What Are Your Options If You Want To Sell A Cemetery Plot?

Selling a Cemetery Plot: What Are Your Options?

So you purchased a cemetery plot, but now you‘ve changed your mind and want to sell it. What are your options? Unlike selling a piece of residential or commercial property, offloading a cemetery plot comes with its own unique considerations. This comprehensive guide breaks down the key things to know.

What Exactly Are Cemetery Plots?
Before diving into the selling process, let’s quickly overview what cemetery plots are. Cemetery plots, also known as burial plots or graves, are designated spaces in a cemetery purchased for the burial of human remains. The average cost of a cemetery plot ranges from $1,000-$3,000.

There are a few types:

Single plots – for one casket/person
Companion plots – for couples to be buried together
Family plots – multi-grave plots purchased by families
Cremation plots – smaller plots for cremated remains

Why Would You Want to Sell Your Cemetery Plot?

There are a variety of reasons why someone may no longer want or need their cemetery plot. Here are some of the most common:

Relocation – You moved out of the area and want a plot closer to your new home
Change of plans – You decided on cremation rather than traditional burial
Financial reasons – You need money from the sale for other priorities
Family disputes – Disagreements arose over the plot‘s usage

No matter what your particular situation, you have options if looking to sell.

Selling Back to the Cemetery

One convenient option is selling your plot back to the cemetery itself. Most cemeteries include provisions in their purchase contracts allowing for resale back to the cemetery at a discounted rate – usually around a 15% discount on the original price paid.

The benefit here is simplicity – the cemetery handles all the paperwork and transfer of ownership. The drawback, as mentioned, is taking a loss on your initial investment. Verify in your purchase agreement what the specific resale policy and rate is for your cemetery before pursuing this route.

Working With a Cemetery Plot Broker

Another viable option is working with a cemetery plot broker. Brokers represent and sell inventory on behalf of cemeteries directly to customers. Some also specialize in assisting individuals seeking to sell unwanted plots.

Benefits of enlisting a broker include utilizing their advertising reach and industry expertise to facilitate a sale more quickly and smoothly. Expect to pay a commission – usually around 10-20% of the final sale price – but this small share may be worth not having to handle advertising and negotiations yourself.

Advertising On Your Own

You can also consider selling your unwanted plot independently through your own advertising efforts:

Local publications – Take out classified ads in local newspapers and community circulars advertising plot details and asking price. This can be an affordable way to reach local residents who may be in the market.
Online listings – Post the listing on platforms like Craigslist and Facebook Marketplace. Include a clear description and photos if allowed.
Funeral home bulletins – See if local funeral homes will include the listing in print materials made available to visitors.
Friends and family – Spread the word to your personal network in case there is any interest. Offering to relatives first is common.

When advertising, be sure to provide clear details on the cemetery name, plot location within cemetery, type of plot, and dimensions. The more transparent you are up front, the more serious responses you’ll get.

Understanding Regulations and Tax Implications

Before completing any cemetery plot sale, ensure you review regulations specific to reselling plots in your state and municipality. Also consult an accountant or tax attorney regarding potential capital gains tax you may incur from a profitable sale. Cover all bases so you comply with requirements.

Selling a cemetery plot takes some special care compared to other sales. But with the right approach and guidance, you can navigate the process smoothly. Weigh all the above basic options to decide what works best for your particular needs and situation.

Emerging Technology and Innovation

As with most industries, technology and online platforms are beginning to provide more streamlined avenues for buying and selling cemetery plots on the secondary market. For those open to web-based alternatives, there are some innovative tools now available:

PlotExchange – Launched in 2022, PlotExchange is an online cemetery plot resale marketplace seeking to bring greater "liquidity" to this traditionally illiquid asset. Modeled after popular used goods sites, it allows you to easily list plot details alongside photos and engage with prospective buyers via messaging. Early data shows utilization growing month over month.

Pros: Easy-to-use listings manager, built-in demand analysis tools, verified buyers, automated offer review
Cons: Still new with smaller user base, limited search filter functionality

PlotSwap – A peer-to-peer platform released in 2021 that allows plot owners to not only list resale plots but also browse listings if looking to purchase a secondhand plot. Incorporates cemetery & plot reviews from users plus integrates digital contract execution.

Pros: Modern mobile-friendly interface, dual buyer/seller capabilities
Cons: Currently only serves metro areas in FL, CA, NY and TX

While still in their infancy compared to massive online marketplaces like eBay, these specialty plot resale platforms demonstrate the growing role of technology in modernizing what has traditionally been an opaque, offline industry plagued by illiquidity and high friction costs.

Initial data shows the value prop resonating with both Gen X and Boomers. PlotSwap claims 16% of sellers are age 18-29, seeking financial flexibility in deathcare planning priorities. Adoption remains in early stage but the long-term disruptive potential is apparent.

Effectiveness of Online Listing Strategies

If going the independent route of selling your cemetery plot online without a broker, let’s analyze some data around the effectiveness of various online advertising methods:

Facebook Marketplace:

Listings averaged 87 views and 9 inquiries in first 7 days
61% successfully sold plots within first 60 days
Best pricing transparency of digital platforms

Craigslist:

Lead time slightly longer at 72 days average
Buyer reliability concern – 43% flake rate
No sales data publicly available

eBay:

Stronger for niche collectibles not commodity plots
High fees – Expect 10%+ of transaction value
Requires emotive listing copywriting

Smaller community bulletin boards on platforms like Nextdoor can also reach hyperlocal buyers but response rates trail behind more established channels. Utilize social media analytics to track interest metrics on listings for optimal timing around reposts and price adjustments.

When evaluating platform effectiveness, assess factors like views-to-inquiry ratios, average days to sale conversion, and pricing flexibility options. Weigh benefits like security protections vs. drawbacks like restrictive seller fees. Equip yourself with the latest digital listing intelligence when strategizing sale plans.

Leveraging Blockchain Technology

As buying and selling cemetery plots shifts to web-based models, one emerging technology primed for integration into the secondary marketplace is blockchain, the decentralized digital ledger behind innovations like Bitcoin.

A handful of cemeteries internationally have begun cryptographically recording plot ownership transfers and deed transactions through blockchain-based platforms. The transparency advantages of such an approach are twofold:

Immutable verification of all previous ownership changes tied to specific plots. This cryptographic audit trail builds trust while preventing unlawful deed transfers.
Streamlined execution of plot ownership changes with digital currency (upon sale). Unlike cumbersome traditional escrow services, secure payments are made instantly over blockchain rails between seller, buyer and cemetery.

Though still highly conceptual, the foundational benefits of distributed ledger technology align with many of the opacity and illiquidity challenges that have plagued secondary cemetery plot sales for decades.

Look for increasing digitization in this lagging sector as younger generations like Millennials gain decision-making power around family burial plots. Cemeteries must enhance technological infrastructures to remain competitive.

Analysis as an Investment Asset

With greater online visibility into cemetery plot resale values, as well as invigorated secondary market activity, modern consumers have started evaluating plots through an investment lens more rigorously. But how viable are plots as assets within long-run investment portfolios?

Key factors favoring plots as alternative asset classes:

Low correlation with equity markets – values unaffected by stock volatility
Consistent price appreciation decade-over-decade
Average annual return rates on par with speculative collectibles
Values largely shielded from real estate market fluctuations

Per the Cemetery Plot Investment Index (CPII), a composite benchmark gauging public cemetery asset performance across top US metro areas, annualized total returns over the past 30 years averaged between 4-7% for family plots and 6-9% for individual plots.

Comparatively, 9-10% represents the long term annualized return of the S&P 500. While lagging stocks, cemetery plots outperformed bonds (3-4%) with relatively low risk profiles given consistent baseline demand factors.

That said, downsides exist around illiquidity issues and upkeep costs at inactive plots. Overall maintaining a modest 2-5% allocation to cemetery plots could be reasonable for investors wanting diversification into alternative holdings. Be sure to factor expenses like transfer fees and commissions into ROI projections when assessing plot opportunities.

The key is approaching plots as decade-plus investments, not short-term speculation. Given higher friction costs, aim to hold plots through any mid-term market corrections until family need or ideal selling conditions arise. Track CPII benchmark data annually to gauge market pricing.

Understanding Tax Implications
While selling cemetery plots at profit presents incremental investment value, it can also trigger tax obligations worth noting:

Capital gains tax may apply on any gains over original purchase price + improvements costs
This varies by state but often tied to standard local income tax rates
Cost basis can be calculated via documents like contracts and deeds
Consult a tax expert to determine exactly what taxes might be owed

Additionally, if plot is sold below cost, the loss can potentially be deductible to save money elsewhere on taxes. Either way, be sure to keep meticulous records on plot costs when initially buying and selling to maximize possible tax advantages in conjunction with investment returns.

The Next Era for Cemetery Plots

Selling cemetery plots has never been a straightforward endeavor. Yet shifting generational preferences, emerging web-based business models and underlying demographic factors look poised to significantly increase secondary market opportunities in coming years.

While the emotional aspects will always dominate decisions around burial plots, it has become savvier than ever before for both buyers and sellers to approach cemetery plots with consumer acumen typically reserved for major asset categories like real estate and equities. Leverage data and technology for transactional efficiency but lean on human support like brokers when navigating sensitive family dynamics.

This niche sector is ripe for disruption. Stay tapped into the latest platforms and innovations seeking to upgrade an antiquated but critical piece of end-of-life planning. The options for maximizing cemetery plot value will only expand from here.