A teardown deal is a property that is purchased with the intent to demolish it and build a new structure in its place. In some markets, this is also known as a scrape deal. These opportunities are often found in high-demand areas where new construction provides greater value than renovating the existing home.
Why Investors Target Teardown Deals
Maximize Property Value: Building new construction can significantly increase resale value, especially in appreciating markets.
Outdated or Irreparable Structures: Some homes are too costly to renovate due to structural issues or outdated layouts.
Zoning and Lot Potential: Larger lots or favorable zoning laws can allow for bigger, more profitable builds.
How to Identify Teardown Deals in Privy
Use Investor Activity Search: Look for areas where new construction or scrapes have been completed successfully.
Analyze Comparable Sales: Check for comps where a small, outdated home was replaced with a larger, modern build.
Assess Lot Value vs. Home Value: If the land is worth more than the structure, it may be a good teardown candidate.
Check Zoning and Permits: Some areas restrict new builds or have height and size limitations, so reviewing local regulations is crucial.
How to Search for Teardown Deals in Privy
Log in to Privy and click on the Filters tab at the top of your screen.
Select the MLS Deals & Investor Activity type: Teardown.
Use additional filters to refine your search.
Click the blue Run Search button to generate results that match your Teardown criteria.
Privy's algorithm will identify listings marked as teardowns, scrapes, or redevelopment opportunities. Always check for properties priced near or below land value.
Teardown deals present unique opportunities for investors looking to maximize returns through new construction and redevelopment. Privy’s tools make it easy to find, analyze, and execute these high-potential investment strategies.