What to Do When You Inherit Land in Virginia in 2026

Inheriting land in Virginia can feel like receiving both a gift and a to-do list. Land values and market dynamics shift quickly, and your choices—hold, lease, sell, conserve, or develop—can have major legal and financial consequences. Recent market snapshots show just how much is at stake: Virginia agricultural land sold in 2023 averaged $5,464 per acre, while transaction volume fell to 1,461 transactions (down from 2,159) according to Mossy Oak Properties. This guide walks you through the next steps so you can protect your ownership, understand your property’s true potential, and make confident decisions.

Verify Ownership (and Confirm You Inherited What You Think You Did)

Start by gathering every document tied to the transfer of ownership. Your goal is to confirm that the land is legally yours and that the recorded description matches the real-world parcel.

• Locate the deed and legal description and compare it to any plat map or survey available.
• Confirm the probate or trust transfer by requesting copies of the will, trust documents, executor’s deed (if applicable), and any filed affidavits.
• Check for title issues by reviewing public records for liens, judgments, boundary disputes, easements, and mortgages.

If other heirs may contest the inheritance, review probate filings early. Identifying conflicts now is far easier than dealing with a surprise challenge later—especially if you plan to sell or finance the land.

Inspect the Property Thoroughly (On the Ground, Not Just on Paper)

Even if you’ve seen the land online, walk it in person or send a trusted professional (surveyor, forester, or land manager) to do it with you. A site visit helps you confirm boundaries, spot encroachments, and understand what the property can realistically support.

• Walk boundary lines using the deed description, any survey, and visible markers (pins, stakes, fences).
• Document access (road frontage, shared driveways, deeded rights-of-way) and note any landlocked concerns.
• Assess physical features such as drainage, slopes, timber stands, streams, trails, and existing structures.
• Photograph everything—especially entrances, boundary markers, and any questionable uses or dumping.

If neighbors are nearby, introduce yourself. They often know about old logging roads, informal access arrangements, or long-standing boundary assumptions that can become legal problems if left unaddressed.

Research Zoning, Land-Use Rules, and Environmental Constraints

Zoning and local ordinances control what you can build, operate, subdivide, or even park on the property. Before you invest money (or list the land for sale), call the county or city planning office and confirm:

• Current zoning classification and allowed uses (residential, agricultural, commercial, mixed-use)
• Setbacks, height limits, and minimum lot size requirements
• Septic and well rules (and whether soils will support a drainfield)
• Floodplain, wetlands, or stream buffer restrictions that may limit building sites
• Rules for driveways, entrances, and road improvements

Also ask whether rezoning or a special use permit is realistic. The answer often depends on road access, surrounding land uses, and long-range planning goals.

Understand Virginia Land Values and the Market You’re Entering

Inherited land decisions often come down to value: how much the land is worth today, what it could be worth with improvements, and what it costs to hold it.

Recent pricing indicators vary by dataset and methodology, which is why you should treat statewide averages as context—not a final number for your specific parcel. For example, Mossy Oak Properties reports multiple statewide reference points, including a statewide average agricultural land value of approximately $5,850 per acre and a statewide estimate showing agricultural land averaging $5,434 per acre. In the same reporting, Virginia agricultural land sold in 2023 averaged $5,464 per acre, and the number of transactions declined to 1,461 from 2,159.

It’s not just pricing that changed—liquidity did too. Transaction volume for agricultural land of 20 acres or more decreased by 32.2% in 2023, according to Mossy Oak Properties. If your inherited parcel is larger acreage, expect buyer demand, financing timelines, and marketing strategy to matter even more.

Finally, values can move quickly year to year. Farm real estate values increased 10.4% in Virginia from 2023 to 2024, according to Morning Ag Clips. If you’re deciding whether to sell now or hold, this kind of trend data is useful—but you still need parcel-specific comps and a professional valuation.

Get a Professional Appraisal (and Compare It to Real-World Sales)

Hire an accredited land appraiser who understands Virginia rural and transitional land. A strong appraisal considers:

• Recent comparable sales (not just listings)
• Zoning and development potential
• Access, utilities, and frontage
• Timber value, mineral rights, and water features (where applicable)
• Improvements like fencing, barns, trails, or internal roads

Even if you don’t plan to sell immediately, an appraisal supports smarter decisions about insurance, leasing, conservation strategies, or buyouts among heirs.

Review All Applicable Taxes and Carrying Costs

Inherited land can be relatively low-maintenance—or it can become an expensive holding if taxes, insurance, and cleanup issues pile up. Review these categories with a tax professional:

• Income tax basis (“stepped-up basis”): In many cases, your basis becomes the fair market value at the previous owner’s date of death, which can reduce taxable gains if you sell soon after inheritance.
• Property taxes: Confirm the current assessment and whether land-use valuation applies (and what triggers rollback taxes).
• Capital gains tax: If you sell above your basis, the gain may be taxable.
• Estate-related taxes: Large estates may have tax obligations—confirm with the estate attorney or accountant.
• Conservation incentives: Conservation easements may create meaningful tax benefits in the right situation.

Protect Yourself with Title Insurance

Title insurance can be one of the most practical safeguards after inheritance. A policy helps protect you from ownership challenges and defects rooted in past events—such as unknown heirs, recording errors, undisclosed liens, or boundary-related claims.

If you plan to sell, refinance, or develop, title issues can delay or kill a deal. Title insurance helps reduce that risk and can cover legal defense costs if someone disputes your ownership.

Weigh Your Best Options: Sell, Hold, Lease, Conserve, or Develop

Once you understand ownership, zoning, condition, value, and costs, decide how the land fits your goals. The “right” choice depends on your timeline, cash needs, and willingness to manage the property.

Option 1: Sell the Land

Selling converts the inheritance into liquidity. You can list traditionally (agent/broker) or pursue a direct sale if you prefer speed and simplicity. Keep in mind that larger-acreage land can take longer to sell, especially in a slower transaction environment. With transaction volume for 20+ acre agricultural parcels down 32.2% in 2023 per Mossy Oak Properties, pricing and marketing strategy matter.

Option 2: Hold and Use the Land

Holding can make sense if you want long-term appreciation, recreation, family use, or future building options. If your property includes workable acreage, you may be able to generate income without selling.

Leasing is one of the most common “hold” strategies. About 33% of all agricultural acreage in Virginia was leased in 2022, according to Morning Ag Clips (citing Census of Agriculture). If you don’t want to farm yourself, a well-structured lease can keep the land productive while offsetting taxes and maintenance.

Option 3: Trade (Land Swap)

A land swap may help you reposition into a property that better fits your goals—closer to home, easier to access, or more build-ready. Government agencies, conservation organizations, and private owners sometimes pursue exchanges depending on the parcel’s location and attributes.

Option 4: Donate or Grant a Conservation Easement

Conservation tools can protect the land’s character and reduce development pressure, sometimes with meaningful tax advantages. This option is especially relevant if you value privacy, habitat protection, working landscapes, or long-term family legacy planning.

Option 5: Develop the Land (When Zoning and Infrastructure Support It)

Development can unlock the highest value in certain locations, but it also carries the highest risk and upfront cost. Before you pursue this path, validate zoning, road access, utilities, stormwater requirements, and feasibility of septic/well (or public hookups).

Consider Broader Virginia Land Trends That Can Affect Strategy

Some inherited landowners also consider who owns nearby land and how ownership patterns may influence long-term planning and regulation. In 2023, foreign holdings comprised approximately 1.44% of total privately-held agricultural land in Virginia, according to a Virginia General Assembly Report. The same report notes that dispositions of foreign-owned landholdings in Virginia totaled 20,384 acres in 2023 (Virginia General Assembly Report). These data points don’t determine your property’s value directly, but they add context to how agricultural land ownership is tracked and discussed in the state.

It also helps to remember what Virginia farmland supports economically. The agricultural industry in Virginia generates annual farm sales of an estimated $6.1 billion, according to the Fluvanna Review. If your inherited property has agricultural potential, it may be part of a large, active statewide economy—whether you farm, lease, or sell to someone who will.

Assemble a Knowledgeable Team

Inherited land decisions touch probate law, real estate, taxation, natural resources, and local regulation. The right experts can prevent costly mistakes and speed up your path to clarity.

• Real estate attorney: resolves title issues, drafts/reviews contracts, coordinates deeds, and advises on disputes.
• Tax professional (CPA/EA): explains stepped-up basis, capital gains exposure, and planning strategies.
• Surveyor: confirms boundaries and resolves encroachments before they become deal-breakers.
• Forester/forestry consultant: evaluates timber value, stewardship plans, and harvest options.
• Local real estate agent or land broker: prices accurately, markets effectively, and identifies qualified buyers.
• Civil engineer or land-use consultant: assesses development feasibility, permitting, and infrastructure costs.
• Land management company: oversees maintenance, leasing, and ongoing supervision if you live out of state.

If you’re considering a fast, direct sale option, you can also explore services that buy land directly, such as LandBoss.

Final Thoughts

Inheriting land in Virginia is a major life event—and the smartest outcomes come from methodical steps. Verify ownership, inspect the property, confirm zoning, establish value, and understand taxes before you decide whether to sell, lease, conserve, trade, or develop. Virginia land values and market activity can shift quickly—farm real estate values rose 10.4% from 2023 to 2024 per Morning Ag Clips—so informed timing matters.

With the right professionals and a clear plan, inherited land can become a long-term asset instead of an ongoing burden. For more market context, see inherited land in Virginia insights and trends.

Frequently Asked Questions (FAQs)

What taxes will I owe when inheriting land in Virginia?

You may owe capital gains tax if you sell for more than your tax basis (often stepped up to the market value at the date of death). You’ll also owe ongoing property taxes. Estate-related taxes may apply in certain high-value situations—confirm details with a qualified tax professional.

Should I get title insurance when inheriting property?

Yes. Title insurance can protect you from older defects in the title—like undisclosed liens, recording errors, boundary disputes, or ownership claims—by covering eligible losses and legal defense.

How can I determine the market value of inherited land?

Start with a professional appraisal using comparable sales and property-specific factors (zoning, access, utilities, timber, and improvements). Then compare that result to recent local sales and current demand for similar parcels.

Can I lease inherited farmland instead of selling it?

Yes. Leasing is common in Virginia—about 33% of all agricultural acreage in Virginia was leased in 2022, according to Morning Ag Clips (citing Census of Agriculture). A written lease with clear terms can reduce risk and create predictable income.

How long does it take to sell inherited land?

Vacant land sales can take months to years depending on acreage, access, zoning, and price. Larger rural parcels often take longer—especially when market transaction volume slows, as seen in 2023 when Virginia agricultural land transactions dropped to 1,461 from 2,159 per Mossy Oak Properties.