So, it’s been a while since your grandparents passed away. Didn’t they leave you a piece of land somewhere? What did you ever do with it?

If you are reading this, you are probably in this situation. What are you doing with that piece of land? Is it an asset producing income, or has it become a liability? Many of us have been lucky to inherit land, and if there’s sentimental value in the property, it becomes a legacy. But more often than not, it’s just a piece of land. Perhaps on old hay field, and you’ve leased it to a farmer. Or timberland, and you’ve leased to a hunter. That’s great if you have eventual plans for the land and the leases cover the property taxes. But if you don’t see yourself ever enjoying it personally, perhaps it’s time to make a change.

My family has several tracts of land that are leased to hunters and farmers, as well as managed timber. My husband even hunts one of those tracts, but what we really dream about is a family compound in Western North Carolina where he can hunt, I can grow Christmas trees, and we can build cabins for our girls when they visit (or boomerang, which seems to be the norm these days!) Like you, I have lots of reasons why I haven’t sold any of it yet:

1. Sentimental reasons – get real; while I loved my grandparents, I have very few memories connected with this land.
2. Tax consequences – get real again; federal capital gains tax is 15% (states vary), which is relatively low compared to income tax and the inheritance and capital gains taxes a few decades ago. Plus, there’s always the 1031 exchange to avoid taxes.
3. Market value – compared to 2007-2008 values. Sure, you might have gotten $40K/acre at the height of the market and it may come back to that in the future. But market fluctuations have occurred across the country. If you are lucky enough to own in a high growth area, you have an opportunity to sell high and buy low, to make a stock market analogy. At worst, you sell low and buy low, but at least you have a property you will use.
4. Undivided interest – the other heirs. Are you afraid they will think poorly of you for selling the family land? I’ve found that my brothers place no sentimental value on the land we own, and as we get older and wiser, we have reached a consensus that there’s no reason to hold onto land in South Carolina when we all want mountain property in Western North Carolina.
5. Timing isn’t right – we still have kids at home. Actually, the more I think about this, the more I wish we had arrived at the decision to sell and buy our dream property sooner when we had more time to make memories that build legacies that last generations.

It’s time to let go of someone else’s legacy and create your own. Find the perfect property that fits your dreams. We can help you!