How About a 50s Beach Bungalow by the Bay in Water Mill?

We get that someone paying $3.5M (the asking price) for a property probably wants and expects something a little more high-end than a three bedroom, one-bath 1950s house, so this place, on Burnetts Cove, is most likely bulldozer bait. But we like it just as it is, with knotty pine paneling (and scallops) and exposed beams. It's 2000sf, and heck, the house has made it through Hurricane Carol and Superstorm Sandy and so on, so a new build is probably going to be all right, even though you'd have to conform to the latest FEMA regulations. The plot size is a half acre, and you're right next to Flying Point Beach. What do you think? Keep as is or build new?

· Bay Front Beach Bungalow on Flying Point [Sotheby's]