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March 28 2016


Checkout Your Options Before Selling Your Land

we buy land
To dump real estate is a one of the major tasks that one has to carry with due responsibility. Of all the real estate assets, land is truly the most valuable. Land plots have invariably been objects of purchase, sale or bargain. The number of transactions with land plots is huge and still growing every day throughout the nation. One of many dominant factors this is actually the rising price of land plots from the capital and suburbs.

sell your land
People do have a tendency to retain their land ownership viewing it security that can be a valuable a part of a diversified assortment of retirement asset. They don't really even want to face the inconvenience of dealing with rental contracts including establishing and collecting rents, repair and maintenance, and the liability exposure. Some are fearful that land values (rents) will fall and real-estate taxes will increase, leaving them less and less income. Others fear land values will rise while increasing their estate taxes.

If you opt to sell your land and/or building there are several ways to accomplish this.

 Sell it for cash:
 Sell your land for cash in a lump sum and therefore you have to pay all the accompanying taxes. It is advisable to resort to this mode of sale only if you are in an urgent need of funds and your land may be the only asset left to dispose off.

 Sell it with a contract for deed:
 A land contract puts you in the position of a lender. Since the contract payments are made, you include them with your taxable income over the number of years. By signing a land contract deed with installment sale reporting, you need to do obligate yourself or your heirs to paying of the income tax on the gain. From time to time selling on a contract offers the buyer with a way to obtain credit and terms they can afford. However the buyer is likely to pay you a lot of interest over the life of the contract. And again the interest you receive from the buyer is fully taxable to you personally. If you become a agreement for deed holder, you assume the chance of default by the buyer. You may get your land back through forfeiture or else you may be forced to foreclose on the party in default.

 Sell your land piecemeal:
 You may also sell your land piecemeal that is certainly bit by bit at a time, since the buyer can afford to buy it. Using this method, the client can apply all purchase money to principal and none to interest. Land Developers are eager to find owners prepared to sell land piecemeal as the owners are often wanting to get rid of it - in particular when it was purchased at the height of the market. In fact, some owners have let parcels revert back to the previous owner if development wasn't feasible.

 Consider a tax-free exchange:
 Exchanging like-kind property can postpone your taxation of capital gains. Section 1031 in the Internal Revenue Code (IRC) offers property buyers and sellers a golden opportunity to defer their taxes on capital gains if they reinvest the proceeds to get of like-kind property. Properties are believed to be to be of a like-kind if your property acquired is alike in nature and situated in the United States. If you are to be entitled to a 1031 exchange the transaction must be done in accordance to the exchange rules set forth in the tax code along with the treasury regulations.

Seeking professional advice and assistance from established real estate agencies when you wish to sell your land is without a doubt the best approach. Real estate agents offers many useful services and help you in different ways. They supply the landowners the best approach to selling their real-estate at fair rate. With access to a sizable network of land investors, developers and homebuilders they could offer the best price inside the real estate market for your valuable property asset.

Don't be the product, buy the product!