Real Estate Tear Downs / Demolition in Paradise Valley:
When it comes to buying a home, we have to survey the condition and the cost to repair or remodel before making a purchase decision. As a real estate agent, I have the understanding of the feasibility studies with a background of appraising real estate. I understand the angles of the three approaches of value when it comes to appraising. The Income Approach for rentals, the sales comparison approach, and the cost approach. What I understand the most is what how the market sees in a particular property and how much the buyer is willing to pay for it. The common question is, “How much is this property worth? The sales comparison approach is usually the most reliable and is one of the primary aspects for real estate appraisers to form an opinion of value on a particular property.
However, the cost approach is very important also. When you put a home into the equation. The very first question is, “How much does the home cost as new?” What kind of a shape is the home actually in? Then additional questions follow: “What is the physical condition of the home? How functional is the home, or does it meet today’s standards of living?” Then the forms of depreciation comes into place. I won’t go any further with that.
In Paradise Valley, many homes built in the 50′s and 60′s are at the end of its useful life. Why? The floor plans appear inadequate to meet today’s standards. I’ve seen older homes containing low ceilings and could not be corrected, so you deal with incurable functional obsolescence. Let alone, they’re just out of style. Plus, the costs are too much for an older home to keep up with the market of newer homes. Plus, you deal with costs of repairs and other maintenance. Without a doubt in my opinion, in all forms of depreciation in the valuation process, along with the sales comparison (market) approach, incurable functional depreciation is the most critical to determine the final financial making decision in the fate of an old home.
When you look at real estate in Paradise Valley, you see a property you really like because of its location, views, settings, etc, but contains an old home that’s no longer functional and is at its end of its economic useful life. You have the mind set of buying it in terms of the value of the land. Therefore, it’s time to start over and build your own home!
I have several properties for you to look that are considered possible rebuilds. I have the keys to these homes as we work together and see what’s best fit for you. Simply click on the two blue links for homes and land for sale.