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Bulldozer Bait in Southampton?

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New to the market, we spotted this 3 bedroom 1.5 bathroom going for $1.35M in Southampton. This humble ranch clocks in at 1651sf. Built in 1949, this property did not keep up with the times. Walking distance to the village and South of the Highway, this could be the ideal fixer-upper for someone who really loves projects or knows a good contractor. The more obvious route is to treat this listing as a teardown. With 0.26 acres, there's not a lot of wiggle room for a pool. Are the sellers being greedy, or is the land value justified? Do you think this is a diamond in the rough?

Southampton Ranch [Corcoran]