There are big property tax benefits to tearing down 99% of the old house and building the new house incorporating that 1% or so left over versus scraping all of the old and building new.
The former is classified as a “remodel” and the latter as a whole new house. The property tax differential, which goes essentially forever, is HUGE.
Furthermore if you are near the coast, I believe the Coastal Commission will not interfere with a remodel as compared with a new house. The Coastal Commission is a sleeping dog you don’t want to kick.