Demolition, Deconstruction & Site Preparation – Property Pros
Subdivision lots don’t present the challenges that lake lots do. And that’s one more reason that Regency Builders has come to be known as the “Lake Home Builder.” Our team has extensive experience in preparing a site for a build, which often includes the demolition and deconstruction of existing structures on the site.
Because lake land is scarce, these tear down projects are quite common. The Regency Hillcrest is no exception to that rule, and today we will share a piece of that story with you!
Demolition vs. Deconstruction
During many in-fills, the process is just that: tearing down the existing home. At Regency Builders, we go the extra step to “deconstruct” the home – considering what could be reclaimed or repurposed from the existing home. Helping reduce what goes into a landfill, these materials can be used by others for their own projects and offer a tax savings to the property owners.
While there are fees to have the property and its materials assessed for what can be reclaimed, the tax benefit typically far outweighs this investment.
Here is an example of a possible scenario of an existing home with a material salvage donation value appraised at $50,000:
- $2,000 to have the property assessed by IRS qualified appraisers before and after reconstruction
- This fee is tax deductible under professional services up to the 2% maximum
- In most cases, projects fall within the proposed value range, giving the homeowner the most accurate value of their donation
- Qualified appraisers will ensure the homeowner receives full fair market value for their salvaged materials
- Learn more about this process by clicking here
- $5,000 for actual deconstruction
- Total investment: $7,000
- If the homeowner falls in a 40% tax bracket, the final tax savings would be $20,000, leaving a net revenue of $13,000
Deconstruction Advice from Property Pro – our Appraisal Partners
Deconstructing an existing property is a great way to reuse and repurpose materials, but can pose a lot of questions regarding the process. Our friends at Property Pro, the company who managed the appraisal of The Hillcrest property, provided some great insight that may be helpful when deciding on moving forward with a project like this.
Q: Is the appraisal fee tax deductible?
A: Yes. The fee is deductible under professional services up to your 2% maximum.
Q: Do Property Pro’s use an IRS qualified appraiser?
A: Yes. Our company uses IRS qualified appraisers, many with more than 20 years of experience. We have done close to 3,000 appraisals without a single IRS issue.
Q: What percentage of Property Pro’s projects fall within the proposed value range?
A: 100% of our projects fall within the proposed value range, provided all materials listed in the project information form are salvaged. Our goal is to provide you with an accurate value range of your donation.
Q: Have any of your clients been audited by the IRS?
A: Yes. Out of almost 3,000 appraisals, we are aware of a handful of clients that have been audited for various reasons. In all cases, there were no problems with their appraisal or charitable contribution. There have been times we were asked to clarify an entry on an appraisal, which was handled immediately with no further questions.
Q: Why should I trust the value provided in the complimentary consultation?
A: Property Pro’s works closely with and is selective about each nonprofit and deconstruction contractor that we work with. Not all nonprofits and/or deconstruction companies are going to have the same success with their salvage efforts. It is our job to ask the correct questions up front and be satisfied with the scope provided prior to sending out each proposal. This is key to our client’s decision making process and one in which an appraiser’s experience is paramount. Our clients deserve to receive the full fair market value of your materials coupled with a reasonable approach to the appraisal process.
After all items that would be reclaimed from the existing home on the property were carefully removed, it was time for demolition and some additional tree removal. Although tear down of a home looks like a bit of chaos, it needs to be well planned out and thought through to ensure safety of the crew and the surrounding neighbors. Check out this video showing some tree removal and the final pieces of the existing home being demolished.
Other Site Preparations
Other site preparations must be taken before, during, and after demolition to ensure the property is ready to be rebuilt upon. From properly staking and securing a silt fence to preventing debris runoff to clearing trees, we will work to ensure the best elements of the site are preserved for your future enjoyment.
For some homebuilders, large grown trees don’t pose a problem because they merely don’t exist yet on the property. In many of the new subdivision developments, houses are being built on what used to be farm fields. However, as an experienced deconstruction homebuilder, preserving grown trees on the existing property is very important to us, as the builder, and also the homeowner.
When excavating the site for the Hillcrest, our crew took extra steps to ensure trees were not damaged in this process. We added temporary fencing around the trees and mulch around the base to help prevent damage to the root structure, limiting the traffic that got too close to the trees. If we came in contact with tree roots during the excavation process, we didn’t drag the blade over the roots like many builders do. We carefully cut the roots.
About Property Pro’s
Property Pro’s specializes in the appraisal of reusable building materials for charitable donation and whole house salvage (deconstruction projects). They have worked since 1995 as licensed and certified appraisers and amassed almost 3,000 appraisals of reusable building materials without a single IRS issue – a track record unmatched by their competitors. Their investment in training and technology helps our customers greatly reduce their workload and reduce risk.