South Florida investors and builders buy older houses every week with no plan to live in them. The ones who do well treat the purchase as buying a lot and price everything between closing and the first footing. The ones who get burned usually skipped one of the checks below.
Due diligence
What to check before you close
| Item | Why it matters | Where to look |
|---|---|---|
| Zoning | Lot coverage, height, setbacks and the number of units decide what the land is worth to you. | The city's zoning code and a call to the zoning department. |
| Flood zone | A new house has to meet today's flood elevation, which can mean fill, stem walls or a raised floor. | The FEMA flood map and the city's floodplain office. |
| Sewer or septic | Septic means abandonment before demolition and possibly new septic rules for the new house. A sewer connection may have its own fees. | The utility, the county health department and the property records. |
| Trees | Protected trees can limit where the new house goes and add mitigation costs. | A tree survey and the local tree ordinance. |
| Historic status | A designated property or historic district can require extra approval to demolish, or block it. | The city's historic preservation office. |
| Open permits and liens | Open permits, code violations and unsafe structure cases can stall the demolition permit. | A permit and lien search before closing. |
Many of these can be checked in a few days. All of them are cheaper to find before closing than after.
Running the numbers
Costs between closing and construction
Demolition
Get a written quote that includes the slab, pool, driveway, utilities, permit and final grading, not just the house.
Carrying costs
Loan interest, insurance, taxes and lot maintenance while permits and plans get approved.
Surveys and design
A new survey, soil testing if needed, and architectural and engineering fees.
Time
Utility disconnects and permits often take longer than the demolition. Build that into the deal.
Before you demolish
Don't knock it down too early
Have the new permit in sight
An empty lot earns nothing and still needs mowing, fencing and insurance. Demolish close to when construction can start.
Check the tax date
Property is assessed based on its condition on January 1. Talk to your tax advisor about timing.
Keep the paperwork
The closed demolition permit, utility letters and disposal tickets help with financing, the new permit and an eventual sale.
Related
Keep reading
Common questions
Frequently asked questions
What should I check before buying a teardown in Florida?
Zoning and setbacks, the flood zone and required elevation, sewer or septic, protected trees, historic status, and open permits, code liens or unsafe structure cases. Then get a real demolition quote and timeline.
How much does it cost to demolish a house I just bought?
It depends on the house, the slab, any pool or extra structures, access and asbestos. Our house demolition cost guide has reference ranges, but a written quote after a site visit is the number to put in your deal.
Can I get a demolition permit if the house has open permits or code violations?
Open permits and code cases can hold up a demolition permit. A permit and lien search before closing tells you what has to be resolved first.
How long from closing to a clean lot?
Often several weeks to a few months. Utility disconnects, surveys, asbestos paperwork and permit review usually take longer than the demolition itself, which is often done in under a week for a house.
This article is general information, not legal, tax or investment advice. Zoning, flood, tree and historic rules vary by city and county. Do your own due diligence with the right professionals before you buy.