceased owner's paperwork. The most useful piece of information is the parcel number (also called the APN, PIN, or tax ID). With it, you can look the property up on the county assessor's or GIS website and see its size, location, assessed value, and current owner of record.
If you don't have a parcel number, most county assessor sites let you search by owner name. Try the deceased person's full name, and variations with or without a middle initial.
2. Confirm who legally owns it now
This is where inherited land differs from a normal sale. Until title is formally transferred, the county's records will still show the deceased owner, and a title company won't let anyone sell without proof of authority. Common scenarios include:
- The land was in a living trust. The successor trustee can usually sell it under the trust's terms, often without probate.
- There's a will, and probate is open or completed. The executor (personal representative) typically signs, sometimes with court approval depending on the state.
- There was a transfer-on-death deed (allowed in many states). The named beneficiary records the required documents and then owns the land.
- There's no will. State intestacy laws decide who the heirs are. Some states offer simplified procedures, such as small-estate affidavits or heirship affidavits, for lower-value property.
Because the rules are state-specific, and the land's state controls, not yours, it's worth a short consultation with a probate attorney in the state where the land sits. Many title companies can also tell you exactly what documents they'll need to insure a sale.
3. Deal with multiple heirs early
When siblings or cousins inherit together, every owner (or the estate's representative) generally needs to sign. Talk early about whether everyone wants to sell and how proceeds will be split. Disagreements are the number one reason inherited land sales stall. If one heir wants to keep the land, a buyout between family members may be simpler than an outside sale.
4. Check for back taxes, liens, and other surprises
Inherited land often has unpaid property taxes, especially if no one realized the bills were still arriving. Look up the parcel on the county treasurer or tax collector's site. Delinquent taxes don't usually block a sale; they're typically paid out of the proceeds at closing. But if taxes have been unpaid for years, the county may be approaching a tax sale, so don't wait too long.
Also look for HOA or property owners' association dues (common in rural subdivisions), code enforcement liens, and any mortgage or judgment liens. A title search will turn these up before closing.
5. Understand the tax side (briefly)
In the U.S., inherited property generally receives a "stepped-up" cost basis equal to its fair market value on the date of death. That often means little or no capital gains tax if you sell soon after inheriting. Your situation may differ, so check with a CPA or tax professional before you sell, and keep a record of the property's value around the date of death.
6. Decide how to sell: list it or sell for cash
You have two main paths:
Listing with a real estate agent
For land in a desirable, active market, an agent may get you the highest price. The trade-offs: vacant land often takes many months to sell, commissions on land can be higher than for houses, and you'll keep paying taxes in the meantime. Some agents won't take low-value rural parcels at all.
Selling directly to a cash land buyer
A land investment company makes you an offer, usually below full retail value, but there are no commissions, closing costs are often covered, and the deal can close in weeks. This works well when the land is remote, low in value, has back taxes, or when you simply want it handled without traveling.
Whatever you choose, get the offer in writing, make sure closing goes through a licensed title company or closing attorney, and never sign a deed directly to a buyer outside of a proper closing.
7. Close from wherever you live
Most land closings today can be done remotely. The title company sends the documents, you sign in front of a notary (mobile notaries will come to you), and the funds are wired once the deed is recorded.