Small Laguna Beach cottage lists for a mighty $18 million selling price

A quaint cottage, with zero bedrooms, one bathroom and a spectacular ocean view is on the market for $18.8 million.

The 432-square-foot home sits on an 8,500-square-foot lot, and real estate agent Garrett Rau says the real value is the land, so the asking price is a reflection of that.

"So, $18.8 million is what you're paying for the land – you get the cottage with it," he said.

Along with the Laguna Beach community, the cottage at 1041 Marine Drive has changed a lot over the years. Rau said tax records show it was built in 1923, and it's the last one like it on the street.

The area was an artist colony, attracting painters who liked the vistas. "This is one of the original cabins, if you will, that were frequently built for people to come down and use in the summertime."

He said some of the cabins were moved from one property to another because they weren't foundationally attached.

"When families would come down, they would frequently put tents in the backyard, because the weather was so great," Rau said.

Not all the cabins had bathrooms; this one does.

"It's easy to look at the price and look at the house, because in most places where you're buying residential real estate, you're buying that house. But it is location, location, location," Rau said.