"Through the exterior wall and partially through some interior partitions the fire burned right through and the heat and smoke damage is through most of the building."
The 183sq m building has a main hall, two small rooms, a kitchen and bathroom.
The original hall was built in the early 1930s.
It has been valued at $500,000 and is one of the oldest purpose-built Scout halls in Wellington.
Davidson said it could not be demolished because of its District Plan heritage classification and covenant registered on the title.
"You couldn't make it higher or the footprint bigger, which primarily relates to the exterior of the building so any alterations or renovations to outside has to be in keeping with the style and character of the existing building."
Davidson said the council put the hall out for tender because there was no longer a community need for it and it was surplus to requirements.
He said the hall failed to sell last year because no offers were accepted.
Andreas Lepper said he had planned to turn it into a studio but was disheartened by what he saw inside.
"It's all burned and everything kind of needs to be demolished and rebuilt."
Kate Morton said she and her partner saw the property on TradeMe and thought they might be able to turn it into a home.
"Sun-wise it might be a bit too cold for us, but it's a good location, just down the road from the beach and Seatoun is a lovely suburb."
Another woman brought in an expert to view the property and assess its structure but went away with little confidence.
Heritage New Zealand central region manager Clare Craig said it was important the old Scout hall was saved.
"It reminds us that there was a community that really enjoyed their time with this treasured New Zealand institution that was thriving in the heart of this place quite away from the centre of town, so it's a lovely touch to have the building still there."
Craig said it would take a bit of effort to get the building back up to scratch but it would be worth it.
"People usually get an enormous amount of satisfaction out of achieving something like that and being able to pass on a treasure from the past to future generations."