Here are a few post I am pasting, somewhat edited, from a forum topic elsewhere. It was easier then making my own response and besides the tax question, cover most the other pertinent issues.Not perfect commentary for the thread but it does guide thinking on the topic.
One of the cost of removing is also re stabilizing the lot with compaction w/or without environmental issues inserted by some agency(whether you think it is important or not.
A well-qualified designer/builder can answer all your questions, help to determine what is most cost effective, and will be cheaper than an architect(sorry ucgal).
Keep in mind a few things:
1) Up to a point, money spent on design is well worth it. A few grand on design can save many thousands in mistakes and poor planning.
2) It is almost impossible to get an accurate estimated budget for a job until it is designed. Per-square foot numbers and ballpark guesses are not accurate, and a significant portion of the budget will be determined by choices made during the design process. Give the designer a figure to work with and let that help shape the design.
Rebuild vs. remodel is a question of cost and whether the existing house has features that you want to preserve or whether it is mainly the lot you want.
I would not count on recycling the lumber in the house. Unless there is something worth saving, like old beams and timbers or beautiful old floors, it is not usually cost effective to re-cycle, and very difficult to predict how much will be salvageable.
Another consideration is preserving any right s you may have with an existing structure…
A lot of houses exist on lots that would be unbuildable today because of Zoning, Wetlands, Septic System design, Coastal Feature setback, you name it, someone is regulating it….
If you come under any of these restrictions, you need some good advice.. there is usually a trigger formula that invokes new regulations.. like if you add 50% to the footprint , you have to bring everything up to code….or if you add a room with 100 sf and a closet, you have to have the septic system re-engineered and rebuilt….or if you tear it down and you’re within the setbacks, you may need a variance to rebuild it …unless of course , they won’t let you rebuild it..
