Hello Maria, Very sensible question. If the dwelling or structure has value, it normally will be considered in the Seller price. Sometimes the dwelling ads no value and is not part of the consideration. And yet other times, the dwelling presents a hazard or issue and needs to be removed - and therefore the cost of doing so needs to be negotiated, if not already accounted for as an offset. Each situation is unique, and will ultimately be determined by the individual circumstances and value and/or potential of the property subject to current market factors. Good Luck! I hope reply was helpful information for you. ~ Warren Kopecky
A tear down verses Vacant land. I haven't heard anyone mention the cost of utility set up on Vacant Land. Usually a teardown has been occupied at one point or another. Just thought I'd mention it. Tear down, demolish, haul away but utilities available. Especially if it's rural land
Intuitively, it’s understood that a tear down adds zero value to a property. You cannot, rationally, add value to vacant land by adding a tear down to it. It just doesn’t make sense. If anything, technically, a tear down literally takes away value. Whoever buys the property will have to take on the added expense of removing said structure.
However, at the end of the day, any property is worth what people are willing to pay to acquire it. A vacant property that is listed for sale right next to another similar property that is also for sale but has a tear down on it might sell for more, less, or even the same price.
Why?
You have to understand that unless the tear down in question is of historical significance, it (the tear down structure) is not what is going to drive the price up. Any real upward movement in the closing price of similar properties (tear down included or vacant) will be determined by other factors that you are maybe not considering.
Here are three:
History. History can add value to a property. A property may be worth more if it has historical significance. A tear down might not deter price in this case.
Location. No two properties are alike. No matter how similar they might be in every way. Even if they are adjacent to each other. They are in unique locations. Being closer to something such as an intersection might make a property more desirable and thus more valuable not because of the tear down but rather in spite of it.
Emotional attachment. When a buyer becomes emotionally attached to a property, that can also drive up the price. The emotional bond to the property will add value that supercedes any negative costs to be incurred by a tear down.
Remember, no two properties are alike. No matter how similar: location, history, emotional attachment and many other factors that motivate buyers are what drives the price of a property.