House Demolition Process, Cost And Ways To Save Money

Erin Gobler

8 - Minute Read

PUBLISHED: Feb 4, 2024

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We talk a lot about the cost of building or buying a house, but we don’t talk as often about the cost of demolishing a house. You might be considering doing so if your home needs so many renovations that it’s simply easier just to tear it down and start fresh.

The cost of demolishing a house will depend on the size of the home, where it’s located, the materials used and more. The good news is there are also ways to save a bit of money on your house demolition.

Why A Homeowner Might Conduct A House Demolition

If you’ve never considered a house demolition before, you might be wondering what reasons someone would have for doing so. It turns out there are quite a few reasons someone might decide to demolish a home.

Here are just a few reasons someone might consider demolition:

  • Expensive repairs: You may find that the repairs or renovations you want to do on your home are so expensive that it makes more sense to demolish it and start from scratch. Someone may also decide to do this if they are flipping a house and making major renovations.
  • Safety issues: Another reason someone may decide to demolish a home is if there are major safety issues that can’t easily be resolved with simple renovations. For example, a house might have a faulty foundation, water damage or something else that impacts its structural integrity.
  • Building a custom home: Suppose you recently bought a property, but rather than moving into the existing home, you decide to tear it down so you can build a custom home. Someone might go this route if they find the perfect piece of land but want a custom home rather than the one that’s already there.

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How To Tear Down A House

If you’re preparing to demolish your home or even just considering it, here are the steps to do so safely and efficiently.

1. Contact Your Lender

If you have a mortgage on your home, the first thing you’ll need to do before you demolish your home is to contact your lender. Remember, your home is the collateral for your mortgage, and many home loans explicitly prohibit you from demolishing the home without your lender’s consent. You may get permission to tear down the home if you can repay the mortgage or have other assets you can use as collateral.

2. Determine The Best House Demolition Method

There are multiple methods that can be used to demolish a house, and you’ll have to decide which is best for you. Here are a couple of methods to consider:

Mechanical Demolition

Mechanical demolition is the process of tearing down a home, usually using mechanical equipment. The goal of demolition is simply to take the home down as quickly as possible using tools like excavators, bulldozers and more. You might go this route if your home has significant damage and there’s nothing to be preserved or reused.

Deconstruction

Deconstruction is a more methodical approach to taking down a home. Rather than just tearing the home down, deconstruction involves taking it apart piece by piece, often with the goal of preserving certain parts of the home, either to sell or to use again. You might go this route if you want to be more environmentally friendly or have valuable materials in your home.

3. Have A Professional Inspect The House

Before you start the demolition process, it’s important to have a professional house inspection. The inspector can assess the condition of your home and tell you if there are any issues to be aware of, such as mold, asbestos and more. This information will be important for your contractor when it’s time to start the demolition itself.

4. Hire A Reliable Contractor

Hiring a reliable contractor is a critical step in the demolition process. Start by compiling a list of available contractors in your area from family, friends or online recommendations. You can read online reviews and even ask contractors to provide references from past clients.

When speaking with different contractors, ask about their licensing, their experience with demolition and an estimated quote for the job.

5. Obtain Necessary Permits

In most places, you will need a permit to demolish your home. Depending on where you live, you may get your permit through either your city or county. If you work with a licensed contractor, they will most likely handle the permit process on your behalf. Remember that your permit will be an added cost to your demolition.

6. Disconnect Utilities

A part of safely demolishing a home is disconnecting your utilities, including gas, electrical and water service. Before your scheduled demolition, contact your utility providers to let them know you’ll need your service turned off. Your contractor can give you guidance on when these should be turned off.

7. Ensure The Safety Of Your Neighbors

If you live in a neighborhood or have neighbors nearby, be respectful by giving them advance notice of your demolition. Let them know there will be additional noise, as well as additional traffic from the construction crew. The demolition will likely cause additional dust and, while you can’t avoid that, you can give them a heads-up of when it will happen so they can plan to be indoors during that time.

Best Practices For DIY Demolition Of A House

A DIY demolition is a way of tearing down your home, either in part or in full, without the help of a contractor. Going the DIY route instead of hiring a licensed professional can save you thousands of dollars on your demolition, but it’s a lot more work on your part.

It’s worth noting that in some areas, only a licensed contractor can demolish a house. It’s important to research the laws in your area to ensure you’re legally allowed to do a DIY demolition before you start the process.

If you decide to go through with a DIY demolition, you’ll still need to follow the steps listed above, with the exception of hiring a contractor. However, you’ll also need to follow some additional steps.

Rent A Dumpster

When you start the demolition process, you’ll need a way to dispose of the materials from your home. That’s where a dumpster comes in. Find a dumpster rental you can keep on your property during the demolition and that can easily be hauled away once it’s complete.

Gather Key Tools

To begin your home demolition, you’ll need the right tools. A licensed contractor might use equipment like a bulldozer or excavator. But since you likely won’t have those, you’ll need other tools to use in their place.

Some examples of tools you might need during your DIY demolition include:

  • Sledgehammer
  • Clawhammer
  • Reciprocating saw
  • Crowbar
  • Nail puller
  • Demo fork
  • Prybar
  • Pipe cutter
  • Carpet puller
  • Pliers

In addition to the tools listed above, consider whether there is any heavy machinery you’ll need during the process and whether you can rent it temporarily to get the job done. Keep in mind that you may need a special license or permit to operate one of these pieces of machinery.

Secure Safety Gear

In addition to the tools you’ll need to complete your DIY demolition, you’ll also need safety gear to protect yourself. A demolition can be a dangerous process. You could easily be injured by large materials or falling debris. You could also inhale something or get debris in your ear.

Here are a few pieces of safety gear you should plan to have on hand:

  • Safety glasses
  • Ear protection
  • Work gloves
  • Protective headgear
  • Face shield or mask
  • Protective clothing
  • Work boots

House Demolition Cost

The average cost to demolish a house ranges from $3,000 – $25,000, or $2 – $17 per square foot, according to HomeAdvisor. The total cost will depend on the home’s size and location, permits, equipment, cleanup and other factors. The demolition cost can also increase if mold or other hazardous materials are present in the home that must be removed by a professional.

The table below shows the average cost per square foot to demolish various parts of a house:

 Area  Cost to Demolish
 Dock  $30 – $50 per square foot
 Roof  $4 – $5 per square foot
 Foundation  $1,000 – $5,000
 Attached or Detached Garage  $2 – $6 per square foot
 Chimney  $4,000 – $10,000
 Interior Walls or Ceilings  $1,200 – $5,000
 Basement  $300 – $4,000

Remember that depending on your ultimate goal, your total costs could be considerably higher. For example, many people demolish a home because they plan to build another in its place.

If you plan to build another home on your property, you’ll need to consider the cost of building a house. You may also consider a construction loan that can help with both the demolition of the current house and the construction of the new one.

Ways To Save Money On A House Demolition Project

Demolishing a house can come with a large price tag, and it’s natural to look for ways to save money. And if you’re also planning to build a new house in the same location, you’re probably looking to reduce your costs wherever you can.

Here are a few ways to save money on your house demolition:

  • DIY demolition: The way you can save the most money on your demolition is by going the DIY route. You’ll only be on the hook for the tools you need, as well as your permits, but not for contractor costs.
  • Deconstruct the interior: Even if you can’t DIY the entire demolition – which is likely the case for many people – there are parts you can do yourself. Consider deconstructing the interior of the home yourself and saving only the larger parts for the contractor.
  • Ask for help: If you have friends or family with construction experience or tools that can be useful in a demolition, consider asking them to chip in. While this help may not eliminate the need to hire a contractor, it could help save on labor or rental costs.

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FAQs On House Demolition

Before going through with your home demolition, be sure to read the answers to these frequently asked questions on the topic.

How do I calculate house demolition costs?

You can calculate your house demolition costs by determining the square footage of various parts of your home and comparing that to the average per-square-foot demolition costs. You can also find out your estimated costs by getting a quote from a local contractor.

Is it less expensive to demolish my home or remodel it?

Whether it’s cheaper to demolish your home or remodel it depends on the work that needs to be done. If your home has major structural issues or lacks structural integrity, your house renovation costs may actually exceed your demolition costs. But if your house has good bones and you want to make aesthetic changes, a remodel is probably cheaper.

Do I need a permit to demo a house?

In most cases, you’ll need a permit from your local government to demolish your home. Call your local government or consult with your contractor to find out what’s required of you.

The Bottom Line: A House Demolition Can Be A Practical Investment And Turn A Profit

A house demolition is a major undertaking, but it might be the right choice if your home has major structural problems or if you want to start fresh on your property with a custom build. However, it’s not right for everyone. Depending on what you want in a home, a major renovation might be the better option. If you’re considering renovating your home, apply for a cash-out refinance today to help fund it.

Headshot of Erin Gobler, freelance personal finance expert and writer for Rocket Mortgage

Erin Gobler

Erin Gobler is a freelance personal finance expert and writer who has been publishing content online for nearly a decade. She specializes in financial topics like mortgages, investing, and credit cards. Erin's work has appeared in publications like Fox Business, NextAdvisor, Credit Karma, and more.