Should you remodel the house or tear it down?

Sometimes it pays to raze a house and build a new one.

Is your house 80 or 100 years old and seriously damaged, but in a location you love? You might be better off knocking it down instead of trying to remodel or buying a house somewhere else.

Tearing down a house is a good idea when:

• The house has rotted beams and antiquated wiring or plumbing.
• The foundation is faulty.
• A renovation that solves all of its problems would be too expensive.
• The house is on a large or attractive lot, and you like the location. Sometimes the land alone would be more valuable than the house on the land.
• The house has structural problems and is less valuable than others in the neighborhood.

Tearing down is a bad idea when:

• The house has historical value or features that would be difficult to re-create.
• You can get the updates you want with a modest renovation.
• If you aren’t sure, you will stay long enough to justify the effort and expense of a teardown.

If you decide on the renovation:

• Never start a renovation yourself if you don’t already possess the skills and time to finish it.
• Never count on an interested party to help you with renovations.
• Plan for at least three to four months in renovation mode for a room.
• For whole house projects, plan to live somewhere else.
• Reserve at least 20 percent over your budget for unexpected problems.
• Leave serious structural issues to a professional.