Deconstruction donation appraisals – high cost
NFlats
| Posted in General Questions on
Prior to our construction project, we are planning to have deconstruction done on the existing 1950s home that’s 1545 square feet. I got a quote for a “green appraisal” that seems very high just for them to appraise the value of what we would eventually be able to donate from deconstruction.
What are your experiences with these green appraisals for deconstruction? What have you typically paid for them? I’m sure it will vary by market but still helpful to have a benchmark.
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Replies
NFlats,
It pains me to say it but my recent experience is that there are a number of firms and foundations in the world of green building and conservation that charge fees completely unrelated to the economic balancing of costs vs results that apply to the rest of the industry.
I don't know if these high fees are are a necessity (which to me says their business models are unrealistic), or are simply predicated on their clients being wealthy. Either way I would not accept unreasonably high fees because you feel you should.
In my experience that business is basically a scam. There's really not a lot in a typical house that is cost-effective to reuse, especially one that is slated for demolition.
In a couple of recent legal rulings the IRS has taken that position as well. Here's one:
https://esapllc.com/mann-case-2021-second-chance/
DC,
Yes, the unfortunate reality is that what saves the materials is a house being renovated or moved, not deconstructed. There are niche businesses in some regions that salvage certain things - large timbers, flooring, bricks - but in general the only way to keep materials in use is to keep the house occupied.
Down here in DFW, the companies that work on deconstruction have arrangements with Habitat for Humanity ReStore to dispose of usable stuff, which is not much from old houses.
If you feel any of your items have real value sell them and donate the cash everything else is a tax scam.
Almost every thing I saw donated to Habitat for Humanity saw damaged, old stock or ugly custom order items that got canceled almost nothing useable.
Walta
Homebuilders are extremely cost-conscious, if there was value there they'd be capturing it. Around here it's routine after clearing a lot for building a house to scrape off the topsoil and sell it. Yes, they sell the dirt. The fact that they knock down the house and pay to have it hauled away should tell you something.