Sometimes it pays to raze a house and build a new one.
Is your house 80 or 100 years old and seriously damaged, but in a location you love? You might be better off knocking it down instead of trying to remodel or buying a house somewhere else.
Tearing down a house is a good idea when:
* The house has rotted beams and antiquated wiring or plumbing.
* The foundation is faulty.
* A renovation that solves all of its problems would be too expensive.
* The house is on a large or attractive lot and you like the location. Sometimes the land alone would be more valuable that the house on the land.
* The house has structural problems and is less valuable than others in the neighborhood.
Tearing down is a bad idea when:
* The house has historical value or features that would be difficult to re-create.
* You can get the updates you want with a modest renovation.
* If you aren’t sure you will stay long enough to justify the effort and expense of a teardown.
If you decide on renovation:
* Never start a renovation yourself if you don’t already possess the skills and time to finish it.
* Never count on an interested party to help you with renovations.
* Plan for at least three to four months in renovation mode for a room.
* For whole house projects, plan to live somewhere else.
* Reserve at least 20 percent over your budget for unexpected problems.
* Leave serious structural issues to a professional.