Will Demolition Increase Your Property Value?

excavator demolishing residential structure

Updated September 7, 2023

Under the right circumstances, demolishing structures on your residential or commercial property can increase your property value.

It can be difficult to decide whether or not demolition is the most economical decision, especially when preparing to sell your property.

We'll go over some of the most important questions to consider when deciding whether or not demolition services are right for you.

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Will Demolition Increase My Property Value? infographic

Is the Building in Decent Shape?

If the structure is able to be occupied or is of historical significance and can be redeemed, keeping the structure may be more valuable than removing it.

Investing in renovation could be a significantly better way to increase your property value if it can be resold to another family or renting out to tenants.

If your home has historical significance, you might qualify for special grants or loans that will make renovations and restoration less expensive and more profitable.

When you have a structure that is dilapidated, demolition is almost always the best bet.

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Is the Property Zoned for Commercial Use?

If the property is intended for commercial purposes, then leaving the structure for the buyer to handle will likely have little to no effect on the property's value.

If your property is intended for residential use, then more often than not, demolishing the structure will increase your property's value.

Is the Structure a Liability?

If the structure is in such bad shape that it's a liability, demolishing it will increase the value of your property.

If the structure is physically sound and does not pose an immediate threat, demolition is not the only option.

You could choose to leave it as is and let future buyers handle renovations, or you could invest in renovating it yourself for higher returns on your investment.

There is also an unconventional option that is sometimes available, and that is "donating" your unwanted structure to a local fire department training program. 

Can the Structure Be Used as a Fire Department Training Exercise?

Reach out to your local fire department to inquire if they could benefit from using your structure as a training exercise. Demolition may not be necessary in this case.

Donating your structure to a local fire department has many benefits, like saving money on demolition services, receiving a tax deduction, increasing your property value, and benefitting your local fire department.

With that being said, this is not a fast and simple solution and shouldn't be considered if time is of the essence. There are many different things that you must qualify for in order for this to even be a possible option and getting the proper permits could take time. 

As the property owner, you're still responsible for cutting off all utilities, securing the appropriate permits and surveys, and cleanup after the burn is complete. 

If your structure doesn't qualify or if your local fire department is not interested in burning the structure as part of a training exercise, demolition is the next best option in most cases.

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