Here Quoth a Realtor/Lawyer from a distant blog:
TUESDAY, OCTOBER 14, 2008
A reader asks, "This post brings up a question that has been nagging me for a while...does it make sense to put money into a now depreciating asset in anticipation of making it more desirable to sell at a later date? What determines whether or not a house is a 'tear down'? "
. . .
What makes a tear down? In happier days, any older house that sat on decent land was quarreled over by builders and first time home buyers alike - picture sea gulls fighting over a fish carcass. Now that the builders are on hiatus there are fewer tear downs and a much better opportunity for young families who can't afford a mansion to move in, maybe add that new kitchen you so wisely avoided, and live happily ever after. Personally, I like that development; I represent a couple of builders, whom I like and admire, but I also live in this town and I'd be glad to see the return of "normal" families.
Another neighbor heard from.