Should You Renovate or Demolish? A Guide to Making the Right Decision

 

Should you renovate or demolish your existing house? This decision can be tough, especially in a city with such rich history and unique architecture.

Whether you’re a homeowner, contractor, or real estate professional, this guide will help you navigate the complexities of choosing between renovation and demolition.

 

Assessing Your Current Situation

Before you decide to renovate or demolish, it’s important to take a good look at your existing house and understand the local regulations that might affect your plans. In historic neighborhoods, design guidelines can make obtaining a demolition permit extremely difficult or even impossible.

Evaluate the Condition of Your Existing House

The first step in making your decision is to take a hard look at your current home. Here’s what you should consider:

1. Structural integrity: Check the foundation, walls, and roof for any signs of damage or weakness. In New Orleans, where we deal with unique soil conditions and frequent storms, this is especially important.
2. Age and condition of major systems: How old are your plumbing, electrical, and HVAC systems? If they’re outdated or in poor condition, they might need a complete overhaul.
3. Overall wear and tear: Look for signs of aging throughout the house. Are there cracks in the walls? Is the flooring worn out? These could be signs that a major renovation is needed.
4. Historical or sentimental value: Many New Orleans homes have a long history or unique architectural features. Think about whether these aspects are important to you or your neighborhood.
5. Previous renovations: Evaluate any past alterations to the house. Poorly executed renovations can detract from the home’s overall quality, potentially leading to further repairs or even partial demolition.
6. Professional inspection: Consider hiring a home inspector to give you a detailed report on your house’s condition. They might spot issues you’ve overlooked.

For example, if your house was built before 1978, it might contain lead-based paint. According to the EPA, about 87% of homes built before 1940 contain lead-based paint. This could significantly impact your renovation plans and costs.

Check Local Building Codes and Zoning Restrictions

New Orleans has specific rules about construction and demolition, especially in historic neighborhoods. Here’s what you need to know:

• Building codes: These dictate how construction and renovation must be done. They ensure safety and consistency across the city.
• Zoning restrictions: These determine what kind of structures can be built in different areas. For example, you might not be allowed to build a multi-story home in a neighborhood of single-story houses.
• Carriage house: In the context of zoning laws and accessory dwelling units (ADUs), a carriage house can be an attractive option. However, some communities may restrict the construction of such units, while others actively encourage them. It’s essential to understand local regulations before proceeding with building plans.
• Demolition permits: In New Orleans, getting a demolition permit can be extremely difficult, especially in historic districts. You’ll need to check with the Historic District Landmarks Commission (HDLC) if your property is in a historic area.
• Neighborhood design review requirements: Some neighborhoods have additional rules about how homes should look to maintain the area’s character.

Don’t forget to check with your local council or the City of New Orleans website for the most up-to-date information on these regulations.

 

Weighing the Costs and Benefits

Now that you’ve assessed your current situation, it’s time to look at the financial aspects of your decision. If the existing structure is in good condition, remodeling can be a cost-effective option to modernize while preserving the home’s unique character.

Compare the Costs of Renovation vs. Demolition and Rebuilding

Renovation and demolition to completely rebuild each come with their own set of costs. It’s important to evaluate the renovation budget and potential repairs before committing to a project, as unforeseen costs can significantly impact the overall plans. Here’s a breakdown:

Renovation Costs:

• Materials
• Labor
• Permits
• Potential hidden costs (like fixing unforeseen issues)

Proper planning is needed to avoid financial surprises during the renovation project.

Demolition and Rebuilding Costs:

• Demolition expenses
• Debris removal
• New construction costs
• Permits
• Demolition companies can conduct thorough inspections to uncover hidden problems, such as asbestos and structural issues, before renovations begin.

According to HomeAdvisor, the average cost to demolish a house is between $6,000 to $25,000, depending on the size and other factors, while a full home renovation can cost anywhere from $100,000 to $200,000 or more, depending on the scope of the project.

Remember, the cost of materials has been fluctuating in recent years. For instance, lumber prices skyrocketed in 2021 but have since come down. Always get current quotes for an accurate estimate.

Consider the Time and Effort Required for Each Option

Time is money, as they say. Here’s how renovation and demolition compare in terms of time and effort:

Homeowners often face challenges during renovation projects, such as budgeting for unexpected costs.

Renovation:

• Can take weeks to months, depending on the scope
• You might be able to live in part of the house during the process
• Requires careful planning to minimize disruption

Demolition and Rebuilding:

• Usually takes several months to a year
• You’ll need to find alternative housing during the process
• Offers a clean slate, which can be less stressful than working around existing structures

Think about how each option would impact your daily life. Can you handle living in a construction zone for a while? Or would you prefer to move out completely and come back to a brand new house?

 

Evaluating Your Needs and Priorities

Your home should fit your lifestyle, not the other way around. Let’s look at how to align your decision with your needs and priorities. It’s also important to evaluate the impact of your decisions beyond your immediate property lines.

Determine Your Must-Haves and Nice-to-Haves

Make two lists: one for features you absolutely need in your home, and another for things that would be nice to have but aren’t essential. Consider factors like:

• Number of bedrooms and bathrooms
• Open floor plan vs. traditional layout
• Energy efficiency features
• Outdoor space
• Storage options

Then, evaluate how well each option (renovate or demolish and rebuild) would allow you to achieve these goals.

Assess Your Lifestyle and Habits

Think about how you and your family actually use your home. Do you love to entertain? Work from home? Have hobbies that require dedicated space? Your lifestyle should guide your decision.

For instance, if you’re an avid cook who’s always dreamed of a gourmet kitchen, a renovation might be able to give you that without changing the entire house. On the other hand, if you need more fundamental changes – like adding a second story or completely changing the layout – rebuilding might make more sense.

 

Exploring Your Options

Now that you’ve considered your needs and priorities, let’s dive deeper into your options.

When making decisions about demolishing or renovating, it’s important to consider whether the neighborhood is a steady or growing area, as this can significantly impact the financial viability and overall benefit of such actions.

Renovation vs. Knock Down Rebuild

Both renovation and rebuilding have their pros and cons. Let’s break them down:

Renovation Pros:

• Often less expensive than rebuilding
• Can preserve historical or sentimental elements
• May be faster than rebuilding
• Can be done in stages to spread out costs

Renovation Cons:

• Limited by existing structure
• May uncover unexpected issues and costs
• Older homes might have hazardous materials (like asbestos or lead paint)

Rebuilding Pros:

• Allows for a completely custom design
• Can result in a more energy-efficient home
• Everything is new, reducing maintenance costs
• Can often increase property value more than renovation

Rebuilding Cons:

• Usually more expensive upfront
• Takes longer than most renovations
• Requires finding alternative housing during construction
• May face more regulatory hurdles, especially in historic neighborhoods

Alternative Solutions

Don’t forget that renovation and complete rebuilding aren’t your only options. Consider these alternatives:

1. Partial demolition: Keep the parts of your house that work well and rebuild the rest. This can be a good compromise between renovation and full demolition.
2. House remodel: This is more extensive than a simple renovation but less drastic than a rebuild. It might involve changing the layout or adding square footage without demolishing the entire structure.
3. Addition: If you need more space, consider adding on to your existing house instead of starting from scratch.

Each of these options has its own set of pros and cons, so weigh them carefully against your needs and budget.

 

Making a Decision

You’ve gathered all the information – now it’s time to make a choice.

Weigh the Pros and Cons of Each Option

Take everything you’ve learned and make a comprehensive list of pros and cons for each option. Consider factors like:

• Cost
• Time
• Disruption to your life
• Ability to achieve your “must-haves”
• Potential increase in property value
• Environmental impact

Don’t rush this process. Take your time and really think about what each option would mean for you and your family.

Consider Seeking Professional Advice

Sometimes, an outside perspective can be invaluable. Consider consulting with:

• A contractor who has experience with both renovations and new builds
• An architect who can help you visualize the possibilities
• A real estate agent who knows the local market and can advise on potential resale value

While there’s a cost associated with hiring these professionals, their expertise could save you money and headaches in the long run.

 

Final Considerations

Before you make your final decision, there are a few more things to think about.

Think About Resale Value

While your home is first and foremost a place to live, it’s also an investment. Consider how your choice might affect your home’s value:

• In many cases, a new house will have a higher resale value than a renovated older home.
• However, in historic neighborhoods like the French Quarter or Garden District, a carefully renovated historic home might be more valuable than a new build.
• Think about the trends in your neighborhood. Are tear downs happening frequently? Or are renovated homes fetching high prices?

According to Remodeling Magazine’s 2024 Cost vs. Value Report, a major midrange kitchen remodel recoups about 49% of its cost at resale, while a midrange master suite addition recoups about 36%.

Environmental Impact

Don’t forget to consider the environmental implications of your decision:

• Renovation often has a smaller environmental footprint because it reuses existing materials.
• However, a new build can be more energy-efficient in the long run, potentially saving resources over time.
• If you decide to demolish, look into ways to recycle or reuse materials from your old house. Many components can be salvaged and given new life.

 

Conclusion

Deciding whether to renovate or demolish your house is a big decision, especially in a city like New Orleans with its unique architecture and rich history. There’s no one-size-fits-all answer – the right choice depends on your specific situation, needs, and priorities.
Remember to:

• Thoroughly assess your current house
• Understand local regulations
• Consider costs and benefits
• Evaluate your needs and lifestyle
• Explore all your options
• Think about long-term implications like resale value and environmental impact

Whether you decide to renovate your charming New Orleans shotgun house or build a brand new dream home, the most important thing is that you end up with a house that truly feels like home.

If you do decide that demolition is the right choice for you, remember that Caveman Demolition are demolition experts right here in New Orleans. We can handle any demolition project, big or small, with professionalism and care. Don’t hesitate to reach out if you need guidance or assistance with your demolition project.