What to Do with an Empty City Lot in Tennessee: Sell vs. Hold

Jessica never expected inheriting an empty city lot in Tennessee to feel more like a burden than a blessing.

"At first, I thought it was great," she admitted. "But every time I got a property tax bill or a complaint about overgrown weeds, I felt stressed. Managing land from two states away? It wasn’t as easy as I thought."

Sound familiar?

Owning a vacant city lot comes with big decisions. Should you sell it now for cash or hold onto it for future gains? The answer isn’t always obvious, and it depends on your personal situation, financial goals, and the local market.

Let’s break it all down so you can make the right choice—with zero regrets.

Selling Your Empty Lot: A Fresh Start

For many landowners, selling their vacant lot is the fastest way to eliminate stress and put money in their pocket.

Take Tom, for example. He inherited a vacant lot in Nashville but wasn’t sure what to do with it.

"I kept going back and forth," he said. "But then I realized I was paying taxes on something I wasn’t using. After working with Friendly Land Buyers, I had cash in hand, zero stress, and no more property tax headaches. Best decision ever."

Selling makes sense for several reasons. First, it puts money in your pocket quickly. Tennessee’s real estate market is strong, and your land might be worth more than you think. Second, it eliminates ongoing costs. Property taxes, maintenance, and legal responsibilities add up over time, and selling removes that financial burden. Finally, it simplifies your life. No more worrying about zoning laws, potential liabilities, or finding ways to manage a distant property.

Some people also choose to sell because the timing is right. Urban areas in Tennessee are growing rapidly, making vacant land more valuable than ever. Selling now could help you capitalize on the current demand before market conditions change.

How to Sell Without a Realtor

You don’t have to go through a realtor if you prefer to maximize your profits. First, research recent sales in your area to determine a fair asking price. Next, advertise your property online and in local publications to attract buyers. Be prepared to answer questions about zoning, utilities, and property boundaries. To ensure a smooth transaction, consider working with a title company to handle the paperwork and closing process.

Holding Onto Your Land: A Smart Long-Term Play?

Selling is tempting, but what if your lot is actually a goldmine in the making?

That’s what James thought when he inherited his grandmother’s lot.

"At first, I felt guilty even thinking about selling," he said. "But after looking at the city’s growth trends, I saw its potential. Now, I’m exploring ways to use it in a way that honors my grandmother and increases its value."

Holding onto land can be a strategic move. Many Tennessee cities are expanding, and vacant lots could appreciate significantly over time. If your property is in a developing area, it might be worth much more in a few years than it is today.

Another advantage is flexibility. You might decide to develop the lot yourself, lease it to a business, or use it for personal projects in the future. Unlike rental properties, vacant land doesn’t require much day-to-day management, making it a relatively low-maintenance investment.

That said, keeping the land does come with responsibilities. Property taxes still need to be paid, and some maintenance may be required to avoid fines from the city. There’s also an opportunity cost to consider—holding onto land means tying up money that could potentially be used for other investments.

Creative Ways to Use Your Empty Lot

Not ready to sell but want to make use of your land? There are plenty of creative ways to turn it into something valuable.

Mike, a landowner in Memphis, transformed his vacant lot into a community garden. "It not only beautified the neighborhood but also brought people together," he said. If you’re passionate about giving back to your community, this could be a rewarding option.

Lisa found success by renting out her lot for food truck festivals and pop-up markets. "It generates some income and keeps the property active and maintained," she explained. If your lot is in a good location, it could serve as a temporary event space.

Another idea is planting an urban tree farm. Trees can be harvested or transplanted later, creating a sustainable and potentially profitable use of the land. Some landowners also lease their property to solar energy companies, turning their unused space into a source of passive income.

If zoning laws allow, you might even consider building a tiny home or setting up a short-term rental. With the right approach, an empty lot can become a valuable asset without requiring a full-scale development project.

Common Mistakes Landowners Make

Owning vacant land sounds simple, but many people make costly mistakes.

One of the biggest errors is ignoring property taxes. Even if your land sits untouched, taxes don’t disappear. Over time, unpaid taxes can lead to a tax lien sale, meaning the government could auction off your property to cover what you owe.

Another mistake is assuming the land’s value will automatically increase. While Tennessee’s real estate market is strong, not every lot is in high demand. Location, zoning laws, and market conditions all play a role in determining a property’s worth.

Some landowners also let their property become an eyesore. Overgrown lots can lead to fines and complaints from neighbors or the city. A little maintenance can prevent these issues and help retain the land’s value.

On the flip side, some people rush to sell without doing their research. If you’re considering selling, take time to understand your land’s true worth. Get multiple offers and explore different selling options before making a final decision.

Finally, holding onto land without a plan can lead to missed opportunities. If you’re not selling, have a strategy in place—whether it’s developing the property, leasing it, or finding ways to make it profitable in the meantime.

Need Help Deciding? Let’s Chat.

Owning vacant land shouldn’t be a source of stress. If you’re considering selling but don’t want the hassle of a long, complicated process, we’re here to help make it smooth and straightforward.

• Call us directly at 888-912-3242 for immediate assistance.

• Text us at 888-912-3242 for a quick response.

• Click the chat icon in the bottom right corner to start a conversation now.

Our team specializes in vacant land sales and understands the unique challenges that come with it. Whether you’re dealing with back taxes, title complications, or an inherited property, we’ll walk you through your best options—without pressure or hidden fees.

This is your decision, and we’re here to provide honest guidance so you can make the right choice for you and your family. Take the first step toward peace of mind today.

Disclaimer: This guide provides general information and should not be considered legal advice. Please consult a qualified attorney for specific guidance on your situation.