In recent years, the issue of unoccupied houses has attracted attention in Japan. As a background to this, there may be many people hesitant to dismantle the house that "I do not know the cost of clearing the land" and "I am anxious about how much can be sold even if I vacate the land" even if they try to sell the house that they no longer live in on the vacant lot. When considering the purchase of real estate, the type of real estate may be land with an old house as the type of advertisement. This means that the value of the building is 0 yen and the price of the land will be sold with the existing building.
How much vacant lot can be sold depends greatly on the economic situation and location conditions, but it is possible to understand the rough amount of "dismantling cost" for vacant lot. Also, knowing the cost of dismantling an old house that will occur in the future is very useful for those who are thinking of selling land with an old house instead of vacant house, or those who are considering the construction of a new building by purchasing the land. Therefore, this time, we will explain about the dismantling procedures and costs of a detached house, how to judge the dismantling, etc.
What should owner do when you want to dismantle a detached house?
Who and what do you consult?
Who should you consult if you want to demolish a detached house? The actual dismantling is done by a professional dismantling company. Rather than inquiring directly to the dismantling company, the safest and smoothest way is to consult with the construction company (architecting company) and the architect (designing company) who took care when designing the house or building the house, consult with the real estate company you are requesting buy or sell the properties (a real estate broker).
How to request?
First of all, it is most important to discuss how to use the land after demolition of the building. If you are trying to build a new house after dismantling, but the land could not be built, the minimum area was not enough, and there are cases where you cannot return later. Therefore, after consulting with the above companies, it is better to have them conduct a field survey locally, present an approximate amount, and obtain a formal estimate before making a decision.
Should the Seller or the Buyer bear the Dismantling Costs?
If the market value of the old house is completely absent and the market value of the vacant lot is judged to be higher, it may be advantageous for the seller to pay the demolition cost. However, in reality, the seller cannot afford this demolition cost, so it's one of the reason why they often sell land with an old house. It is good if the buyer renovates, but if you want to build a new one, the buyer will dismantle after purchasing. In this case, the buyer will bear the dismantling costs. In real estate transactions, there is no uniform rule that which party has to bear the cost of dismantling, so it can be said that the mutual interests are determined at the point of agreement.
How to decide the Dismantling Cost?
◇ Case: How much does it cost to dismantle a 30-tsubo (about 100 m2) detached house?
For example, the market rates for dismantling costs for a detached house with 30 tsubo are as follows.
[In case of Wooden structure]
Unit price per Tsubo: 40,000 to 50,000 yen times 30 tsubo = total amount of 1.2M yen to 1.5M yen
[In case of Lightweight Steel structure]
Unit price per Tsubo: 60,000 to 80,000 yen times 30 tsubo = 1.8M yen to 2.4M yen
◇The dismantling cost depends on the location conditions and time
The actual cost of demolition varies depending on the structure and size of the building and for a variety of reasons. First, there are location requirements. It would be nice if they could use a large-scale machine for dismantling work, but if the road is narrow, they cannot put in the vehicle, so they have to manually dismantle and carry the waste materials. Therefore, the labor cost will be high. Also, in densely populated areas, costs such as curing will be high and dismantling costs will increase.
Second, dismantling time also has a bearing on costs. For example, there may be a construction rush in front of a large-scale event, and at such times, the company doing the dismantling work is also busy and the unit price tends to rise.
Third, if the building to be demolished contains asbestos, or if there are many unnecessary household items, disposal costs will be higher, resulting in higher demolition costs.
What are the criteria for Dismantling/Not Dismantling?
When selling land with an old house, if the price of vacant lot can ask higher on the market, it can be said that it should be dismantled from an economic point of view. Unfortunately, a wooden detached house loses its value after more than 30 years. After more than 40 years, the deterioration of the roof and outer walls will become remarkable, and if it is left untouched, it will become a very old building in 50 years. However, although it is extremely rare, it is difficult to find much economic value but there are houses with high rarity and cultural value, such as “a detached house, which is an early work by an architect who has become a famous now”, and “house decorations such as transom are made with traditional techniques and materials", which are difficult for repeatability. Kyo-machiya house is also similar, and it may be more valuable to renovate than dismantle, such as different construction methods from now, non-rebuildable buildings in the back alleys, styled buildings popular with overseas travelers, future rarity value will improve. Today, renovation makes it possible to create a building that retains the value of an old building while incorporating the convenience of modern times. If you own a high scarcity value building, please consult once.
It is better to dismantle the old house as it is, but if the building disappears, there will be no tax reduction measures and the tax burden will increase. When dismantling a detached house, it is important to examine the costs involved and make a firm decision on "how to use the land after the house dismantled." It is possible to introduce affiliated architects and contractors, so please contact us.
Arrows International Realty Corp.