There is a lot of house building going on in my neighborhood, with developers trying to buy existing homes and knock down-home builders to make room for newer, larger ones. Homeowners are routinely contacted by builders such as New South Homes, asking if they want to sell their homes to them directly. The cost savings that could be gained are significant. If you could write about the advantages and disadvantages of doing so, as well as the potential problems to avoid, that would be fantastic. This would be especially advantageous to older readers, who are more likely to be approached because their homes are often in older, more appealing neighborhoods.
Teardowns are an interesting occurrence.
Teardowns are an interesting occurrence. While some older homes may be restored, today’s buyers want homes that look like the model homes they see in new home complexes or the made-for-TV houses they see on HGTV.
While demolishing a home is more expensive, developers can save money by building a higher-priced home in a well-established neighborhood with a good school district. Nearly all of the older (50+-year-old) houses on larger lots on a street near our home have been purchased by developers, and new houses have been built for three to four times the former homes’ worth.
Typically, the builder will pay one-third of the total purchase price for land, one-third for building and advertising, and the remaining third for benefit. However, if your home is in good condition, builders will normally offer you a lower price than you would otherwise get. There is a trade-off to be made when it comes to investing money to have your house in the type of condition where it will sell quickly.
Consider the following points before selling your home to a developer or builder
You need to understand how much your house is worth right now before selling it to a developer or builder (as a teardown or quasi-teardown). This necessitates a comparative marketing analysis. Invite three real estate agents (from three different companies) to come in and give you an estimate for the cost of marketing your home. When the agents arrive to tour your house, discuss whether any upgrades or changes are worthwhile in order to sell your home faster and for a higher price.
Because of the number of teardowns in your region, the brokers may advise you that unless you renovate your property extensively, you won’t obtain as much money selling it. We also don’t recommend upgrading your kitchen or adding a family room solely to boost your home’s worth. You’ll very certainly spend more money than you’ll ever make from the sale of the property, and managing the rebuilding will drive you nuts.
Conclusion:- Understanding how much teardowns have sold for in your neighborhood and how much older (but “done”) homes have sold for will help you decide if it’s worth repairing your house to sell to somebody who wants to live there vs selling to a developer who wants to take it down.