SAN FRANCISCO (KPIX 5) — A tiny San Francisco property is expected to draw a big price when it sells.

It’s the cheapest house on the market right now, but buyers are looking beyond the tiny home’s outer walls.

To really get an idea of how crazy the San Francisco real estate market is, don’t look at its ceiling, look at its floor.

This house at 459 Ralston St. in the Merced Heights neighborhood is reportedly the cheapest single-family home for sale in the city.

Listed for $649,000, the two-bedroom cottage is less than 600-square-feet and every room needs a complete overhaul.

Listing agent Robert Tao said, “We just did an open house this weekend for two days and so far we have about 100 parties walking through. So, it’s going to be very competitive.”

Built before the 1906 earthquake, no one even knows how old it is, since all the records were destroyed in the fire.

It sits next to an upscale neighborhood that used to be the old Ingleside horse-racing track.

Some believe it may have been the residence of a local jockey or horseman. But with an unusually large lot — just right for a rebuild — local realtors say it will not sell for its asking price.

Coldwell Banker realtor Karen Mai said, “It’s going to go higher…It is very crazy that the price is so high that a lot of people cannot afford it.”

San Francisco firefighter Kevin Day said, “I have not made an offer yet…but I’ve been told I wouldn’t even be able to compete. They’ll probably get $800,000 to $1 million for it.”

While cash investors compete to level places like this and build bigger, people like Day don’t stand much of a chance of finding a place to live in the city.

And that’s a problem.

Day said he’s looking for a place he can fix up.

“Who knows, I might have to stay in my small studio apartment until I retire,” Day said.