They say the key to a great house is location. The 446-square-foot pad is also close to Santa Cruz Harbor as well as shopping and dining options. Despite the home’s tight square footage, a recent price drop has led to multiple offers. While a hair under $700,000 isn’t exactly cheap, the home’s location is a huge factor, as is the rarity of homes so close to the beach. “They don’t come up that much, especially under a million dollars,” Bailey says. One thing to keep in mind: This property can’t be rented out, because the city places strict limits on vacation properties. According to the agent, that limitation is one of the reasons the owner, who inherited the home, decided to sell. While prospective buyers are mostly looking at the place as a second home, it could also work as a primary residence for a single person without a lot of stuff. Built in 1944, it’s probably “one of the original beach cabins” constructed by farmers trying to escape the heat of central California, according to the agent. Read more.