Moving from Tennessee or inherited land that has been left unused for years? Instead of paying the unused property taxes, selling it at the best price would be an ideal decision. But how to sell land in Tennessee avoiding hassle?
To sell land in Tennessee, you must go through some crucial steps like preparing your land for sale, setting the price-worthy deal by understanding market value, and so on. Wait!
Don’t worry, in this article, I’ll share all those steps to sell land in TN with pro tips. So, let’s jump off!
Understanding the Tennessee Land Market-Steps Before Selling
Before you jump into the selling procedure, you must know the land value in Tennessee.
According to Investopedia report,
“In 2023, the median home value went up by a big 18.2%, showcasing the demand for properties and vacant land.”
So, it’s a green light for you now to sell your vacant, unused land at the best possible price. Whether you own rural farmland or forest land, there’s a buyer out there waiting to buy.
Well, some other factors like size, location, property zoning for any land use restrictions affecting the development opportunities, etc. can affect the land value.
Land nearby cities like Nashville, Knoxville, or Memphis boosts land value, especially for residential or commercial use. However, rural areas near scenic spots or tourist attractions (like the Great Smoky Mountains) can be highly desirable for recreational buyers increasing the land value.
However, to determine all these facts, firstly, get an exact estimation of how much is an acre worth in Tennessee.
It might be as efficient as ranging from $5,000 to $25,000 per acre for farmland and $50,000 to $200,000+ per acre for lands in urban areas.
5 Steps On How To Sell Land In Tennessee
Let’s check out the major steps to sell your land in TN easily.
Step #1 Prepare Your Land For Sale-Need Some Hard Work
To attract potential buyers and demand a premium price, it’s essential to present your land in its best possible light, right? That’s where the land preparation comes in.
Remove any debris, waste, or other material that might disrupt the land view. Make sure to clear the land and keep it clean by trimming overgrown grasses. You obviously don’t want the seller to think it is haunted or valueless.
Also, highlight the boundary mark clearly to avoid any dispute with neighboring land.
An ideal step before selling land is to get the land surveyed properly. A land surveyor might help you avoid disputes and give buyers ideation about the exact land size.
According to Tennessee Land Surveyors Association, a survey typically costs between $500 and $1,500 depending on the size of the property.
Step #2 Set A Competitive Price- A Balancing Act
Now is your land ready for selling, time to set a price for the best deal. Market analysis can be ideal to set the price balancing market price.
Do research on how much other similar land plots are worth or check the sold price. If a nearby 10-acre plot with similar features sold for $100,000, it’s reasonable to price your 10-acre plot in the same range.
In a competitive market, being open to negotiation can get your land sold faster. Consider whether you’re willing to offer financing, split the cost of a survey, or adjust your asking price slightly if it means closing the deal sooner.
Step #3 Marketing Your Land with Multi-Channel Strategy
Effective marketing is essential for reaching potential buyers. Now that you want to sell land, this needs to be spread. In this case, you can go for the following ways-
Online Presence
In this tech-advanced era, online is the fastest way to reach more leads. There are some free websites to sell land fast like Zillow, Realtor.com, and Craigslist can be helpful. Besides, posting on different social media, and your own website can reach the audience, too.
But make sure to include high-quality photos, and clear descriptions, and highlight any unique selling points (like road access, zoning, or nearby amenities).
Targeted Marketing
Find out who can be your customers and create marketing that attracts them. For example, if your customers are retirees, talk about how peaceful and relaxing your land is. You can also run ads for land sales.
Local Partnerships
Sometimes, the best buyers are close to your residence or locality. Advertise in local newspapers, or collaborate with local businesses, such as real estate agents, property management companies, and tourism boards. They can help target the right buyers and negotiate the best price.
Step #4 Negotiate & Close the Deal-The Legal Work
Land sales involve a bit more paperwork than selling a house. When you get the offer,
you must be prepared with a legal contract outlining the sale price, any contingencies (e.g., zoning approvals), deadlines for inspections and closing, financing options, etc.
However, some other paperwork might be necessary here, such as
- Land purchase agreement outlining the terms and conditions of the deed.
- Legal Survey Documentation confirming the size and boundaries
- Ownership verification checks for any liens or claims against the property.
- Zoning Verification Documents for zoning designation and restrictions.
- A legal contract Lien Release showing the lien clearance
- Property Tax Records as proof of previously paid taxes
Step #5 Transferring Ownership & Pay Taxes-Final Work
Once both parties sign the agreement, time to transfer the deed to the new owner. Well, the work in this final step can vary depending on how you are selling your land. Paperwork for selling a land by owner can be a bit different from the paperwork for selling to a realtor or agent.
And yes, don’t forget that selling land in Tennessee comes with tax obligations. If you make a profit, you’ll likely need to pay capital gains tax. This tax rate can range from 15% to 20% depending on your land value and how long you are owning the land.
Well, you can avoid some of this tax by reinvesting the proceeds into another property using a 1031 exchange, a common real estate tax strategy. And here hiring a real estate attorney might help in doing the necessary paperwork in the country’s registry office. Here, you might need to pay a recording fee, which can range from $20 to $100 depending on the county.
What’s Driving Land Prices in Tennessee?
Tennessee’s land market is influenced by several factors:
Population Growth: Tennessee’s cities, especially Nashville, are growing fast. This means more people need places to live and work, driving up demand for land.
No State Income Tax: Tennessee doesn’t have a state income tax, making it a great place for businesses and people to move to.
Affordable Cost of Living: Compared to other states, Tennessee is pretty affordable. This attracts people looking for a better deal.
Tourist Hotspots: With places like the Smoky Mountains and Memphis, Tennessee is a popular tourist destination. This brings in visitors who might want to buy property.
Pro Tips to Sell Your Land at Highest Price
Sell in the Spring or Early Summer
According to the National Association of Realtors (NAR), April to July is the best time to sell land in Tennessee for its bright and delightful weather. During this time, people are more likely to buy lands with outdoor exploration.
Invest in Professional Photography
While marketing, highlight the natural beauty and recreational benefits of your land. Lands close to state parks and scenic destinations attract premium buyers.
Market Land for Development Potential
Tennessee law requires all liens be cleared before a land selling. Make sure to clear all liens and debts before transferring ownership.
Target Buyers Seeking Agricultural Land
As per the University of Tennessee Institute of Agriculture study, Tennessee is known for its fertile farmland, so consider marketing your land to agricultural buyers.
Highlight Any Timber or Mineral Rights
If your property contains valuable natural resources such as timber, minerals, or oil, make sure to promote these assets to increase land value.
Hire a Land Appraiser If You’re Too Busy
Hiring a professional land appraiser can provide a clear estimate. But a free land value estimator can help you too by providing you with an accurate assessment depending on the location, size, and zone.
An example from Tennessee Appraisers, Inc. shows that a 5-acre plot in Franklin, TN, can be valued between $150,000 and $200,000 depending on zoning.
Conclusion
So, now you know the steps on how to sell land in Tennessee. I’ve shared every step briefly with bonus tips to sell at the best possible value.
After selling land in TN the tax might seem to be a hassle. However, for quick and hassle-free selling with smooth paperwork dealing, contact Super Land Buyer to get the best value.
FAQs:
How Much Is An Acre Of Land In Tennessee?
The price of an acre in Tennessee varies depending on location. On average, rural land can range from $2,500 to $10,000 per acre. In more urban areas like Nashville or Knoxville, land prices can shoot up to $100,000 or more per acre, especially if it’s near development zones.
How To Sell Property In Tennessee Without A Realtor?
You can sell your property in Tennessee without a realtor by going the For Sale by Owner (FSBO) route. The steps include-
- Setting a price based on market research or hiring an appraiser.
- Marketing your land on websites real estate listing sites and social media.
- Handling the paperwork yourself or hiring a real estate attorney to assist with the legal documents and closing process.
- Negotiating with buyers and completing the sale with the help of a title company or lawyer.
Do You Need A Seller Permit In Tennessee?
No, you don’t need a seller’s permit to sell land in Tennessee. However, if you’re selling multiple properties as a business, you might need to check for any business-related permits. For just selling personal property or land, a permit isn’t required.
How Long Does It Take To Sell Land In Tennessee?
To sell a land in TN, it can take anywhere from a few weeks to several months, depending on factors like location, demand, and price. Rural land may take longer, while land near cities or with development potential could sell faster.
Why Is Land So Cheap In Tennessee?
Land in Tennessee is generally cheaper than in other states for a few reasons, such as low property taxes, growing population, and attracting tourist spots.
