Sometimes the hardest part of building your dream home isn’t the design or even the construction—it’s figuring out what to do with what’s already standing on your property. Maybe you’ve been living in the same house for years, or perhaps you’ve just bought a property with potential. Either way, you’re facing the question: Should I renovate… or is this house a teardown?
At AV Architects + Builders, we have over 23 years of experience helping homeowners make these crucial decisions. We’re able to assess the condition of existing homes, identifying their potential, and providing expert advice on whether a renovation or a teardown is the best route to take.
Whether you choose to renovate or start fresh, we promise to guide you through every step of the process, ensuring your vision is realized in the most effective and impactful way. Let’s break it down and figure out the best path forward for your dream home.
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What Exactly Is a Teardown House?
A teardown house is a property where the land is worth more than the home itself, and where renovating doesn’t make financial sense. This often applies to older homes—especially those built before 1975, with little to no updates.
If you have to pour hundreds of thousands into renovations just to make the space livable, and those updates won’t significantly raise your home’s value, you’re probably looking at a teardown.
We go deeper into this topic in our article on building a custom home on a teardown lot vs. a vacant land, but here’s the gist: If the bones are too brittle, it’s better to start fresh.
The Teardown Test: Ask Yourself These Questions
Let’s say your home was built in 1970. It still has the original kitchen, original bathrooms, a roof that needs replacing, and drafty windows. It also has no architectural or historical value.
Now ask yourself:
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Has the house been updated? (We’re talking major updates like kitchen remodels, new roof, modern windows—not just paint.)
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Is the land value higher than the house itself?
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Will the cost of renovation exceed the home’s value without the land?
For example, if your property is worth $1.2M, and the land alone is valued at $600K, that means your house itself is only worth around $600K. If renovating the structure would cost you $800K, it’s clear doesn’t take a math genius to see that tearing down and rebuilding gives you better value.
Still unsure? Our guide on whether to renovate or build a new home can help you understand the pros and cons of each option, so you can make a more informed decision before committing.
When Older Isn’t Always Better
Some older homes are considered “historic” and may be protected or valued for their architecture or cultural significance. But most homes built pre-1975—especially those that haven’t been touched in decades—fall into another category: outdated and inefficient.
According to the U.S. Census Bureau, older homes often require more maintenance, consume more energy, and cost more in upkeep. And if they haven’t had any major updates, they’ll feel outdated in both design and function.
So while nostalgia has its charm, the reality is this: Older doesn’t always mean better—especially if you’re planning to modernize your living experience.
But What If the House Is “Still Standing”?
Good question. A lot of homeowners feel hesitant about tearing down a structure that’s technically “livable.” But remember: livable doesn’t mean functional, comfortable, energy-efficient, or customized for you.
At AV Architects + Builders, we’ve had plenty of clients tell us, “We could just fix this or that,” only to realize later that they’d still be stuck with an inefficient layout, low ceilings, or outdated electrical systems.
Before you invest in a full remodel, consider reading our article on the cost of tearing down and demolishing a house. You might be surprised to learn that demolition is more cost-effective than you think.
What Makes a Home Not a Teardown?
Sometimes, even if the home is old, it carries historic or cultural significance that’s worth preserving.
The National Trust for Historic Preservation outlines how some places are important not just for their design, but for the stories and people tied to them. If your home falls into this category, it may make more sense to restore than to rebuild.
That said, most suburban homes built during post-war booms (1950s–1970s) weren’t designed to last forever—and aren’t protected under historic preservation laws.
Real Talk: The Psychology of a Teardown
There’s a certain emotional weight that comes with tearing down a home, especially if you’ve lived there for years or inherited it from family. We get it. You’re not just dealing with walls and windows—you’re dealing with memories.
But here’s the perspective we offer clients: You’re not tearing down the past.
You’re building the future.
And the good news? You don’t have to rush. If you want to stay in your current home while your new custom home is being built, that’s possible—especially if you opt to buy a separate vacant lot.
When It Makes Sense to Tear Down
There are moments when tearing down just… makes sense.
Take this example from Bankrate, where buyers intentionally seek out outdated homes in high-value neighborhoods, knowing they’ll demolish and rebuild. Why? Because the land holds the real value—not the aging structure on top of it.
For savvy homeowners and investors, this approach means getting the exact home you want, in the neighborhood you love, without the constraints of trying to “make it work.”
If you choose a teardown, Second Chance is a great partner for repurposing materials from your old home. They deconstruct buildings, salvage usable materials, and make them available for reuse, helping to reduce waste and support job training in the Baltimore region.
A Teardown Isn’t an Ending
It’s the beginning.
It’s a chance to take the property you already own—or are considering buying—and create something new. Something efficient. Something you. So the next time you look around your outdated kitchen or sagging roof and think, “Is this worth saving?”—know that sometimes the smarter choice is starting fresh.
And when you're ready, we're here to help guide you through the process—whether that’s a teardown, a renovation, or something entirely new. Schedule a discovery call with us today to explore how we can bring your vision to life, or visit our learning center for more resources to help you get started.
