Scrape-and-Rebuild Basics in Paradise Valley

Thinking about tearing down a dated home and building new in Paradise Valley Village? If you are weighing a major remodel against starting fresh, you are not alone. Many lots in this Phoenix village hold more value than the existing structures. In this guide, you will learn how to judge feasibility, what permits and rules apply, how costs and timelines typically play out, and a practical checklist to move forward with confidence. Let’s dive in.

Scrape-and-rebuild, explained

A scrape-and-rebuild means you demolish an existing home and construct a new one on the same lot. In Paradise Valley Village, you are in the City of Phoenix, not the separate Town of Paradise Valley. That means Phoenix zoning and permitting rules apply. The right project can unlock lot potential, modern floor plans, and higher resale value when done with careful due diligence.

When a teardown makes sense

Common motivations

• Land value is higher than the value of the existing structure and a new build supports stronger resale.
• The current home has functional issues where renovation costs approach new-build costs.
• You want to maximize the lot with a larger footprint, updated systems, and amenities like a pool or guest casita.
• A developer plans to subdivide or add more units where zoning allows.

Early feasibility checks

• Zoning: Confirm your Phoenix zoning district, allowable uses, setbacks, height, and lot coverage. If you plan multiple units or a split, density rules matter.
• Lot attributes: Size, shape, topography, and easements drive buildable area. Many Paradise Valley Village lots are large and regular, which often supports a new build. Narrow or irregular parcels can limit design and economics.
• Neighborhood comps: Study nearby lot sales and recent new builds. Land comps are a key indicator of potential profit or value gain.
• Utilities and site constraints: Verify water and sewer lateral locations, capacity, and any constraints like floodplain or protected trees. These can affect design and cost.

Pro tip: Meet early with a local architect or builder and a neighborhood-focused agent to run a cost-benefit analysis using true comps.

Zoning, permits, and environmental rules

Phoenix administers zoning, demolition, and building permits for Paradise Valley Village. Plan for a thorough review process and start your conversations early.

Zoning and village planning

• Confirm your zoning district to understand permitted uses, setbacks, lot coverage, height limits, and whether subdivision is possible.
• Some streets or subdivisions can have plan overlays or guidance that influence design compatibility and massing.
• Connect with the Paradise Valley Village planner for pre-application input to reduce surprises later.

Demolition and building permits

• Demolition permit: Required for teardown. Expect inspections and proof of safe utility disconnection and abandonment.
• New construction: Submit complete plans for architectural, structural, civil, energy compliance, and any electrical, mechanical, plumbing, grading, and landscaping scopes. Plan review time varies by complexity and completeness.

Codes, grading, and stormwater

• Projects must follow the Arizona residential and building codes adopted by Phoenix.
• Changes to impervious surfaces or drainage patterns trigger civil plans and stormwater requirements. Many lots will need grading and retention solutions.

Licensed contractors and abatement

• Hire Arizona Registrar of Contractors licensed pros for qualifying work. Check license status and claims history.
• Demolition and any asbestos or lead abatement must be performed by properly licensed firms.

Environmental and historic checks

• Asbestos: Common in older homes, especially pre-1980s. Removal is regulated and must follow Arizona Department of Environmental Quality guidance.
• Lead paint: For pre-1978 homes, EPA Renovation, Repair and Painting rules apply to disturbance and abatement.
• Underground tanks or soil issues: Older properties may need environmental assessment and remediation.
• Historic review: Phoenix’s Historic Preservation Office oversees locally designated properties. Some demolitions require review or approval.

Utilities and floodplain

• Verify sewer and water connection points, lateral locations, and capacity with Phoenix utilities. Offsite improvements or relocations are rare but possible.
• Check FEMA flood maps and local floodplain designations. Building in a flood zone adds design and insurance requirements.

HOAs, CC&Rs, and deed restrictions

• Many subdivisions carry HOA rules or private CC&Rs. These can limit demolition timing, exterior design, pools, or site layout and may require separate architectural review. Pull and review early.

Costs and timeline: what to expect

Local costs vary by scope, builder, and finish level. Get multiple bids from licensed contractors and include a 10 to 20 percent contingency for unknowns like soil conditions or plan revisions.

Primary cost components

• Demolition and clearance: Structure removal, abatement of asbestos or lead if present, pool removal or fill, trees, and hauling.
• Site work and utilities: Grading, retaining walls if needed, drainage and retention, utility reconnections or relocations.
• Foundation and structure: Driven by soils, topography, and design. Slab versus deeper footings impact cost.
• Building construction: Custom design, mechanical systems, insulation, windows, finishes, and landscape or pool drive budgets.
• Soft costs: Architecture, engineering, surveys, soils reports, permits and impact fees, plan revisions, builder overhead and profit.
• Carry costs and taxes: Insurance and interest during construction, plus higher assessed value after completion.

Typical timeline

• Pre-design and feasibility: 2 to 8 weeks for zoning checks, comps, surveys, and soils.
• Design: 2 to 6 months from schematic to permit-ready plans, depending on decisions and complexity.
• Plan review and permits: Weeks to months. Simple plans move faster. Custom homes with civil and landscape plans often take longer, especially if revisions are needed.
• Demolition and site prep: Days to weeks, plus time for any required abatement.
• Construction: Often 9 to 18 months for a custom single-family home from groundbreaking to certificate of occupancy.
• Total project duration: Commonly 9 to 24 months or more from the first decision to move-in.

Financing the rebuild

• Construction loans: Usually interest-only during construction, then convert to a mortgage or refinance at completion. Lenders will require plans, a detailed budget, and a builder contract.
• Bridge loans: Useful when you need to buy a lot, fund demolition, or start construction before selling another property.
• Cash or portfolio financing: Favored by some developers or buyers who want speed.
• Property taxes: A new build typically increases assessed value. Check with the Maricopa County Assessor for timing and likely changes.

Paradise Valley Village lot and market fit

Paradise Valley Village has many older mid-century and custom homes on larger lots. That mix makes it a strong candidate area for teardowns and new custom builds. The economics often come down to nearby demand for new product and the price of land relative to existing structures.

• Block compatibility: Oversized or ultra-modern designs may draw neighborhood resistance. Design that respects the street pattern often moves more smoothly and resells better.
• Comps and right-sizing: Ensure your planned size, finish level, and amenities match local comps so you do not overbuild for the area.
• Utilities and drainage: Confirm lateral locations and plan for on-lot retention and grading early to avoid costly redesigns later.

Your step-by-step checklist

1. Confirm ownership, the legal description, and any deed restrictions or HOAs via title and county records.
2. Verify zoning and parcel development standards with the City of Phoenix and the village planner.
3. Order a boundary survey and a geotechnical or soils report.
4. Check FEMA floodplain maps and Phoenix drainage or retention requirements.
5. Inspect for hazardous materials such as asbestos and lead. Consider a Phase I environmental review for redevelopment or subdivision.
6. Engage a local architect to draft a preliminary site plan showing setbacks, lot coverage, parking, and any accessory units.
7. Get preliminary pricing from licensed builders and demolition or abatement contractors.
8. Confirm utility lateral locations, capacity, and any offsite improvement needs with Phoenix Water and other providers.
9. Review neighborhood character and comps with a local agent to right-size your plan.
10. Map out permitting timelines and any needed outreach or historic review.
11. Arrange construction financing or pre-approval if needed.
12. Plan neighbor notices and coordinate access for equipment and material staging.

Avoid these common mistakes

• Skipping CC&Rs or HOA review and finding out too late that design controls limit your plan.
• Underestimating plan review time or submitting incomplete plans.
• Ignoring drainage or retention requirements that force costly redesigns.
• Overbuilding for the block or missing the finish level buyers expect nearby.
• Choosing unlicensed or unqualified contractors for demolition or abatement.
• Failing to budget a contingency for unknowns.

How a local pro adds value

A successful teardown starts with data and relationships. You want early zoning and utility clarity, real comps, and a design path that fits the block and your budget. You also want access to experienced architects, engineers, and builders who work in Paradise Valley Village. Pair that with high-quality listing strategy if you plan to sell the completed home.

Taylor Smart’s approach centers on redevelopment intelligence, premium marketing, and speed. You get help pressure-testing lot value and exit pricing, introductions to the right design and build team, and a plan that aligns with your goals whether you are a homeowner, builder, or investor.

Ready to explore a teardown on your lot or identify a scrape opportunity in Paradise Valley Village? Get your numbers, timeline, and next steps dialed in today. Connect with Unknown Company to Get Your Free Home Valuation and a tailored redevelopment game plan.

FAQs

Do I need a permit to demolish a house in Paradise Valley Village?

• Yes. The City of Phoenix requires a demolition permit, utility disconnection or abandonment, and proper handling of any asbestos or lead.

How long do Phoenix building permits take for a custom rebuild?

• Demolition permits can be relatively quick. Full building permits for custom homes often take weeks to months, depending on plan completeness and project complexity.

Will my property taxes go up after I rebuild?

• Most likely. Rebuilding increases assessed improvements. Contact the Maricopa County Assessor for timing and estimated changes.

Can I build a larger home than the one I remove?

• It depends on your Phoenix zoning district, setbacks, lot coverage, height limits, and drainage or utility constraints. Confirm with zoning staff and your designer.

Do HOA rules apply to teardowns in Paradise Valley Village?

• If your subdivision has an HOA or CC&Rs, they can affect demolition timing, exterior design, and site use. Review and seek approval early.

Are asbestos or lead paint a concern in older Phoenix homes?

• Yes. Older homes may contain asbestos or lead paint. Licensed abatement is required for regulated removal, and inspections are recommended before demolition.

Can I subdivide my lot after a teardown in Paradise Valley Village?

• Possibly. Subdivision must meet Phoenix rules for minimum lot sizes, utilities, and any required public improvements. Coordinate with planning staff early.