A tool assists individuals in estimating the financial implications of demolishing an existing structure and constructing a new dwelling on the same property. It typically incorporates factors such as demolition costs, new construction expenses (including materials and labor), permit fees, design charges, and potential changes in property value. For instance, a homeowner considering this path could input their property details and desired new home specifications into the tool to receive a projected cost assessment.
Such an estimator is valuable in determining the economic feasibility of redevelopment versus renovation or relocation. It allows for informed decision-making by providing a clearer understanding of the potential investment required, the return on investment, and the overall financial viability of the project. Historically, the increasing demand for housing in established areas, coupled with outdated or inadequate existing structures, has driven the need for such evaluative resources.