Teardown or Fixer Upper?
The simplest way to determine if your house should be repaired or instead torn down and sold for land is to figure out which brings the higher net profit: tearing down the existing structure and selling the lot or repairing the structure and selling the rehabbed house.
The main cost to consider if selling as vacant land is that of demolition. For rehabbing the house, you would need to find out the cost of repairing the house to bring it to at least average condition.
If Vacant land sale price less Demolition costs is more than House Sale Price less Repair Costs, then the house is a tear down.
If Vacant land sale price less Demolition costs is less than House Sale Price less Repair Costs, then the house is a fixer upper.
While this is a good rule of thumb, deciding on the best course of action for your property depends heavily on your individual situation. Tearing down a house or repairing it requires considerable funds, time and other scarce resources. You must decide whether you have those resources available, and if this is where you would like use them.
At ibuybadhouses.com, we buy both teardowns and fixer uppers. We always offer a fair cash price, as well as up to 4 other buying options tailored to your specific real estate situation. To find out more, call 571-482-8737 today. There is no obligation and your information is held in the strictest confidence.
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