Land Value Question

[strum456]

If a parcel of land has a cemetery on it, does this affect the value a lot? There are 10 somewhat recent graves on a privately owned cemetery that has not done a lot of business over the years. My neighbor inherited this cemetery and would like to sell it

I am interested in the land and maintenance building, but I am not cut out for the burial business (I don't deal well with death). The cemetery has not done well at all as an investment by its previous owner, so I am looking at using the acreage that does not have graves for farming.

It seems to be extremely rare that a cemetery would be bought or sold. Few people seem to have experience with this. I'd appreciate any guidance.

 

[vabiker23518]

I'm not sure I can adequately answer your questions, but when I was looking for land to buy, I did everything I could to ensure the parcels I looked at didn't have a cemetery. Maybe, like you, I didn't want to deal with it. Also, at least in Virginia, if you discover a cemetery, it is supposed to be reported to the Va Dept of Historic Resources...don't want to be involved with state bureaocity (sp) and what can and can't be done. Just easier not to deal with it!

 

[greasemonkeyok]

Best advice anyone on a tracter forum can give you is contact a PA real estate attorney.

 

[dave1949]

Haven't seen your question here before.

Of course you will consult a lawyer, but the first thing I would want to know is, are there cemetery lots sold that aren't used yet? People often buy burial plots for future use. If there are sold plots, that would make everything a bit more complicated I would think. And only a lawyer would know what sort of conditions persist, by law or by purchase contract, for the land owner's responsibilities to those plot purchasers.

If there are none sold for future use, then you would at least have to allow access to the cemetery I bet, and you may have an obligation for some upkeep of the existing graves.

Be interesting to hear what all you learn if you look into it further.

 

[dmccarty]

There are little family graveyards all over NC. I know of two small family plots that had subdivisions built around them and I am sure there are many, many more. When we were looking at land to buy we saw two properties that had graveyards. In once case, the graveyard really impacted the property so we left passed on that parcel. The other parcel was simply too far away from work to purchase. The graveyard on the last parcel was not big deal. The graves on the first parcel really limited the use of the property and we would have bid much lower as a result. In fact, the graves impacted the parcel so much we just kept looking.

Some people will not want to be near a grave yard. A coworker bought a house in a subdivision that was near a family graveyard and this was a concern for him. In the end, he bought the house and eventually sold it without a problem but that city has been well developed and land is at a premium.

The price of the land depends on what the market will bare. You would need to check with the laws and local regulations to see if the graveyard would impact what you want to do with the property. Would the landowner has to provide access to the graveyard for family visits?

Later,
Dan

 

[vtsnowedin]

It It varies by state of course but here burial lots are sold to the prospective tenants and their heirs etc. Once sold it is their property in perpetuity and you cant' disturb it except for eminent domain takings for public works and even then you have to exhume the remains and rebury them in an equivalent plot. Usually the sale price includes the perpetual care of the lot meaning mowing and fencing. You would have to review the records to see what property rights to those lots have been sold to know where the land stands.

 

[strum456]

Wow, it didn't take long to get some thoughtful responses here. Some good advice was given regarding upkeep, lots sold that aren't filled yet, etc.. I consider the current owner a trusted friend. They have maintained very detailed records regarding the cemetery. There are a few lots sold that are unfilled. I would also be responsible to provide access and upkeep of the grave area. I don't have a problem granting the wishes of a few that have already purchased plots. Mowing around the graves and allowing access to that area is inconvenient but is not a major concern. The current owners have an attorney that I'm confident will make us aware of all the legal responsibilities.

The main question is about the value of something like this. Most people understandably would not want to deal with it and would simply look elsewhere. However, I own property surrounding this cemetery on 3 sides. I have a unique interest that literally no one else would have. My wife is dead set against paying market value for a property with a cemetery on it.

 

[newbury]

< snip>My wife is dead set against paying market value for a property with a cemetery on it.

How dead?

sorry, couldn't resist.

 

[dave1949]

Value is a tough one.

Until you completely understand what future burdens and encumbrances you would be buying, it makes it hard to know what discount to the price you apply for that future loss. For example, the purchased but not filled lots; were they sold with grave opening and closing fees included, and does it become your responsibility to provide that? Or, maybe the current owner puts enough money in escrow to pay for those things as needed and hires/contracts someone to perform the work.

As a starting point, I would put a value of zero on the portion of the property that is or will be cemetery, including enough border space for maintenance and whatever is needed for access from the road. From the remaining acres, starting at market value, I would deduct the anticipated future costs attributable to maintaining the cemetery. That financial burden will likely continue with your land, so if you ever sell it, you will receive less accordingly.

What is it worth to you to have control of a property that is in the midst of yours? To me, that is worth a good bit. Wives don't always think that way. I just bought 12 acres next to ours mostly for the sake of knowing it wouldn't become somebody's weekend beer bash home sitting next to our property line. The wife resisted, but I asked how much it would be worth to prevent that, never mind what the land is worth.

 

[vtsnowedin]

Wow, ,,,,
,,,, The current owners have an attorney that I'm confident will make us aware of all the legal responsibilities.

.

Just make sure that YOUR attorney agrees with him.