An inherited plot of land comes with a lot of sentimental attachment for the parties involved, which makes it rather difficult to decide what to do with the property. This is especially true if you’ve inherited the piece of land jointly with a large number of family members.
To help you with your decision, we’ve come up with five clever things you can do with your family’s land. See which of these ideas would work best for your property and present them at your next family meeting.
Sell and Split the Profits
Owning a property with other family members means that the beneficiaries own partial rights to it. Unless you decide to build something together, the simplest option is to sell the plot of land and share the profits.
Selling inherited property isn’t that different from selling any piece of property. Once you get all beneficiaries on board, it’s essential to have a professional appraisal. Then, define a method for determining the sales price, including whether the price is based on the market value or a discounted value. Keep a presentation folder with all the necessary documents.
The next step is to find buyers. The fastest option to sell inherited land is to contact “we buy land” websites. These sites are operated by real estate investors who are constantly looking for new properties and provide lucrative cash offers to buy your unwanted piece of land.
Rent the Vacant Land
If your relatives don’t agree to sell the real property just yet and you agree it’s a valuable asset, consider turning it into an investment. One way to do that is to rent it and split the income. Farmland and hunting leases can be very profitable.
Be sure to set some type of partnership agreement beforehand and designate independent property management. The manager will take a portion of the payment but they will relieve the pressure on the property owners. They will be making decisions on a daily basis and handle routine maintenance of the land instead of you.
Donate the Lot to Your City
If your family doesn’t plan on using the plot of land and you’re looking to get it off your hands, consider donating it to your city. For example, the local fire department may need land for a station, or the city college may look for a space for student housing. There’s always a need for an additional park or a playground.
If you think any of these could work, contact the city office and check if there’s a program for vacant lots. Some cities work with vacant landowners to get something built. Learn if the city has a plan and if you can participate in it. You’ll be getting the unwanted land off your hand while also giving back to your community.
Start a Community Garden
Expansive plots of land can be great for starting a community garden. Contact your local government office to get the project approved and then put the word out. Post on social media or curate flyers to let fellow gardeners know about your mission.
Start by pooling funds to buy starter plants. Then, create a volunteer schedule so that there’s always someone to water the plant, maintain the community garden, and gather produce. If your garden gives more produce than you can consume, consider donating the excess to the local food shelter or sell it and use the proceeds for the garden project.
Donate the Property to a Charity or Church
You can choose to donate your family’s land to charity or church as a direct gift. Not only will you be doing something noble but you’ll also get a vast range of benefits that you wouldn’t get if you decide to sell it.
First of all, donating land is a relatively quick process with minimum paperwork. The deed is smoothly transferred from you to the charity or church. As donors, you will also be eligible for a real estate donation tax deduction based on the market share of the property. You’ll also avoid the Capital Gains Tax, which is a must to pay when selling your property instead of donating it.
Final Words
Inheriting vacant land can leave you with a lot of questions. In most cases, you won’t have to make immediate decisions regarding the land because you can’t legally do anything with the property until probate is complete. But, it’s always a good idea to be prepared and know your options. Hopefully, we helped you understand in which ways you can leverage your family’s plot of land. Evaluate the pros and cons and decide what’s best for your family depending on your unique situation.
