Another option is growing legs in most cities and Austin is no exception. Tear Downs! Specifically, a buyer purchases a less than perfect home on an amazing lot, they then contract with a builder to remove the home and begin design work on their new residence. Many of the best custom home sites are truly hiding under the homes that simply got there first, several years ago. This is an important trend to consider for both buyers and sellers. For sellers, if they own an older home on an “A” lot, there is wisdom in asking their Realtor to market the property as an amazing home site. A few benefits of doing this that there are no inspections, no repairs, and you can take anything out of the home that you want before closing.
Some readers will try to make financial sense of this concept. The feasibility hinges on the location. In our company, we once removed a home that was valued at $500,000. When the home was gone, the lot sold for $600,000. Our record tear down is 1M. A beautiful, 290-degree waterfront view lot was hiding under a 1970’s frame house. The purchaser never saw the inside of the home before we sent it to house heaven. 3 weeks later we started a large custom residence that today is one of the nicest properties on the lake. Realtors are slowly getting the idea of looking past an existing home to what the site can offer future owners. The cost to remove an existing home will vary by location. In Austin and the surrounding area an approximate range is from 25 to 50 thousand dollars, depending upon the size and construction of the home. These costs are factored into the “land cost” when making an offer to purchase a tear down home.
Finding custom home sites hiding under existing homes is not a new concept. However, in fast growth areas such as Austin it is becoming more common and understood. Realtors and buyers considering a tear down purchase should partner with a professional builder with experience in this type of project. The builder can identify costs, regulatory issues and benefits for a site before the final commitment to purchase is made. The best news is that when all of the squares are filled, everyone in the transaction wins. And, another beautiful home is created on an excellent “recycled” home site.
Austin Builder Hall of Fame
2 Time National Master Builder of the Year
3 Time Austin Business Journal Custom Builder of the Year