The smallest house on the market in San Francisco just sold for $550,000

San Francisco is known for having the most expensive real estate market in the US with no shortage of people willing to spend an arm and a leg to live there.

And now, someone has snapped up the smallest house on the San Francisco real estate market for $550,000.

That might seem on the more affordable side in San Francisco until you realize the "studio cottage," as it was called by the agent at Paragon Real Estate Group, is only 363 square feet.

That means the buyer paid over $1,500 per square foot for the property.

The mini house is in the Mission District and will be featured on HGTV's "Tiny House Hunters," according to Curbed San Francisco. It has only two rooms and an outdoor patio area.

Keep reading to see inside the home.