By tearing down older, functionally obsolete houses whose main value is in the land they’re built on, builders can create up-to-date homes that are either built for specific purchasers or sold on speculation in the regular real estate marketplace.
Why do developers tear down a house?
A teardown is the demolition for replacement of a home or other building that was recently purchased for that purpose. Frequently, the new building is larger than the previous one. Reasons for developers to tear down can include increasing the appeal of the property to prospective buyers or taking advantage of rising property values.
Is tearing down a house a good idea?
Tearing down a house can be cheaper than repairing it to code standards or moving it, but it’s not without its downsides. Talk to a financial advisor who knows real estate to help you weigh the pros and cons and determine what makes the most financial sense. Is the House Worth Tearing Down?
