The Complete Guide to Selling Land By Owner in New Hampshire
"New Hampshire land sellers face unique challenges that don't exist in other states. From the NEW 2024 waterfront septic law to navigating Current Use taxation on forested land, selling by owner here requires local knowledge—not California or Florida advice."
Introduction: The Granite State Advantage
New Hampshire occupies a unique position in the American land market. This small state—just 9,349 square miles—packs extraordinary variety: from the rugged Presidential Range of the White Mountains to the pristine waters of Lake Winnipesaukee, from the Atlantic coastline near Portsmouth to the remote timber forests of the North Country.
But geography isn't what makes NH special for land sellers. It's the state's fierce independence—embodied in the "Live Free or Die" motto—that creates a remarkably seller-friendly environment. New Hampshire has ZERO state income tax and ZERO state capital gains tax. When you sell land here, you keep every dollar of state-level profit (federal capital gains still apply at 15-20% for most sellers).
Add to this the state's mandatory attorney requirement for real estate transactions—which actually protects FSBO sellers by ensuring legal compliance—and you have ideal conditions for selling land by owner. This comprehensive guide will walk you through every aspect of the process, from understanding Current Use taxation to navigating the NEW 2024 waterfront septic law.
Understanding New Hampshire's Land Market Dynamics
New Hampshire's land market defies simple categorization. Unlike states with uniform geography and pricing, NH compresses dramatic variety into a small area. A Seacoast building lot in Durham might sell for $300,000 per acre, while 100 acres of North Country timberland trades at $3,000 per acre. Understanding these regional dynamics is essential for pricing and marketing your property.
The Forest Economy: New Hampshire is 87% forested—the second-highest percentage in the nation after Maine. This isn't accident; it's the result of conscious policy dating back to the 1970s. The Current Use taxation program (RSA 79-A) dramatically reduces property taxes on forestland and farmland, making it economically viable to keep land undeveloped. Over 3 million acres are enrolled in Current Use statewide.
The Recreation Premium: NH's lakes, mountains, and forests drive a vibrant recreation economy. Properties near ski resorts (Loon, Waterville Valley, Cannon), major lakes (Winnipesaukee, Squam, Ossipee), or White Mountain trails command substantial premiums. Buyers pay for access to outdoor lifestyle, not just raw land.
The Boston/Massachusetts Exodus: New Hampshire sits just 50 miles from Boston, creating constant demand from Massachusetts residents seeking lower taxes, more space, and rural character. The I-93 and I-89 corridors see particular pressure. Post-COVID remote work accelerated this trend dramatically—land sales spiked 35% in 2020-2022 as city dwellers sought NH properties.
Seasonal vs. Year-Round Markets: Understand buyer psychology. Lakes Region properties peak in spring/summer when buyers envision boat docks and swimming. Mountain properties sell year-round (skiing vs. hiking seasons). Development land near cities moves consistently. Remote timberland finds buyers in fall during hunting season.
The Current Use Advantage: Your Most Powerful Tax Tool
If you own 10+ acres of forestland or farmland in New Hampshire, Current Use taxation (RSA 79-A) is likely already saving you thousands in annual property taxes. But what happens when you sell? Understanding Current Use's mechanics is absolutely critical—it affects your sales price, your net proceeds, and your buyer pool.
How Current Use Works: Normal property assessment bases taxes on "highest and best use"—what land could sell for if developed. This creates crushing tax bills on rural land near cities. Current Use instead taxes land based on its current use as forest or farm. The result? Property tax reductions of 60-90% for enrolled parcels.
Eligibility Requirements: To enroll, you need minimum acreage—typically 10 acres for forestland (managed under approved plan) or 25 acres for unmanaged natural land. Farmland requires 25 acres plus documented agricultural income. Wetlands qualify at 10 acres. Your town may have higher minimums; check local ordinances.
The Land Use Change Tax: Here's where sales get interesting. When land leaves Current Use—either by sale to a buyer who won't continue enrollment OR by buyer's later development—a 10% "Land Use Change Tax" (LUCT) is owed. This is calculated on the CURRENT fair market value, not the original enrollment value.
Example Calculation: You own 50 acres enrolled in Current Use. You sell for $400,000. If the buyer WON'T continue Current Use (plans to build a home), the LUCT is $40,000 (10% of $400K). The Purchase & Sale Agreement specifies who pays this—seller, buyer, or split. Most often, buyers pay if they're triggering the change. But if you're converting use before sale (subdividing, for instance), you'll owe it.
Marketing Strategy: Emphasize Current Use eligibility in your listing. Buyers who want to keep land forested can continue the program and maintain low property taxes—a major selling point for conservation-minded buyers, small timber operations, or recreational property owners. This expands your buyer pool and can support higher prices.
Consult a NH Forester: Before listing, hire a licensed NH forester ($500-$1,000) to review your Current Use status, assess timber value, and advise on marketing. Timber value can be substantial—mature saw timber might be worth $20K-$50K+ on a 50-acre parcel. Some buyers want the timber; others want to preserve it.
Septic & Well Realities: New Laws You Must Know
NEW 2024 Waterfront Septic Law: Effective September 2024, New Hampshire enacted mandatory septic system evaluation for properties within 250 feet of surface water. This applies to any "shoreland" property—lakes, ponds, rivers, streams, even some wetlands. If your land has an existing septic system and is within this buffer, you MUST get a licensed septic designer to evaluate and certify the system before sale.
Why This Law Exists: NH lakes face severe water quality threats from failing septic systems. The Legislature responded with this requirement to identify problems before property transfers. Expect 3-4 weeks for evaluation and $500-$1,500 in costs. The system must meet current setback requirements (75 feet from water for standard systems, 50 feet for advanced treatment).
What If Your System Fails? If evaluation reveals problems, you have options: (1) repair before sale; (2) reduce sales price and let buyer handle it; (3) escrow funds at closing for repairs. Replacement costs vary wildly—$15K-$50K depending on site conditions, system size, and technology required. Waterfront sites often need expensive advanced treatment systems.
Well Water: The Arsenic Issue: New Hampshire's bedrock geology creates a widespread arsenic problem in private wells. Approximately 20-25% of NH wells exceed the federal standard of 10 parts per billion (ppb) for arsenic. This is natural—granite bedrock releases arsenic into groundwater.
Required Testing: While not legally mandatory for vacant land sales, any buyer getting a mortgage will be required by the lender to test well water. Smart sellers test proactively. A standard water test costs $150-$250 and covers bacteria, arsenic, pH, hardness, and other parameters. Add $100-$150 for radon testing (also common in NH).
What If Arsenic Is High? Arsenic remediation systems (reverse osmosis or specialized filters) cost $1,500-$3,000 installed. Most buyers accept this as a minor issue IF they know about it upfront. Surprises kill deals; disclosure builds trust.
Shared Wells: Many rural NH properties share wells with neighbors—a cost-saving arrangement that creates legal complexity. If your land has a shared well, you MUST have a written well-sharing agreement specifying maintenance responsibilities, cost splits, and access rights. Buyers and lenders require this documentation.
Vacant Land Without Well/Septic: If your land is truly vacant (no structures, no utilities), disclose this clearly. Savvy buyers will get test pits for septic suitability and well yield estimates BEFORE closing. Budget 2-3 weeks for these tests and $500-$1,500 in costs (buyer typically pays, but negotiate).
Regional Market Deep Dive: Where Your Land Sits
New Hampshire's land values depend heavily on location. Here's a deeper look at each region's dynamics, buyer profiles, and pricing realities:
Lakes Region (Belknap, Carroll Counties): Home to Lake Winnipesaukee (NH's largest) and dozens of smaller lakes. Waterfront land commands $100K-$500K+ per acre depending on lake size, road access, and development potential. Back lots (no water frontage but lake access) trade at $10K-$50K per acre. Buyers are 60% out-of-state (Massachusetts, Connecticut), seeking vacation homes. The NEW 2024 septic law hits this region hardest—budget time and money for evaluation.
White Mountains (Grafton, Coos Counties): Stunning scenery, challenging development conditions. Steep slopes, thin soils, and ledge make septic systems expensive. Conservation easements are common—Land and Community Heritage Investment Program (LCHIP) and local land trusts buy development rights. This reduces land value but provides cash and permanent tax reductions. Timber value is real here—mature northern hardwoods fetch premium prices. Expect buyers interested in recreation (hiking, snowmobiling, hunting) rather than development.
Seacoast (Rockingham, Strafford): New Hampshire's most expensive land market. Proximity to Portsmouth (thriving small city), Boston commuter access, and ocean influence drive prices skyward. Even non-buildable lots sell for $50K-$100K. Buildable lots near Portsmouth or Durham command $200K-$400K per acre. Dover, Rochester, and Exeter see intense development pressure. Wetlands are extensive here—buyers will want wetlands delineation ($1,500-$3,000) to verify buildable area.
Monadnock Region (Cheshire, SW Hillsborough): Named for iconic Mount Monadnock, this region balances rural character with Boston accessibility (90-120 minute drive). Towns like Peterborough, Keene, and Jaffrey attract artists, writers, and remote workers. Land prices moderate at $5K-$50K per acre. Strong agricultural heritage—consider marketing to small farmers or homesteaders. Current Use participation is high; emphasize tax benefits to buyers.
Merrimack Valley (Merrimack, Hillsborough): The I-93 corridor from Salem to Concord and Manchester area dominate this region. This is NH's population center—over 400,000 residents. Development land near highways sells for $15K-$80K per acre depending on zoning, utilities, and town. Manchester and Concord's economic growth drives demand. Buyers are local—NH residents looking to build primary residences or small developers seeking subdivision potential.
North Country (Northern Coos): Remote, rugged, and affordable. This is logging country—vast timber operations, paper mills (though declining), and recreational tourism (ATV trails, snowmobiling). Land sells for $1K-$10K per acre, sometimes less. Buyers are savvy locals who understand harsh winters, limited services, and the value of timber harvesting rights. Don't expect quick sales—this market moves slowly, but buyers are serious when they appear.
Legal Requirements & Process: Attorney-Protected FSBO
New Hampshire's mandatory attorney requirement for real estate transactions actually makes FSBO land sales safer and simpler than in most states. Here's how the legal process works:
Why NH Requires Attorneys: Unlike most states where realtors handle closings, New Hampshire law requires licensed attorneys to prepare and review real estate contracts and handle title transfers. This protects both parties from fraud and errors.
Finding the Right Attorney: Choose a real estate attorney experienced in land transactions, not just residential homes. Ask about: Current Use taxation experience, easement negotiations, timber rights, conservation easements, and subdivision. Expect to pay $800-$1,500 for a straightforward land sale, more for complex situations.
The Purchase & Sale Agreement: Once you've agreed on price with a buyer, your attorney drafts the P&S Agreement. This legally binding contract specifies: purchase price, closing date, contingencies (buyer's financing, soil tests, wetlands, survey), who pays Current Use change tax, and what stays with the land (stone walls, timber rights, easements).
Contingency Period: Buyers typically negotiate 30-60 days for due diligence: soil tests, survey, title search, wetlands delineation, and financing approval. During this time, they can back out and get their deposit back if any contingency fails. After contingencies clear, the deal is firm.
Title Insurance: Your attorney orders title search to verify you have clean title and right to sell. Title insurance (cost: typically 0.5% of sales price) protects the buyer from undiscovered defects. The buyer usually pays for owner's title policy, but negotiate.
Transfer Tax Payment: At closing, the $1.50 per $1,000 transfer tax is paid to the NH Department of Revenue. On a $150K sale, that's $225 total. Traditionally split 50/50 between buyer and seller, but it's negotiable. Your attorney handles the paperwork.
Closing Day: Typically held at your attorney's office. You sign the deed, receive payment, and hand over any keys/documents. The buyer's attorney records the deed at the county registry. Current Use change tax (if applicable) is paid at closing. Walk out with a check—no waiting.
Tax Considerations: Keep More of Your Profit
Zero State Capital Gains Tax: New Hampshire has no state income tax and no state capital gains tax. If you bought land for $50K and sell for $200K, that $150K gain is NOT taxed by the state. Compare this to California (13.3% state capital gains tax = $19,950 on this gain) or New York (8.82% = $13,230). You simply keep more money in New Hampshire.
Federal Capital Gains Still Apply: The IRS doesn't care about NH's generosity. Federal long-term capital gains tax (held over 1 year) is 0%, 15%, or 20% depending on your total income. Most land sellers pay 15%. On a $150K gain, that's $22,500 federal tax. Short-term gains (held under 1 year) are taxed as ordinary income at your marginal rate—potentially 22-37%. Hold land at least 1 year before selling if possible.
1031 Exchange Option: If you're selling investment or business land (not personal use), consider a 1031 exchange. This IRS provision lets you defer all federal capital gains tax by reinvesting proceeds in "like-kind" property within strict timeframes. Rules are complex—use a qualified intermediary and consult a tax professional.
Current Use Rollback Implications: If you owe the 10% land use change tax at sale, this is NOT deductible from federal capital gains. It's a separate state land use tax. Budget accordingly—don't be surprised by two tax bills (federal capital gains + NH land use change).
Consult a NH CPA: Before closing, meet with a New Hampshire-licensed CPA who understands land transactions, Current Use, timber sales, and conservation easements. A $300-$500 consultation can save thousands in taxes through proper planning and documentation.
Final Thought: Selling land by owner in New Hampshire is not only possible—it's practical. The mandatory attorney requirement ensures legal compliance, the zero state tax environment maximizes your profits, and the diverse regional markets provide buyer demand at every price point. With proper preparation, local knowledge, and patience, you can successfully navigate NH's unique land market and keep thousands in agent commissions. Live free and sell smart.