Getting an older home ready for sale is a lot of work, sometimes requiring extensive repairs and updates to make it attractive enough to today’s homebuyers. But if you don’t want to “spend money to make money”, there are some advantages to selling your home for lot value.

Lot value simply means the value of the land only. Property is assessed in two parts— the land and its structure—by local taxing authorities. As the land’s value rises, the structure can depreciate to zero due to structural issues, damage, obsolescence, and other reasons. A house deemed a “tear-down” by the marketplace may be purchased by a homebuyer intending to perform extensive renovations, or to demolish to make way for a new home. In an aggressively appreciating housing market, homebuyers will look favorably on a lot-value home.  

As the owner, all you need to do is make sure the property is safe and accessible for homebuyers to visit, and leave the marketing, showings, and negotiations to your Berkshire Hathaway HomeServices network professional.