Actually, in this case it's the first of these two options. This house in Nashua, NH, is not being totally demolished (as you might think by the photo). I learned from folks at the historical society (located right across the street) that the demolition is removing what was an addition with the main structure being left intact. I was told that the folks who bought the property plan to renovate and then re-sell it or in current terms "flip" the property. Looks like the new owners are in for major renovations.
Enjoy your weekend, Everyone.