Real estate investors who have built equity in investment properties in high value areas might want to consider teardown options before selling their property.  A builder might be your best buyer.

Teardowns.com links sellers, buyers and builders.  There are a few rules of thumb.  Upscale new construction can go for $200/square foot or more, meaning that a 3,000 square foot house would go for around $600,000.  Factoring in land and other expenses properties in the neighborhood would generally need to sell for north of $1,000,000 for the strategy to work. 

This narrows down the candidate list to certain regional areas, but in situations where it's viable selling to a builder for teardown can save the seller a considerable amount.  Commissions through resources like teardown.com range around 2%, compared to the standard 6% - a $20,000 savings on a $500,000 property.  That goes straight to the bottom line.   

Selling a house as a teardown is an emotionally difficult decision for someone selling their primary residence, especially one where they might have raised a family.  No one wants to condemn their beloved home to face the wrecking ball.  But for a real estate investor who's fortunate enough to be holding a property in an area where values have skyrocketed this might be an attractive option.