Don't forget the cost of the land; in Northern Virginia they're not making much of that any more, and the cost of an infill lot (with or without a house to tear down) can be in the high six figures before you even build anything on it.
True. I forget about that since I don't do land loans normally, I do loans existing homes and don't see the land cost itemized.
Ever look at a lot for sale and think "they want a hundred grand for DIRT?"