It is one of the hardest conversations we have with sellers. You raised a family in that house. You know every creak in the floor. And the most likely buyer is going to knock it down the week after closing.
It helps to see it for what it is: a compliment to the land. Big lots, mature trees and good streets are exactly why builders and families want to be here. Selling a lot-value house well means understanding what those buyers are paying for, and giving them what they need to say yes.
01
How to tell if the value is in the lot
The Dallas Central Appraisal District values a home by adding the value of the land to the depreciated cost of the improvements.1 Look up your property on DCAD’s site and compare the two. When the land accounts for most of the total, and the recent sales on your street are new construction or houses that were torn down soon after they sold, you are probably in lot-value territory.
Appraisal district numbers are a starting point, not a price. The real test is what builders and buyers have actually paid for comparable lots near you, and that comes from recent sales, which we pull for every seller.
02
What the buyer checks first
A builder looks at your lot the way you would look at a floor plan. The first question is what the city will let them build.
Zoning. Most Northwest Dallas homes sit in single-family districts with minimum lot sizes, setbacks, height limits and lot coverage limits. The City of Dallas summarizes them this way:2
| R-7.5(A) | 7,500 sq ft minimum lot; 25 ft front setback; 30 ft height; 45% coverage |
|---|---|
| R-10(A) | 10,000 sq ft; 30 ft front; 30 ft height; 45% coverage |
| R-13(A) | 13,000 sq ft; 30 ft front; 30 ft height; 40% coverage |
| R-16(A) | 16,000 sq ft; 35 ft front; 30 ft height; 40% coverage |
| R-1/2ac(A) | 21,780 sq ft; 40 ft front; 36 ft height; 40% coverage |
| R-1ac(A) | 43,560 sq ft; 40 ft front; 36 ft height; 40% coverage |
Overlays. Some neighborhoods add their own rules on top. A Neighborhood Stabilization Overlay can set neighborhood-specific front and side setbacks, garage placement and a height limit, to keep new homes in scale with the street.3 A conservation district, like Greenway Parks, requires review before demolition and new construction.4 A historic overlay requires a certificate from the Landmark Commission before a structure can be demolished.5 If your lot is in any of these, a builder needs to know on day one, and so do you, because it changes what the lot is worth to them.
Trees. The mature trees that make a street beautiful also come with rules. Dallas requires a tree survey identifying protected trees within 50 feet of a demolition,6 and once a demolition permit is filed the lot is treated as vacant for tree protection, so removing protected trees can trigger replacement or mitigation.7 A builder will price that in.
Demolition. The city’s demolition permit checklist includes an asbestos survey, proof of a solid waste contract and notice to the utility companies.6 That is the buyer’s job, but it is part of their cost and their timeline.
03
What still applies to you
Selling to a builder doesn’t get you out of the seller’s disclosure. Texas law exempts a sale from the disclosure requirement only in specific situations. For a teardown, the relevant one is narrow: it applies only when the value of the dwelling is no more than five percent of the value of the property.8 In most cases, plan on filling out the notice. Our guide to the seller’s disclosure notice explains it.
04
Two buyers, one listing
Here is where strategy matters. A lot-value house has two audiences, and you want both at the table.
Builders want the facts fast: lot dimensions, a survey, zoning, any overlay, the tree situation and a price that works with their numbers. Give it to them in one packet, and they can make a decision in days.
Families may want to live in the house for a few years, renovate it, or build their own home on the lot. They can sometimes pay more than a builder, because they aren’t building for a profit, but they need to see what the lot could become.
Marketing only to one of them leaves money on the table. We put both stories in front of both audiences.
You aren’t selling a house that needs work. You are selling a lot that comes with a house.
05
Don’t renovate a teardown
It sounds obvious, but we see it every year. A seller spends real money on paint, flooring and fixtures for a house the buyer is going to bulldoze. Clean it, make it safe to show, and stop there. Spend your money on a current survey instead. If you are not sure which kind of house you have, read should I renovate before I sell? and then call us.
For more on the area, see our guides to living in Northwest Dallas and 75229.
Everything we have written for sellers is on one page: Selling a home in Dallas →