At $1 million for a quarter-acre lot on Williamsburg it's a borderline teardown, no matter how nice it is inside.
it's the low end in the neighborhood. Some folks target that. It's possible the kid doesn't know real estate value and was taken, but I don't suspect he lacked advice. Yes, it probably could be torn down and built out to the max of the zoning code. It probably was very comfortable and fit a priority for family visits.