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Merge land plots or keep separate?
If I bought my neighbors property, can I merge that plot of land with my own? Or is it better to keep it as 2 separate plots? If I tear down the house currently on the property and keep it as open land or land with a pool, would that change the property taxes that I pay?
Asked By Kyle | Manhattan, IL | 1040 views | Buying | Created 3 months ago
Answer(6)
Jason Craig
Coldwell Banker
Whether you can combine two parcels into one or keep them separate is mainly a question for your local government. Many counties will allow you to file a lot line adjustment or a parcel merger so that both lots are treated as one tax parcel. This can simplify ownership, but it also means you have only one legal description to sell later; if you think you might want to sell the parcels separately in the future, keeping them separate gives you flexibility.
Merging the lots does not automatically lower your tax bill. Each county assessor sets value based on land and improvements. If you own two parcels, the assessor is already valuing both pieces of land and the structures on them. A merger simply makes them one account. In some jurisdictions a combined parcel may lose or gain exemptions (for example, a homestead exemption only applies to a primary residence) or could trigger a different tax rate if the newly created parcel no longer qualifies for agricultural or other special assessment. The only way to know the impact is to speak with your county assessor.
Tearing down the existing house will remove that improvement from the tax roll, so your assessment should drop. If you keep the land open or build a pool, your taxes will reflect the value of the land and any new improvements (pools are typically taxed). Using the second lot as a yard, garden or pool does not automatically change the tax classification unless you re‑zone it or qualify for a special agricultural/open‑space designation. Before making any decision, talk with the local planning/zoning department, the tax assessor and a real estate attorney to understand the process, costs and long‑term consequences for your goals.
Merging the lots does not automatically lower your tax bill. Each county assessor sets value based on land and improvements. If you own two parcels, the assessor is already valuing both pieces of land and the structures on them. A merger simply makes them one account. In some jurisdictions a combined parcel may lose or gain exemptions (for example, a homestead exemption only applies to a primary residence) or could trigger a different tax rate if the newly created parcel no longer qualifies for agricultural or other special assessment. The only way to know the impact is to speak with your county assessor.
Tearing down the existing house will remove that improvement from the tax roll, so your assessment should drop. If you keep the land open or build a pool, your taxes will reflect the value of the land and any new improvements (pools are typically taxed). Using the second lot as a yard, garden or pool does not automatically change the tax classification unless you re‑zone it or qualify for a special agricultural/open‑space designation. Before making any decision, talk with the local planning/zoning department, the tax assessor and a real estate attorney to understand the process, costs and long‑term consequences for your goals.
- 2 weeks ago
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Julianne Clark | Your Lowcountry Compass
Charter One Realty
Call or visit your county zoning & assessment departments and ask them these questions. Once the property lines are merged -- can they be divided. How will merging effect your tax bill. The same with the removal of the house. Always best to go directly to the local source. Also, don't forget to ask if there are any fees.
- 3 months ago
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Given Manhattan's more relaxed zoning environment, consolidation could make a lot of sense if you're planning long-term ownership. The tax savings from demolishing the existing structure could be substantial, and you'd have more flexibility for future use.
I'd suggest reaching out to Will County Planning & Zoning first to understand their specific requirements. They're generally pretty helpful with these types of inquiries.
Are you looking at this as a way to expand your current property, or is this more of an investment/development opportunity? The strategy might differ based on your end goals. Hope this helps
I'd suggest reaching out to Will County Planning & Zoning first to understand their specific requirements. They're generally pretty helpful with these types of inquiries.
Are you looking at this as a way to expand your current property, or is this more of an investment/development opportunity? The strategy might differ based on your end goals. Hope this helps
- 3 months ago
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Tatevik Hovhannisyan
RE/MAX Optima
You can usually merge your neighbor’s property with your own by filing a lot line adjustment or parcel merger with your local planning department. Merging can simplify ownership and may help with future development.
Keeping the plots separate might make selling easier later or offer tax benefits, depending on your goals.
If you tear down the house and use the land for something like a pool or open space, your property taxes could change—sometimes lower, sometimes higher—depending on how your county assesses the land and improvements. It’s best to check with your local tax assessor for specifics.
Keeping the plots separate might make selling easier later or offer tax benefits, depending on your goals.
If you tear down the house and use the land for something like a pool or open space, your property taxes could change—sometimes lower, sometimes higher—depending on how your county assesses the land and improvements. It’s best to check with your local tax assessor for specifics.
- 3 months ago
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Todd Bartusek
Berkshire Hathaway Home Services
Great question—and it’s smart to consider the pros and cons before making a move like this. In most areas, you can merge two parcels through your local assessor or planning department, but there are a few things to keep in mind:
Merging the lots could simplify things long-term (one tax bill, easier resale), but it might also limit your ability to sell the second lot separately in the future.
If you demolish the house and leave the land vacant or add something like a pool, your property taxes may decrease or adjust, depending on your local tax rules and zoning.
Some areas have incentives or requirements tied to lot use, so it’s best to check with your county assessor or local zoning office before making any changes.
It’s worth a quick call to your local planner or a real estate attorney to understand how this would impact taxes, resale value, and use. Hope this helps—and good luck with the property!
— Todd Bartusek
Top 1% Omaha Realtor | Berkshire Hathaway HomeServices | All Metro Real Estate Group
Merging the lots could simplify things long-term (one tax bill, easier resale), but it might also limit your ability to sell the second lot separately in the future.
If you demolish the house and leave the land vacant or add something like a pool, your property taxes may decrease or adjust, depending on your local tax rules and zoning.
Some areas have incentives or requirements tied to lot use, so it’s best to check with your county assessor or local zoning office before making any changes.
It’s worth a quick call to your local planner or a real estate attorney to understand how this would impact taxes, resale value, and use. Hope this helps—and good luck with the property!
— Todd Bartusek
Top 1% Omaha Realtor | Berkshire Hathaway HomeServices | All Metro Real Estate Group
- 3 months ago
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Vishal Sharma
Alliance Bay Realty
County would be best place for this answer.
- 3 months ago
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