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Land Investment

Selling Raw Land: Your Three Options and What Each Costs

By Erik Peterson7 min read
In this guide
  1. How long land takes to sell
  2. Route one: a land broker
  3. Route two: selling it yourself
  4. Route three: a cash buyer
  5. What your land is actually worth
  6. The tax side, in general terms
  7. Before you list or call
  8. Where Landopia fits in this
  9. FAQ: Selling raw land

A note from Erik

I buy rural land, so when I tell you selling to a cash buyer is fast and nets less than a patient retail sale, understand that I am the cash buyer and I am telling you the part that argues against me. I am not a CPA, a tax attorney or a real estate broker, and none of this is advice about your situation. Sources at the bottom, and the tax figures are tagged to their tax year because they move.

Maybe it came with an inheritance. Maybe you bought it eleven years ago meaning to build and life went a different direction. Maybe the taxes come every year for ground you have not stood on since the closing. Whatever put you here, you are looking at a parcel and wondering what it would take to turn it back into money.

There are three real ways to do that and they trade off against each other in a way nobody spells out: the more you want for it, the longer you wait and the more of the work you do yourself. Everything else in this article is detail on that one sentence.

Inherited it and never wanted it, bought it and moved on, holding two parcels and only need one, or just tired of the tax bill? Y'all are in the right place. Here is the honest version, including where I fit and where I do not.

Nobody knows how long land takes to sell

Start here, because it shapes everything else. There is no reliable published figure for how long rural land sits before it sells. I went looking for one. No federal agency publishes days-on-market for land, and there is no academic dataset either. The housing market has that number and land does not.

What that means practically is that anybody quoting you an average time to sell is quoting their own book or a guess. Some parcels move in three weeks. Some sit for two years at the same price and then sell the week after a price cut. Plan for the long end and be pleased if it goes quickly, and do not make commitments that depend on a sale closing by a particular month.

Route one: a land broker

A broker who actually sells rural land is a different animal from a residential agent who will take the listing as a favour. Land takes longer, the buyer pool is scattered across the country, and the marketing is different. Ask any broker you are considering how many raw land parcels they closed last year, and in which counties.

What you get for the commission is reach, a price anchored to real comparable sales, and somebody else answering the phone. What it costs is the commission and the wait. On a parcel worth real money this is usually the highest net outcome if you can wait.

An aerial view of green fields divided by hedgerows with a dirt track running through.
Photo by Quang Nguyen Vinh on Pexels

Route two: selling it yourself

Entirely doable on rural land, more so than on a house, because land buyers are used to doing their own diligence. What you are signing up for is the whole job: pricing it, photographing it, listing it on the land marketplaces, answering questions about access and zoning and septic, weeding out the people who are never going to close, and coordinating title and closing yourself.

The two things that sink FSBO land sales are pricing off what you paid rather than off comparable sales, and not having answers ready. A buyer who asks whether the parcel has legal recorded access and gets a vague answer moves on. Have the parcel number, the county, the zoning, the tax bill and the access situation written down before you list. The same five questions every buyer should be asking are the five you should be able to answer in your sleep.

Route three: selling to a cash buyer, which is us

I will be straight about this because you can find out anyway. A cash buyer pays less than a patient retail sale would. That is not a trick, it is the business: we take the parcel off your hands quickly, we take on the risk and the holding cost and the work of reselling it, and the discount is what pays for that. Anybody in my line telling you they pay retail is not telling you the truth.

What you get for the spread is speed and certainty. No listing, no showings, no waiting for a buyer's financing, no deal falling apart at the last minute. We look at the parcel, we make an offer, and if you take it we close. For some sellers that is worth a great deal, particularly where a parcel is producing nothing but a tax bill or where an estate needs settling and several people need to agree on something.

For others it plainly is not worth it, and if you have time and the parcel is desirable, list it. I would rather tell you that than buy a parcel from somebody who later works out they left money on the table.

What your land is actually worth

An aerial view of a pale mown strip running between a treeline and a green crop field.
Photo by Antonio Di Giacomo on Pexels

Price is set by recent comparable sales in that county, not by the asking prices you see online and not by what you paid. Asking prices tell you what sellers hope for. Closed sales tell you what buyers paid, and the county assessor and the recorder both hold that information.

For a sanity check on whether your expectation is in the right neighbourhood, USDA publishes a Land Values summary every year with per-acre figures by state and region. Pasture is the closest published match for most rural recreational ground, and in 2026 it ran $2,000 an acre nationally, against $6,020 for cropland. Regional variation swamps the national number: pasture runs about six times higher in the Southeast than in the Mountain region. It is a benchmark rather than an appraisal, and we went through what the data does and does not support in what the numbers actually show about land values.

Three things move a rural parcel's price more than acreage does: legal recorded access, whether it will take a septic system, and how far it is to a paved road and a town. A landlocked parcel and a parcel with frontage are different products at different prices, whatever the map says about their size.

The tax side, in general terms

I am not a CPA and this is not advice, but there are four mechanics worth knowing before you talk to one, because they change the questions you ask.

Holding period. Land held more than a year produces long-term capital gain, taxed at 0, 15 or 20 percent depending on taxable income. For tax year 2026 the zero-rate ceiling is $49,450 for a single filer and $98,900 married filing jointly, and the 15 percent band runs up to $545,500 and $613,700 respectively. A parcel held a year or less is taxed at ordinary rates instead. There is also a 3.8 percent net investment income tax above $200,000 of modified AGI single or $250,000 joint, and those two figures are statutory and have never been indexed for inflation.

Basis. What you paid, plus a specific list of things IRS Publication 551 says you can add: title fees, legal fees, recording fees, surveys, transfer taxes, owner's title insurance, utility installation, and improvements lasting more than a year. Loan costs and appraisal fees required by a lender do not add to basis. There is also an annual election under section 266 to capitalize property taxes and carrying costs into basis instead of deducting them, and the thing people miss is that on unimproved unproductive land that election has to be made every single year.

Reporting. Whoever handles the closing files a Form 1099-S, and the instructions name unimproved land explicitly as a reportable transaction. Your side is generally Form 8949 flowing to Schedule D if you held it as an investment. If you have been selling parcels regularly it can be a different classification entirely, which is a real question for a CPA rather than a blog.

Two structures worth knowing exist by name so you can ask about them. A section 1031 like-kind exchange still applies to real property held for investment, with a 45-day window to identify a replacement and 180 days to close, and it requires a qualified intermediary because touching the proceeds yourself breaks it. And if you finance a buyer yourself, the installment method under Publication 537 spreads the gain across the years you receive payments rather than taxing it all at once, reported on Form 6252. Both have real requirements. Neither is something to attempt off the back of an article.

Before you list it, or call anybody

An afternoon of this makes every conversation afterward shorter and every offer better:

Before you list it, or call anybody

  • Confirm you can actually convey it.

    If it came through an estate, make sure title is genuinely in your name and probate is finished. This is the single most common reason a land sale stalls at closing.

  • Get the tax status current, or know exactly what is owed.

    Unpaid property tax is a lien that follows the land, and a buyer will find it. Better you raise it than they do.

  • Pull the parcel number, acreage and legal description.

    From the county assessor. Every conversation starts with these and not having them makes you look like you are not sure what you own.

  • Establish whether it has legal recorded access.

    Check the recorder for an easement or public road frontage. This moves the price more than almost anything else and you want to know before a buyer tells you.

  • Find three recent comparable sales in that county.

    Closed sales, not asking prices. The recorder has them. This is your price, and it is the number that ends arguments.

  • Decide what speed is worth to you, in dollars.

    Write down the number you would take today versus the number you would wait a year for. If the gap is small, take the fast route. If it is large, be patient.

Where Landopia fits in this

If the fast route is the one you want, we buy rural parcels across the states we operate in and we will tell you plainly what we can pay and why. We are not the highest number you will ever be quoted and I am not going to pretend otherwise. What we are is certain: an offer, a closing, and done. If speed is not worth the spread to you, list it with a land broker and you will very likely net more, and that is a perfectly good outcome that I would rather you reach on purpose than by accident. Our Land Specialists can look at a parcel number and county and tell you within a day whether it is something we would buy.

See All Available Land

And if what you actually want is to trade this parcel for one you would rather have, read land for a homestead or a cabin and talk to us about both sides at once.

Selling a piece of ground is mostly an arithmetic problem wearing an emotional coat. Work out what it is worth from real closed sales, work out what speed is worth to you in dollars, and the right route picks itself.

Whichever way you go, the parcel will still be there while you decide. Land is patient even when the people who own it are not.

Frequently Asked Questions About Selling Raw Land

How long does it take to sell raw land?

Nobody publishes a reliable figure, which is itself the useful answer. There is no federal or academic dataset on days-on-market for rural land the way there is for housing. In practice it ranges from a few weeks to a couple of years depending on price, access and county. Plan for the long end.

Do I need a real estate agent to sell land?

No, and land is more FSBO-friendly than housing because land buyers expect to do their own diligence. What a land broker buys you is reach, pricing anchored to real comparable sales, and somebody else doing the work. If you use one, use somebody who sells land rather than houses.

How do I figure out what my land is worth?

Recent closed comparable sales in the same county, which the recorder and assessor hold. Not asking prices, and not what you paid. For a sanity check, USDA publishes per-acre land values by state and region every year, with pasture being the closest published match for most rural ground.

Do I pay capital gains tax when I sell land?

Generally yes on any gain, at long-term rates if you held it more than a year and at ordinary rates if you did not. Your gain is the sale price less your adjusted basis, and basis includes more than the purchase price. Talk to a CPA, particularly if you have sold more than one parcel, because that can change the classification.

Does the home sale exclusion cover vacant land?

Generally no. IRS Publication 523 lists a sale that does not involve a dwelling as a disqualifier. The narrow exception is vacant land adjacent to your principal residence sold within two years of the home, and in that case both sales are treated as one transaction sharing a single exclusion.

What is a 1099-S and will I get one?

It is the form the settlement agent files reporting the gross proceeds of a real estate transaction, and the instructions list unimproved land as reportable. So yes, on a normal land closing one gets filed. It reports proceeds, not gain, so receiving one does not itself mean you owe tax.

Can I sell land with owner financing myself?

Yes, and the installment method exists specifically for it: gain is reported as payments come in rather than all in the year of sale, on Form 6252. There are real rules around it including how interest is treated, so this is a structure to set up with a CPA and an attorney rather than from a template.

Should I sell to a cash buyer or list it?

Depends entirely on what speed is worth to you. A cash buyer is faster and pays less; a patient listing usually nets more and takes longer. Write down both numbers before you decide, because the answer is obvious once you see the gap and almost nobody does the arithmetic first.

Sources & notes11
  1. IRS Topic no. 409, Capital gains and losses. Holding period and the distinction between long-term and short-term treatment. Accessed Sep 2026.
  2. IRS Revenue Procedure 2025-32. Maximum capital gains rate thresholds for tax year 2026: zero-rate ceiling $49,450 single and $98,900 married filing jointly, 15 percent band to $545,500 and $613,700.
  3. IRS, Net Investment Income Tax. The 3.8 percent tax and the statutory thresholds of $200,000 single and $250,000 married filing jointly, which are not indexed for inflation. Accessed Sep 2026.
  4. IRS Publication 523, Selling Your Home. Vacant land is generally not eligible for the principal residence exclusion; the narrow adjacent-land exception requires the two sales within two years and treats them as a single transaction.
  5. IRS Publication 551, Basis of Assets. What settlement costs add to basis on land and what does not, including that lender-required appraisal and loan fees do not.
  6. 26 U.S.C. section 266 and Treasury Regulation 1.266-1. The election to capitalize taxes and carrying charges, which for unimproved and unproductive real property is effective only for the year in which it is made.
  7. IRS Publication 544, Sales and Other Dispositions of Assets. Reporting a land sale, and the distinction between a capital asset, section 1231 property, and property held mainly for sale to customers.
  8. IRS, Instructions for Form 1099-S. The person responsible for closing files the return, and reportable transactions expressly include unimproved land.
  9. IRS, Instructions for Form 8824. Section 1031 applies to real property held for investment for 2018 and later years, with the 45-day identification and 180-day exchange deadlines and the qualified intermediary safe harbor.
  10. IRS Publication 537, Installment Sales. The installment method applies automatically to a qualifying sale, is reported on Form 6252, and splits each payment into interest, return of basis and gain.
  11. USDA National Agricultural Statistics Service, Land Values 2026 Summary. Pasture $2,000 per acre nationally and cropland $6,020, with regional tables. Released July 2026.

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