That's what is happening in villages' like streetsville, the older small houses on big property is being bought for more than market value, then the new owner rips the house down and builds a much larger home.I have never heard of anyone getting double. Maybe slightly over market but the first offer is normally the best and it goes down quickly if the developer is unhappy with you. Normally, the advantage is a transaction free from conditions as the developer doesn't care what condition your house is in. Thinking you can holdout and generate a lottery win normally ends up with you on an orphaned piece of land surrounded by new development worth less than the initial offer and not easy to sell.
the houses most of them was owned by canada brick workers and avro aero workers when they was built. Funny fact is the houses that are setting on basements was owned by upper management