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Buy, Knock Down, and Build vs. Just Buy: What’s the Best Option in Northern New Jersey’s Tight Housing Market?

Jan. 10, 2025

Buy, Knock Down, and Build vs. Just Buy: What’s the Best Option in Northern New Jersey’s Tight Housing Market? | G&L and Sons Renovations

If you're considering buying, knocking down, and rebuilding a home in New Jersey or just buying and renovating, there's one thing you should know. The northern New Jersey housing market remains highly competitive.

Based on recent data, limited inventory, and high pricing are driving buyers to explore friendly budget options like buying, knocking down, and rebuilding their dream home instead of waiting for one to become available. However, choosing to buy, knockdown, and rebuild in NJ is a big decision that involves carefully evaluating one's budget, timeline expectations, location, and personal preferences since it can be a far more expensive alternative.

In our blog, the G&L and Sons Renovations team has broken down the differences between buying, knocking down, and building vs. just buying to assist you with determining which option best suits your needs. Knowing this information will help you navigate real estate trends in northern NJ and bring you closer to possessing the home you deserve.

How Does the Cost of Knocking Down and Building a New Home Compare to Buying an Existing Home?

So, is it better to buy or rebuild in Montclair, NJ? Well, you need to know that in Northern New Jersey, where land is scarce, it can be costly to knock down and rebuild because you aren’t simply paying for the construction. You’re also paying to demolish an existing home so that you can build a new one based on your vision.

On average, the cost to buy a house can range between $200,000 and more than $500,000, depending on its location, size, and complexity. Then, you need to account for the cost of demolishing and building the home, which ranges between $450,000 and $1.2 million without permitting and other fees added.

On the other hand, if you buy an existing home, you can remodel it at a lower cost than rebuilding a home in northern NJ. Currently, houses in New Jersey cost a median of $550,000, and a remodel of such a home could raise the price by between $50,000 and $300,000, depending on the type of remodel. However, this is typically still cheaper than buying, knocking down, and building a new home.

What Are the Potential Challenges of Building a New Home in Northern NJ?

Is it better to buy a new construction or an existing home? By now, you know this is a common question in people's minds, but the answer isn’t so cut and dry.

However, to help you establish if the demolish and rebuild costs in NJ are worth it, we’ve discussed the challenges of building a new home. So, if you’re considering buying an existing home vs. new construction in NJ, have a look below:

Timeline: The timeline for knock down and rebuild projects is often far lengthier than buying and remodeling an existing home, especially if properties involve or are near wetlands. Fortunately, we have experience getting creative in navigating this potential issue to meet building requirements and regulations.
Land: Since the northern New Jersey housing market is saturated, it leaves little available land for sale. This means homes suitable for a knock down and rebuild in Montclair, NJ, are often priced high because of demand.
Large home approval: In northern NJ, getting approval to build bigger homes on smaller lots can be challenging because of stringent zoning requirements. So, knocking down a home on a smaller lot to build a grand house might not be feasible.
Taxes: New construction homes in Montclair, NJ, and surrounding areas typically face higher tax rates than remodeled homes. The tax assessment on a brand-new property reflects its increased market value, which can be a significant long-term expense.

Renovation vs. New Build: Is It Better to Buy and Knock Down or Rebuild in Northern, NJ?

The decision between home renovation vs. new build in NJ through demolition often comes down to personal priorities.
For example, if you value preserving charm and history, a historic home renovation in Montclair, NJ, can enhance a property’s unique character while making it livable for modern needs.

G&L and Sons Renovations has found that in these instances, renovations can range from cosmetic updates to full-scale remodels that rival the feel of new construction; it all depends on you.

However, if starting fresh is your priority, choosing to knock down and rebuild in Montclair, NJ, can provide the ideal opportunity to design a home tailored to your vision. But, the cost to demolish and rebuild a house and the time required to complete the project may make this less feasible for you.

Are Home Prices Dropping in NJ?

Many prospective buyers wonder, “Are home prices dropping in NJ?” While there has been some fluctuation in certain areas, the overall market remains competitive.

Prices for new construction homes in Montclair, NJ, and other high-demand areas have remained stable due to limited inventory and ongoing demand.

This means you can likely buy an existing home and remodel it without breaking the bank, unlike if you choose to buy, knock down, and build.

Speak With G&L and Sons Renovations About Remodeling Your New Home

In Northern NJ, deciding between a knockdown-and-rebuild or buying and renovating an existing home requires careful consideration of your budget, timeline, and long-term goals.

In our experience, renovations often strike the right balance between customization and cost, especially when demolish-and-rebuild costs are steep. Whether you're renovating a historic Montclair home or remodeling a modern one, we can bring your vision to life.

Our expertise ensures your remodel project stays aligned with your goals and budget, even though the northern New Jersey housing market can be challenging. We’ll help you navigate it with the right strategy for success. Simply contact us here to start the process.