Any contractor is going to tell you it depends on what you want to put into the house. They're going to quote you anywhere from $130/sqft to over $220/sqft.
When you do tear down, please talk to "Re-UseIt & Habitat for Humanity" there could be many reusable items in the house from plumbing, electrical, wood products etc that they can use & the value of those items you can write off on your taxes as a charitable donation. It helps to bring down the actual costs of tearing down.
I have some inexpensive but very good contractor referrals if you'd like to talk to someone about your project. I also have a great architect I can refer to you.
Shoot me an email directly if you'd like to talk to me some more. I don't look back on this same Trulia thread for answers posted after mine.
Realtor Since 1996
Main Street Realtor... more