Selling Vacant Land in Tennessee: What to Expect From Start to Finish

Most of the Tennessee landowners we talk with fall into one of two groups. Some own family land that’s been passed down for generations, with taxes paid by whichever relative remembers and several people who each own a share. Others bought a few acres years ago as an investment or a future homesite, moved on with life, and are ready to be done with it.

Either way, here’s what selling vacant land in Tennessee really involves, what can slow it down, and how much of the work falls on you.

Why Does Vacant Land Take Longer to Sell?

Land is harder to sell than a house almost everywhere. There are fewer buyers, fewer sales to compare it to, and many banks won’t lend on raw land. A lot of agents also avoid small land listings because the work is the same as a house for a much smaller commission.

Tennessee adds a few of its own challenges: old deeds, family land with many owners, steep or rocky ground, septic rules, and greenbelt taxes. None of these make your land unsellable. They just mean someone must do the work to sort them out.

What If the Land Has Several Family Owners?

This is the most common thing that slows down family land in Tennessee. When someone passes away without a will, the land goes to their heirs, and over a few generations it can end up owned by a dozen relatives in different states. Each one owns a share of the whole property, so one person can’t sell it alone.

Tennessee recently adopted a heirs’ property law that gives family members more protection before a court can force a sale. It’s a good protection for families. It also means the sale needs everyone’s cooperation, and our team is used to that. We help locate family members, get everyone the same paperwork, and work with an attorney when probate or other legal steps are needed. Learn more in Selling Inherited Land in Tennessee: What You Need to Know.

What If the Acreage Doesn’t Match?

This happens a lot with older Tennessee land. The deed says 40 acres, the county tax record says 31, and a surveyor might find something else. Old deeds were written long before GPS, and over the years pieces were sold off or taken for roads without the paperwork being updated.

You can look up what the county shows for your land on the free Tennessee Property Viewer. If there’s a big difference, a survey settles it. It’s better to find out early than at closing. If the deed itself has errors, see Mistakes on Your Deed? How Your Tennessee Land Can Still Be Sold.

Does the Lay of the Land Matter?

Yes. It affects what the land can be used for, and that affects price.

• East Tennessee: steep mountain land can mean only part of the acreage is usable for building.
• Middle Tennessee: rocky ground and sinkholes are common in some areas.
• West Tennessee: low, flat land near rivers can sit in a flood zone.
• Across the state: standing timber can add value, unless it was logged recently.

Will the Land Pass a Perc Test?

If the land doesn’t have public sewer, a buyer who wants to build will need a septic system. In Tennessee, the soil must be checked and approved under state rules before a septic permit is issued. The state’s soil handbook explains the standards. Land that fails isn’t worthless. It may still work for an alternative system, recreation, hunting, or a neighbor who wants more acreage. But it does affect price, and it should be talked about up front.

What About Greenbelt Taxes?

Many Tennessee landowners have their property in greenbelt, which lowers property taxes on farm, forest, or open land. If the new owner takes the land out of greenbelt, past tax savings can come due as rollback taxes, generally three years for farm and forest land and five years for open space. The Tennessee Comptroller’s greenbelt page explains how it works. Who pays the rollback is agreed on in the contract.

What If the Taxes Are Behind?

You can usually still sell. Back taxes are typically paid out of the sale money at closing. Just don’t wait too long, because the county can eventually sell the land at a tax sale. We explain the whole process in Behind on Property Taxes? You Can Still Sell Your Tennessee Land.

What Does Closing Cost?

Tennessee charges a state transfer tax on land sales of 37 cents per $100 of value, and by law it’s owed by the buyer (Tennessee Department of Revenue). Other closing costs can include title insurance, recording fees, and your share of this year’s property taxes. Every cost shows up line by line on your settlement statement before you sign.

What Do You Have to Do?

Very little. You don’t need to travel to Tennessee, visit the land, order a survey, or track down relatives yourself. Your part is usually a phone call, verifying your ID with the title company, signing the closing papers with a mobile notary, and choosing how you want to be paid. If we ever need anything more from you, we’ll tell you before you sign anything.

What to Watch For With Other Buyers

Many companies mailing land offers aren’t buying the land themselves. They put it under contract and look for another buyer. Ask any buyer up front whether they’re buying it themselves or might bring in another buyer. An honest buyer will tell you plainly.

Also be careful with offers that drop with no real explanation, buyers who want you to pay for surveys or attorneys, and anyone who says your land “can’t be sold.” Usually that means it can’t be sold easily, which is a different problem with a different answer. For more, read our guide from a retired law enforcement officer: How to Protect Your Land From Scams: A Retired Law Enforcement Officer’s Guide for Tennessee Landowners

This article is general information, not legal or tax advice.

About Copco Properties

Copco Properties is Owned and Operated by a Retired Law Enforcement Officer and a Military Veteran. In law enforcement, when someone called with a problem, the job was to show up, listen, get the facts, and help solve it. We bring that same approach to land. Back taxes, inherited property, title problems, no road access: these are the situations we work through every day. Brent, our military veteran, served at Fort Campbell and brings the same commitment to doing the job right and seeing it through.

• No commissions and no hidden fees.
• Every sale closes at a reputable title company.
• We’re up front about everything, and we’ll explain every number and every step in plain English.
• No pressure. Take all the time you need.

If you own vacant land in Tennessee and are ready to sell, call us at 615-610-3303 or fill out the short form on our website. Tell us roughly where the land is, and we’ll research it ourselves and come back with a free, no-obligation offer.