Raze or Remodel?

The following is advice I shared with 500+ Windemere real estate brokers at their annual meeting on critical factors for deciding when to remodel a house or demolish it and build new.

There are several considerations to weigh in the decision between razing or remodeling an existing house, from technical and financial to sustainability and design aesthetic. To help with this process, an architect can develop preliminary designs for both a renovation and new construction to determine feasibility and visualize the possibilities.

1. Do existing codes and covenants allow expansion?

Land use codes limit the percentage of a lot that can be developed, put a cap on height, and also dictate minimum setbacks from the property line. An architect can research the restrictions on a property, providing information for making a decision.

2. Would it be less expensive to build new?

Fixing a sub-standard foundation or upgrading a structure for a major renovation can cost more than starting from scratch. Relocating major elements—such as kitchens, bathrooms, and stairs—can also tip the balance toward starting new.

3. Is it greener to remodel or build new?

There is a significant amount of embodied energy in an existing house. Even if a new home is more energy-efficient, it will take decades to overcome the negative carbon impact of new construction.

4. Is the existing house undervalued compared to the neighborhood?

If other homes in your neighborhood are selling for two to three times the value of your home, the economics work in favor of a tear-down.

5. How much of the remodeled home will remain?

If 75% of the existing structure, mechanical systems, and finishes need replacement, it’s probably less expensive and more efficient to build new.

6. Does the existing house have charm that can be enhanced?

The level of detail and craftsmanship of early 20th century homes is expensive to recreate in new construction. If you prefer the feel of older homes, it makes sense to remodel.

7. Is it possible to adjust the layout of an older home so that it allows the flow and openness that match modern lifestyles?

Sometimes something as simple as enlarging an existing opening can transform a home, but some styles (such as split-levels) are going to take a lot of work to overcome the separate levels design.

8. Can the remodel be concentrated in one area?

Building a two-story addition that adds more space on the first floor and a master suite above is more cost-effective than renovating spaces throughout a house.

9. Is the house architecturally significant?

Did a well-known local architect design it? Was it the home of a significant member of the community, or is it a local landmark? A house does not need to have an official designation to make it worth preserving.

10. If you remodel, will it be the house you would have designed for yourself?

Sometimes the design compromises needed due to existing conditions make even a gut remodel less than ideal. Decide what the top priorities are for you and your family and make sure that a remodel will meet those needs.