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1 The average cost of demolishing a home or place of business can range anywhere from $5,000 to as much as $30,000. 2  A smaller home under 1,200 square feet can be within the $5,000 to $10,000 range, while a home larger than 2,500 square feet can cost upwards of $22,000 or more. A smaller home under 1,200 square feet can be within the $5,000 to $10,000 range, while a home larger than 2,500 square feet can cost upwards of $22,000 or more. 2  According to the site Trulia.com, the price for demolishing a house can range anywhere from $12,000 to $25,000.
1 If you are planning major changes in your home, then demolition is going to be present on your budget breakdown. 2  Average costs of gutting a house, approximately 1500 square foot in size is $6000 - $7000, with disposal.3  Insulation, at $1 a square foot. 4  Vapor barriers at $0.70 a square foot.nocking Down/Rebuilding Walls. 1  If you are planning major changes in your home, then demolition is going to be present on your budget breakdown. 2  Average costs of gutting a house, approximately 1500 square foot in size is $6000 - $7000, with disposal.