I think it looks great. I wish I was buying and doing it up.

it depends where it is. Around the corner from the Houses of Parliament - it's a bargain. Northern-most tip of Scotland - bargaining down the price is required. 1 acre of land in a city / town / village (just guessing here as the property is described as being opposite a doctor's surgery) is a property developer's dream.

Agreed, location plays a big part in this. Also local market should be considered.

You can do a quick and dirty profit/loss estimate. First, get data on the value of other houses in the area. Adjust a bit up or down for size of house and lot. That's the finished value. Then cost out the repairs. If it looks like a good deal, then hire a really good inspector and do a much more careful budget.

Before you hire the inspector, you can buy a book on home inspections. It will give you some idea of the chances that your electricity and plumbing need to be redone.

Lastly, consider whether it would be a bargain or not if it was a tear-down.

Check the zoning laws. Whether it can be made into multifamily housing or if it's a teardown and rebuild as single family housing depends on existing zoning laws wherever it is. Ask the agent why it has been abandoned for so long. Asbestos? Lead paint? Train station next door?

A "family project" may mean that each family member is expected to contribute money in some share, maybe labor as well. It isn't clear to me from your post what is meant. If you yourself have no expertise, you would be risking your own money and time in a project whose extent you may not have the experience to understand. As others have explained, you need a real profit/loss estimate, budget and an inspection. Family businesses are often best run with written agreements.

I have no idea about your area or the land value without the building. To me it looks like the building is worth saving but it is hard to tell from one picture.

My concern (besides price and value) is the actual condition of the home. It is obviously neglected and who knows what upgrades will be needed just to bring it up to code. A thorough property inspection and realistic renovation budget would be needed for me to make any kind of decision. That and knowledge of the local market.

I am a UK resident and can assure you that location should play a huge part in your families decision making process. Do you have a postcode for the property? A good place to check other properties for sale in the area is a site called Zoopla, you can also look at the prices that other property sold for in the area - proceed with a great deal of caution would be my advice if you are purchasing from afar!

I had a look for you - what would worry me is the train rails across the road. Is that line in use? Is it going to be noisy?
Have a look at this: http://www.zoopla.co.uk/market/county-durham/stillington/messines-lane/ for more financial information.
Also, it seems that the property was first listed in January '13 - that's 10 months ago. How come nobody bought it during this time? I'm sure developers would've snatched in no time if it was a good investment.

I've just had a scout about and from what I can gleen, this may well be targeted by a developer, reading between the lines and subject to the necesssary planning consents redevelop the site. Unless your family have a compelling reason to be in that particular geographical area, I would be very cautious. Research other properties in that area, their style and selling prices.

Based on the condition of the house...... if it is not livable don't pay much more than the land is worth. If it is a total tear down take the cost of demolition and removal into account.