Beach Front Property - Tear Down - How to Comp?

[Abbas Raza]

Hello fellow investors, 

I have a lead on a property in the Santa Barbara, Montecito, California area.  The house is one of the last remaining original homes in the area and would need to be a tear down.  The lot, however, has an incredible ocean front view.  The owner was very selective and chose this property specifically for the view 20 years ago when he bought it.  The land should be worth much more than the structure itself.

I want to know the best way to go about getting an estimate on the value of the land plus tear down cost.  I looked at the county assessor website and the value is below.  This cannot be right.  

Land & Mineral Rights:

$474,151

Homes in the area with ocean views are around $5 million.  Obviously, this varies depending on the home.   How do I go about getting an offer together for this property for the land + tear down cost?  Owner is motivated to sell, but knows he has a prime lot.  Your help would be much appreciated!