People tend to start with the kitchen they want. Start with the house you have instead. A pretty remodel on a house with a cracked foundation, rotted roof framing and failing drain pipes is money spent twice. A teardown of a solid house that sits in a great spot on the lot can mean giving up space you'll never get back. Here's how to work through it.
The quick test
Signs that point one way or the other
| Item | Leans renovate | Leans tear down |
|---|---|---|
| Structure and foundation | Solid foundation, straight walls, no major settlement cracks. | Foundation movement, major cracks, or termite and water damage in the framing. |
| Flood zone | The work comes in well under half the building's market value. | The renovation would cross the 50 percent line and force you to bring the house up to current floodplain standards anyway. |
| Systems | Plumbing, wiring and roof have already been updated, or need only part of the work. | Original drain lines, old electrical, a tired roof and no hurricane protection, all at once. |
| Layout | The rooms basically work, and you're updating finishes. | Low ceilings, walls in the wrong places and a floor plan you'd gut anyway. |
| The lot | The house sits in a spot today's setbacks wouldn't allow, and you want to keep it. | The land is worth more than the house, and a new home would use the lot far better. |
One item alone rarely decides it. Three or four pointing the same way usually do.
Flood zones
The 50 percent rule changes the math
What it is
In a flood hazard area, if the cost of improving a building equals or exceeds 50 percent of its market value, it's considered a substantial improvement. The same threshold applies to repairing storm damage.
Why it matters
A substantial improvement generally has to meet current floodplain standards, which often means raising the house. At that point, many owners find that building new costs about the same and gets them a better house.
Who decides
Your city or county floodplain administrator. Ask early, before you pay for plans, and ask whether they count past permits toward the total.
Check before you decide
What you could lose by tearing down
Demolition is permanent, so look at what the existing house has that a new one might not:
Grandfathered setbacks
Older houses often sit closer to the lot line than current zoning allows. You can usually keep that as long as the house stays. Tear it down and the new house generally has to meet today's setbacks.
Size and height limits
Today's rules on lot coverage, floor area or height may let you build less than what's standing now. Check before you assume bigger.
Historic designation
If the house is in a historic district or is designated, demolition may need a separate review or may not be allowed at all.
Trees
Protected trees can limit where a new house goes, and removing them may need a permit.
The middle path
You may not have to choose all or nothing
Partial demolition
Keep the part of the house that's solid, take down the rest and build onto it. It's a common way to hold onto grandfathered setbacks while getting a new house.
Keep the slab
Sometimes the slab and foundation are in good shape and can be reused for the rebuild. It's an engineering call, but it can save real money.
Full interior gut
Strip the house down to the shell and rebuild the inside. You keep the structure and the footprint and start fresh on everything else.
Making the call
How to decide, in order
Get the house inspected
A general inspection, plus a structural engineer if anything looks off. Termites, the roof and the drain lines are the usual surprises in older South Florida homes.
Check the flood zone and the 50 percent math
Find the market value your floodplain administrator will use, then compare it to a realistic renovation budget.
Check zoning
Ask what you could build new on the lot and what the current house has that you'd lose.
Price both paths
A renovation estimate on one side. Demolition plus new construction on the other. Compare what you end up with, not just the number.
Think about the long run
Insurance, energy costs and how long you plan to stay all tip the scale.
Related
Keep reading
Common questions
Frequently asked questions
Is it cheaper to renovate or tear down a house in Florida?
It depends on the house. Renovating is usually cheaper when the structure and foundation are sound and the work stays under the flood zone's 50 percent threshold. Tearing down often wins when the bones are bad, when a renovation would trigger elevating the house anyway, or when the lot is worth more than the house.
What is the 50 percent rule in Florida?
In flood hazard areas, if the cost to improve or repair a building equals or exceeds 50 percent of its market value, it's considered a substantial improvement or substantial damage. The building then generally has to meet current floodplain standards, which often means elevating it. The local floodplain administrator makes the call.
Will I lose my grandfathered setbacks if I tear down my house?
Often, yes. A house that sits closer to the lot line than current zoning allows can usually stay as long as it isn't removed. A new house generally has to meet today's setbacks. Ask your zoning department before you decide, and consider partial demolition if keeping the footprint matters.
Can I keep the slab and rebuild on it?
Sometimes. If the slab and foundation are in good condition and an engineer approves them for the new design, they can be reused. It depends on the condition, the new loads and the flood elevation required.
What's the difference between a teardown and a gut renovation?
A teardown removes the whole structure, usually including the slab, so you start with a clear lot. A gut renovation strips the house to its shell but keeps the structure and footprint.
This article is general information. Floodplain, zoning and historic rules vary by city and county. Confirm with your local building, zoning and floodplain offices before you decide.