Investing on a house for demolition

Alexandoy

VIP Contributor
When I was young my grandmother’s property is a big compound with several houses. When she migrated to the US for good, her son sold the property at a lower price. The reason is the old structures that were due for demolition. It was our ancestral home and I agree that the houses were so old. But the property is situation in the main road so I think it deserves a higher price regardless of the condition of the structures therein. In other words the demolition affects the selling price.

When I joined the real world as a bank employee that’s where I learned that a property for demolition is a liability to the buyer because of the cost of demolition. What if I would buy a property and I will not demolish the house? The engineer in the family said that a condemned building can be saved if you will do a major renovation and probably only the foundation will remain. How about the walls and the concrete beams? It would depend on the condition of the material. My point is the cost of demolition can be saved if you will reconstruct the house.
 

Yugocean

Valued Contributor
From my side, demolition cost is not something to sell a property at lower price; it is always land which should be valued, constructing a new house costs more than demolishing old structure. A build up house is also an important factor, even it is old, because of several antique materials in the building, they have their own value which most of constructer ignore.
 

Briangsam

Active member
If you want better, tear down and rebuild. If you want cheaper, remodel. Even a wide-ranging whole-house remodel will still be cheaper than tearing down and building anew. Even conventional mortgages do not allow you to tear down a mortgaged home because you are destroying the collateral for the loan. But If you have noticed severe problems with your home's structure, or if you've noticed extensive moisture and mold damage in different areas, you might want to completely rebuild instead of simply renovating that portion. However, a home only needs a complete rebuild if it has extensive damage unless you have a completely different plans.
 

Mataracy

VIP Contributor
When I was young my grandmother’s property is a big compound with several houses. When she migrated to the US for good, her son sold the property at a lower price. The reason is the old structures that were due for demolition. It was our ancestral home and I agree that the houses were so old. But the property is situation in the main road so I think it deserves a higher price regardless of the condition of the structures therein. In other words the demolition affects the selling price.

When I joined the real world as a bank employee that’s where I learned that a property for demolition is a liability to the buyer because of the cost of demolition. What if I would buy a property and I will not demolish the house? The engineer in the family said that a condemned building can be saved if you will do a major renovation and probably only the foundation will remain. How about the walls and the concrete beams? It would depend on the condition of the material. My point is the cost of demolition can be saved if you will reconstruct the house.
The reverse is the case in my own country. The only value the land again since you wanted to sell the house must valuer will only value the land and a little price for the building since it may not be a buyer taste.
Sometime when you want to sell property the value will come if the building is close to the road that means that it will be sold at higher price. In fack have seen some people that bought building for just 5years back at the rate of #5million and latter sold it at the rate of #11million .selling of old building in a good location is very lucrative and profitable.
 

Chibson

VIP Contributor
Of course nobody wanna invest in the house that is about to be demolished or that is due for demolition. Such situations always affect prices because the buyer is also risking his money to buy a house that is due for demolition. It is therefore advisable to make a lot of research before we make investments. The location of the property or house is also another determining factor in the price.
 

Samuel72

Verified member
People actually sell property because they don't have use for the property or because they have a better place, but properties are not meant to be sold anyhow, if the structure is old you can renovate it. You selling the property in a low price is somehow a waste because even if you don't have use for the property your children might grow up tomorrow and they might have good idea to use the property
 

Sammyesx

Active member
It will all depend on the value of the house, location and also the structure of the house. Renovating also incure a reasonable amount of expenses which depending on the structure of the house can be equal to or more than cost of demolition. Negotiation power also has a role to play in such situation,
 
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