Is the House Worth Salvaging?
If you are not sure whether getting rid of the old home is really your best option you can consult with a building professional. In addition some very old homes may be sitting in a historic district and you would be unable to tear the home down. This information is easily obtainable if you contact the building department in the city the home is in.
Next consider the price of the lot the home is on. Some lots in affluent neighborhoods can be worth a load of money, even if there is no home on the lot. In fact, many neighborhoods that become the “new cool place to live” would be excited to get a new home and attract even more buyers.
What to do Before Tearing down the House
Before doing any demolition you will need to get a permit from your local city or county government. It is not advisable to try a home demolition without a permit. The fines you could face would quickly eat away at your budget.
Check with the gas, water and electric companies to make sure all of the utilities are off. Also find out if there are any lines underground that you need to be cautious of. You may have to wait a couple of days for everyone to send a technician out to disconnect and abandon all utility lines and mark underground lines. It may be wise to check with the local fire department as well in case they require notification.
Make sure you are properly equipped to deal with hazards such as asbestos. Many homes erected prior to 1950 have asbestos insulation and floor tiles. Asbestos abatement may cost you an additional $2 to $3 per square foot to remove. Don’t forget about the lead paint in old homes as well.
Estimated Costs of Complete Tear Down
If you are considering a complete tear down but want to leave the foundation or basement of a home that ranges between 800 to 1,500 square feet you can expect to spend between $3,000 and $8,000 dollars. This is for homes located in areas of the United States that are low cost such as in the Midwest. This estimated price includes debris removal. In areas that are more affluent such as in big cities you can expect to spend between $7,000 and $15,000.
Demolishing a home and removing the foundation or basement will cost a bit more. The price ranges from $10,000 to $25,000 and depends on the materials, whether the home is one or two stories, the rates of local contractors for similar work and how easily the home is accessed. Remember the total cost will increase if there is lead paint or asbestos in the home.
If you have a garage that isn’t attached and has outlived its usefulness you can expect to spend between $1,000 up to $10,000 depending on the location and what it is you are tearing down. A porch my cost more than the garage when demolishing because the porch is attached to the home and during demolition care will need to be taken so damage is not done to the rest of the home.
When you tear down something and want to save the materials for use on another project you are deconstructing rather than demolishing. If you deconstruct a home in an affluent state such as California you can easily spend double the cost for deconstruction as you would to demolish. For example a home that would cost $12,000 to demolish will cost about $25,000 to deconstruct. The up side to deconstruction is you could see a considerable tax savings.
Other Costs to Consider
If you are required to get a permit prior to demolition you can expect to pay $25 to $100 for each permit and could go as high as several thousands of dollars. In Chicago, for example, the cost of a permit to demolish an existing home will cost you up to $10,000 for the permit because of their local rules. In addition utility companies may charge for a service call if they have to come out.
Remember when considering whether or not to demolish a home you need to consult with the local government for permits and with the utility companies to abandon all power lines. Demolishing a home can be a great money saver if you have many costly repairs that need done in order to make the dwelling livable once again.