This is an important question to ask when you are considering a major renovation or remodeling project on Cape Cod. Renovation costs are skyrocketing, especially for antiquated homes that may require substantial additional work to meet all current structural, mechanical, and enery codes. The real underlying value for properties on Cape Cod is the land and the location. So often times, when compared to the value of a remodeling, a new home of comparable size may not be much more expensive, and in some cases, could be less expensive. Something to think about for your Cape Cod Home. Here is an article from about.com with some advice on a teard-down project.
http://homebuying.about.com/od/investmentproperties/qt/92707_TearDown.htm