We are looking to purchase an old home from the 50's in the Zilker area in Austin to tear it down and rebuild 2-3 homes on this large lot. My question is, in calculating comps what do I use for the comparables?  Normally I know that I would use similar homes recently sold.  But in this case, since we will only be needing the property and tearing down the home what do we use to: 1. come up with comps  2. develop my repair estimates.

My guess is that I need to find other older properties that have been bought, torn down and turned into multi-property homes in the area...

Any help would be greatly appreciated!

@Stef Martin if your intent is to scrape and rebuild, then you need to use comps that are new construction in the area to back into a value on the land by subtracting all of the costs to do the deal including your profit. The value of the property today is determined by what you can build on it. It is typical to buy the land at about 20% of the end value of the property you will build and sell.