This is why each property is valued on a sq. foot cost. It naturally includes the "depreciation" of the structure and the land cost.
1. empty buildable lot (with zoning restrictions on max # buildable sq. feet)
2. tear down (add demo fees and maybe requirement to retain existing foundation to avoid extra taxes).
3. rehab
4. new construction
Which is normalized by location... rehab may cost more then new construction depending on the location and if it was a flip.
A $1m tear down can become a $2m+ house, or 4-5 $500k condos.
1. empty buildable lot (with zoning restrictions on max # buildable sq. feet) 2. tear down (add demo fees and maybe requirement to retain existing foundation to avoid extra taxes). 3. rehab 4. new construction
Which is normalized by location... rehab may cost more then new construction depending on the location and if it was a flip.
A $1m tear down can become a $2m+ house, or 4-5 $500k condos.