I can't give a totally well-informed explanation here, but I can tell you these points...
When Fred Wostbrock died, the person who bought his house immediately tore it down and built a new house.
When Ann Cullen died, the person who bought her house immediately tore it down and built a new house.
When Betty White died, the person who bought her house immediately tore it down and built a new house.
It has something to do with tax incentives, I know that much. But all of the comments about the quality of the house are missing that point--whoever buys this house is buying it for the LAND. I promise you, this house is getting torn down as soon as it's sold.
EDIT: Lazy copy-paste screwed this up.