We’ve noticed a really unusual real estate trend lately as families look for ways to increase their cash reserves by selling off long-held properties.
They’re not selling vacation cabins or those condos they bought as investments. Frankly, the residential real estate market has not recovered enough for anyone to make decent money doing that.
Instead, some clients are raising quick cash by selling off family burial plots.
A Really Grave Decision
According to a recent article in the Wall Street Journal, “Selling the Family Plot” (http://digg.com/u1DU4w), cemetery and funeral property web sites are reporting a burgeoning marketplace for the sale of burial plots. As the recent economic meltdown got worse, people started liquidating these assets to make ends meet – or simply to make a profit.
For instance: A couple bought a double plot in 1990 for $1,500. Today, a cemetery might sell the same plot for $4,500. If the couple unloads those plots on the secondary market, they could raise as much as $2,800.
That might be enough for cash-strapped families to decide heaven can wait if they can get back money that they can use for bills they need to pay now. This is one possible strategy to consider if your family needs to raise some quick cash.
Many plots have been held by the families for decades and can be sold for a great deal more than was originally paid. The WSJ article said plots sell quickest and cost the most in places where people tend to retire – such as Florida, Arizona, Texas and Southern California.
Some sellers have been known to offer previously occupied plots that are near or next to the resting places of celebrities. The crypt above Marilyn Monroe went up for auction on Aug. 14 and resulted in a final bid of $4.6 million, though the offer, from Japan, was later rescinded.
Existing Tenants
Is it too late to take advantage of this strategy if your family owns a multi-plot property that was partially used? In most instances, you can still move those remains to another single burial location and then be free to sell the larger family plot.
I caution you that that this isn’t as easy as posting a Craiglist ad or putting a “for sale” sign on the plot. You need to check with the cemetery to find out what the rules are.
Most allow owners to sell plots on the secondary market, but sometimes a cemetery will buy it back. Many cemetery operators reported their buybacks increased exponentially over the last year.
Flipping ‘Plot-perties’
On the other hand, now could be a great time for investors to buy burial plots for future sale and profit. With so many plots coming onto the market, sellers may be more willing to negotiate on prices.
Buyers need to ask what’s included in the price. Some properties will include burial costs and headstones. Just because you buy the land, doesn’t mean you won’t have to also buy an underground crypt.
As always, I hope this article has helped you and your family. If you have any concerns or want to talk about a specific case, please contact our office.
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