Over the past decade, the real estate market has seen a huge boom in both homeowners taking on home renovations, as well as new entrepreneurs getting into the house-flipping industry. In either regard, there is another option of not necessarily starting a home remodeling project but rather demolishing the standing structure and constructing an entirely new home.
If the property value is your greatest asset, this can actually be the more financially beneficial strategy. Here, we will look at 5 key reasons you may want to consider a “knockdown and rebuild” strategy of your own, either for your family or a house you’re looking to flip for the real estate market.
1. You could come out financially ahead.
“Knockdown rebuild” projects come with many benefits, but the biggest one is the potential for financial gains. Depending upon the condition of the house itself, the cost estimate for renovations or remodeling can be quite steep. If you’ve properly weighed the value of the property and consulted one or more contractors for the average cost of a home renovation project, you could find that your overall finances may warrant a completely new structure. With the potential for major profits, consider a new house one of your realistic options.
2. You may want to stay in your neighborhood.
In the case that you’re keeping the house, it means that your neighborhood and community may be a big incentive not to move elsewhere. Perhaps where you live is just as important as the house in which you live. If that’s your biggest concern, then it’s still worth considering knocking down the old house and turning a potential renovation project into an entirely new structure.
If the idea of a new home at your current address sounds exciting, look at your home renovation budget and weigh the option. A kitchen renovation may sound like fun, but you could also have the enjoyment of an entirely new kitchen without even moving. Talk with your project manager and ask if this is a feasible option.
3. You love the neighborhood, but not the house.
When it comes to budgeting renovation projects, there’s another possible scenario. Perhaps you’ve already decided to move and found an amazing neighborhood and an affordable house, yet you’re not as crazy about the standing structure itself. With a little research, you can find an experience with a knockdown rebuild series portfolio of their own that can guide you in turning a renovation project into a full construction project.
As long as zoning allows, you can have a demolition crew take care of the old house and start over on the property. However, when looking at such a project plan, be sure that your new neighbors are also okay with the decision. It may help to inform them that your project not only increases the home’s value but the property value for everyone, as well.
4. A new house means customization.
When you’re deciding between a home improvement project or building a brand new home on the rubble, remember that there’s another major benefit to starting from scratch: complete customization of the new house.
Whether you’re looking at a new property or considering something at your existing space, sometimes a home remodels just won’t do. With the right general contractor and a realistic budget, you may be in store for a completely new house with all the floor designs, bathrooms and bedrooms, modernized plumbing, and kitchen of your dreams complete with new appliances and countertops, and never even have to leave. The best way to determine if this is best for you and your family is to research the estimated cost of either option, then decide if your finances will also allow for all the custom work you’ve been desiring for a long time.
5. Becoming energy-efficient has financial benefits.
If a knockdown rebuild project is truly what you’re looking at, then take into account one more amazing benefit for your customization designs: energy efficiency. Homes with “gone green” save a bundle of money on monthly energy bills with a higher home value. Also, your family will leave a smaller carbon footprint. If you’re building a new house on the property, consider appliances that are specifically billed as “energy-efficient,” and perhaps install an HVAC and heating system that runs on less electricity, such as a heat pump. You’ll see savings on your monthly utilities almost immediately.
