Should You Sell Your Land: Part 1

Should You Sell Your Land. That IS a Big Question!

Landowners frequently ask themselves whether they should sell their land.  There are several factors and financial considerations that need to be considered to determine if you should sell your land or not sell your land.  Here are two things to consider when deciding to sell:

1.  How did you acquire the land?  Did you buy it for investment?    Did you buy it to build a home or cabin?  Did you inherit the land?

If the reason you purchased the land is no longer important, then it might be a good reason to sell.  For instance, if you’ve decided not to build on the land, do you really want to continue owning it? Or if you need to diversify your investments and have too much real estate in your portfolio then you may decide to sell your land.  If you inherited the land, you may be holding on to the land because in your mind, it may disappoint your loved ones who are now deceased.  In the interactions I have had with landowners, this is usually not the case.  The owners of the land who pass it along to you usually want you to do what you want with the land once inherited.   If they want you to hold on to the land, they will usually specify that in their will.

2.  Do you have a sentimental attachment to the land.  Is this the old family homeplace?  Did you bag your first turkey on this property?  Did you spend your summers on the land?

Can you really afford or justify holding onto the land for sentimental reasons?  It’s important to remember that sentimental attachment does not make the property more valuable for a potential buyer.  While I respect sentimenntal attachment to land, at the end of the day, it really will not affect what a buyer will pay.  As I said above, if the land was passed along to you for you to keep the land/hold onto the land, this is usually specified in the will.

These are just two of the points to consider when deciding to sell your land.  Please watch for upcoming posts on this same topic.

If you have any questions or comments about this please add your comments or contact us to discuss further.

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