The spacious yellow colonial, which sits on a hill on a grassy 2-acre property, was the first of two crime scenes in December 2012. Lanza, 20, shot his mother through her forehead in her second-floor bedroom.
Lanza then went to nearby Sandy Hook Elementary School and killed 20 children and six educators before killing himself.
There is no timetable to raze the home, but Mary Ann Jacob, chairman for the Newtown Legislative Council, said a town meeting will be held, which is a formality, and then "the demolition can take place as soon as is practical."
Llodra, whose position is equivalent to town mayor, has suggested the town's legal counsel craft language that ensures any proceeds gained from the land or property be used to benefit the families of victims.
When the home was last appraised in 2012, it was estimated to be worth $523,620.
After the incident, authorities boarded up the front door to the home, where investigators found more than 1,600 rounds of ammunition, at least 10 knives and three samurai swords, among other weapons.
Sandy Hook Elementary School was demolished in 2013 and is being rebuilt, according to the town's website.
Neighbors and townspeople have hoped that the house, a reminder of the second-deadliest mass shooting in U.S. history, be torn down.
"I think it was the right thing to do for the families who live there and have to deal with the curiosity seekers," Jacob said. "I think they should have their neighborhood back."