Wholesaling a House That has to be Moved Off Property

I got a lead the other day from a guy whose mother’s house is in a very prime development area. He’s getting beaucoup of money for his land from some townhome development. But, they told him they would just tear down the house. He has some sentimental attachment (and monetary incentive) to the house, so he is not wanting to see it torn down.

I have an investor that was looking for this exact opportunity, BUT, tells me the house I have is too small. If I don’t know any other investors with this need, should I just pass on the deal all together? Or should I go ahead and put the thing under contract and try to market it? I ultimately don’t want to waste anyone’s time and I am not truly sure how to value the house not having any idea what neighborhood it will be dropped into?

Any suggestions?


Hi Chris,

         Normally when a land owner or developer has a home or building that either must be demolished or moved these parties will generally agree to sell the home or building for a dollar. The reason being that to demo a home or building can cost thousands or tens of thousands of dollars.

Get an exclusive agreement to get the house for a dollar subject to finding a buyer who will move the home. Go out and get estimates to pick up and move the home including the initial cost and cost per mile! Get an estimate of what it will cost to put a new foundation, grading and utilities in place based on size! Get an estimate of what it will cost to remodel the home and bring it up to current codes and generally excepted living standards. Get a budget for a lot of appropriate size to put this home if it were moved!

Take these numbers and add them together, if the total number is higher than a comparable home in your area its not worth doing! However, if these numbers added together and are less than fair market value, then you have a margin to ask $5k for example to sell the house where it sits with your contractors and bids. (What you get is dependant on how involved and specific your package is while still providing the buyer a good deal.)

Just be careful to make sure the current property owner does not try to stick you with the demo and haulage cost’s if you can’t perform!

Good Luck,


Thanks GR, the response is much appreciated.

I wanted to do something, but just seems a bit beyond my experience level/comfort level. That is, without having a buyer for it. If I had a buyer for it, I could do all the things you mentioned above to get a reasonable valuation of the house…but, without having a buyer, I would have no idea of how/where to compare the house.

These are all great tips, though and again I appreciate it. Wished I had a buyer around Houston for something like this. I would love to do one just to get the experience…