Posted by JMD on May 01, 2005 at 16:48:29:
I’ve sen a similar actual case near me, a waterfront property in FL, sellor had it listed for about a year at $695K no buyers, she tore the house down and relisted at $950K and sold it for $895K
has anyone done demolitions? - Posted by JMD
Posted by JMD on May 01, 2005 at 02:33:07:
Hi, I’m new to this site, it seems very good to me so far.
I have been looking at a possible investment in two adjacent lots. One is a vacant lot, the other has a very small house on it built before 1950. The roof needs repair and IHMO it’s a shack not worth dealing with. It’s an estate sale and the RE agent tells me they have recently reduced the price by $10K. He also thinks the building is a ‘tear down’. So now the asking is fairly close to the tax assessment. In my area RE sales are normally a lot more than the assesed value.
I don’t know what the demolition would cost, I’m thinking about $10K. I think the raw land could be re-sold at a decnt profit in the near term, or I could consider building on the land and selling the new construction, or keeping and renting.
Does anyone have experience in tear down / demolition. I also have questions about rezoning the land use, has anyone done that?
Thanks, Mike
Somethng else to consider… - Posted by Michaela-ATL
Posted by Michaela-ATL on May 02, 2005 at 12:55:18:
If you or a builder can build 2 house next to each other, you usually get some discounts from your subs. What you’re saving may be equal or more than what the demo would cost. If you were to sell this to a builder, they might pay more for each lot, if you have 2 together, than if you were to sell only 1.
Just some food for thought
Michaela
Re: has anyone done demolitions? - Posted by Mary in CA
Posted by Mary in CA on May 02, 2005 at 12:51:58:
I agree with ski . . . check with a contractor re “shack.” You’d be surprised what people will rent. A little soap, water, paint, maybe new carpets and vinyl - you might have a CF gold mine.
What are houses in the neighborhood worth? Is it worth tearing down either for a lot or to build on/ add modular or pre-fab?
Mary
Re: has anyone done demolitions? - Posted by Walt
Posted by Walt on May 02, 2005 at 12:11:46:
Call the local fire department they may be interested in burning it down for pratice.
I had one busned by the fire department and it was a lot less expensive to clean up than having to demo it.
Re: has anyone done demolitions? - Posted by DaveD (WI)
Posted by DaveD (WI) on May 01, 2005 at 12:46:59:
Forget assessments. What the lots are worth (market value) minus the tear down costs is the very most you want to be into this property. So you should start a lot less than that to make it worth your while. If they give you any grief, you then suggest they do the tear-down so they can get the most for the property all to themselves. Trust me, they won’t do the tear down because they want to get money, not spend money to get money.
Re: has anyone done demolitions? - Posted by ski
Posted by ski on May 01, 2005 at 09:25:32:
I personally wouldn’t take the advise of a real estate agent as to if it should be torn down Check with a good GC.
Re: has anyone done demolitions? - Posted by JMD
Posted by JMD on May 02, 2005 at 17:07:36:
I like that approach, good creative thinking 
Mike
Re: has anyone done demolitions? - Posted by JMD
Posted by JMD on May 01, 2005 at 14:28:27:
Tha makes sense, thanks for the resply
Re: has anyone done demolitions? - Posted by Killer Joe
Posted by Killer Joe on May 01, 2005 at 14:44:05:
JMD,
Just to give you that ‘crazy SoCal’ perspective, a friend of mine went through a divorce several years ago and the appraiser valued his home at $630K for split-up purposes, and said without the house the 1.75 acres would be worth $1.3MM. He was looking for the lowest app he could get, so a teardown was not in the cards.
KJ