They are buying the lot. That lot size in Cupertino will allow you to build a house that is 3,555 sq ft, which is bigger than most homes around it (they averag

They are buying the lot. That lot size in Cupertino will allow you to build a house that is 3,555 sq ft, which is bigger than most homes around it (they average about 1800 sq ft). If you build it with a basement, which a lot of new construction is doing around here, you can get up to 5,700 sq ft, since Cupertino doesn't count basement space against you for FAR regulations. That's a pretty big lot around here, and the developer who buys it and builds the max house on it will sell that house for close to $5M.