First Yellow Letter response, Woohoo! Now what...possible teardown.

[Brian Huber]

Hey all, so I received my first call as a result of driving for dollars.  I returned his call and have plans to speak tomorrow.  He did give me his address so I've been researching options. I probably getting overly excited but I figure this could be a good exercise for practice.

It's a SFH, one story 2BR/1Bath, build in the 50s on one acre of land in the DC metro area. Bought in the 80s for about $175K. Given its VERY small size, it seems there's not much one can do with the current house. Between Homesnap and Zillow, the current value comes in at about $365K. Land is assessed at $247K. Some comps of newer luxury home construction in the area are:

 5/4, 2700 sq ft., $829K

5/4, 4800 sq ft., $935K

5/3.5, 3700 sq ft., $790K

So, my question is, would I look to get a buyer/builder interested in the property to build a new luxury home?  Is that a special group of buyers? Should I shoot for as close to JUST the land value as possible? 70% rule puts it at about $255K.

Any insight would be greatly appreciated. Thanks!