How to Evaluate a tear down

[Breshawn Hawthorne]

Wondering how to evaluate a tear down that will be a wholesale deal. should i call around to builders and ask how much it would cost per Sqft to build in that area ? or comp a house that was previously torn down and built. Also is this the same as finding out how much someone would pay just for the dirt or is that a little bit different. Hope that makes sense. 

[Charlie MacPherson]

@Breshawn Hawthorne Actually, you're looking at lot value minus demo and removal costs.

Around here for an average size cape or colonial, we figure around $35K.

Don't forget, you'll likely need approvals from the town to demo and also for whatever you plan to build there.  I wouldn't jump in until I had that all under control - or I'd make my offer contingent of obtaining the necessary approvals and permits.