Monday, August 01, 2011

Is it Cheaper to Demolish a Home than to Repair it?

A new trend in the home market, is for banks to demolish foreclosed homes instead of reselling them. Banks have found that in some of the least sellable areas of the country, it is actually better for them to demolish a home and donate the land to the local municipality than to fix up the homes and then try to resell them. The companies also have the added bonus of not having to pay taxes or upkeep on the homes that they demolish. It will be interesting to see if this helps the housing market by taking cheap, but undesirable homes off the market, or if it just ends up creating places for people to illegally dump their trash.

1 comment:

Anonymous said...

What a disaster our "feel good" low income policies have led us too.