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Accounting for demolition costs

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One immediate cost benefit to a teardown is the fact that all the utilities are already located on the property and connected, which can be a great cost savings, but you still have an old house connected to them. Contact a demolition contractor and get an estimate for the demolition and clearing of the property before you sign on the dotted line.

Demolishing an older home may have additional costs due to the removal of hazardous waste such as asbestos (often located in roofs, ceilings, or siding). Asbestos must be removed by professionals, and the process can be costly.

Before you decide to tear down the existing home, explore the possibility of donating it (or at least parts of it). There are organizations that will actually pick up the house and move it to a new site, making it available for a family in need. Alternatively, charitable organizations and even some businesses will come to the home to salvage cabinets, tubs, doors, windows, flooring, and more. And don’t forget about donating furniture and other equipment. You’ll get a sweet tax write-off. Plus, you’ll get good karma for helping those in need and being good to Mother Earth. A good place to start looking for information is the Habitat for Humanity website at www.habitat.org.

If you do demolish, leaving one or two walls of the old home standing may be cost-effective and worthwhile. Why not tear everything down and start fresh? Because many cities or counties offer a lower property tax rate for a remodel versus new construction. Depending on your community’s rules and regulations, leaving one or two existing walls establishes the project as a remodel and can save you thousands of dollars a year.

Building Your Custom Home For Dummies

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