Only in America's most expensive city! Rickety old San Francisco shack that is falling apart sells for WAY above market value at $408,000

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Even the most ramshackle properties in San Francisco are worth a ridiculous amount of money. 

Not only that, potential buyers actually are fighting over them.

A 765-square-foot wood shack that has sat in the city's Outer Mission neighborhood since it was built in 1906 as the area built up around it sold this week for a whopping $408,000.

It had been advertised for sale at $350,000, but the price quickly rose under competing bids.

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The tiny abode is being showcased as a single family home and costs an expensive $458 per square foot

What money can buy: The tiny brown home pictured above is being sold in San Francisco for $350,000

Located in the Outer Mission neighborhood, the 765-square-foot wood siding home only has two bedrooms

Realtor Brian Tran said there was quite a battle over the tiny abode.

'There was a fight for it,' Mr Tran told NBC Bay Area.

'But they made us an offer we couldn't refuse.'

The house, which sits at 16 De Long Street, managed six offers in the 10 days it was up for sale.

Taking up a decent lot measuring at 1,633-square-foot, the property will now likely be restored and used as a rental.

The shack was built in 1906 as relief housing after the city was devastated by a 7.8 earthquake.

It is now considered historical property, and this cannot be torn down or undergo any major changes, NBC reported.

'[The new owners] are very limited to what they can do,' realtor Alex Han told NBC.

'But they are going to fix the foundation, the roof, plumbing…it needs a complete overhaul.' 

The minute home sits on a 1,633-square-foot lot on 16 De Long Street in San Francisco, California

The tiny one-story abode was showcased as a 'single family home'.

The listing described the property as a 'distinguished home in need of work'. 

A recent report by Zumper revealed that San Francisco is the most expensive city in the US when it comes to renting homes.

The average cost for a one-bedroom apartment reached a record $3,530 in the city in August, compared with $3,160 in New York, $2,270 in Boston and $2,110 in Washington DC.

To rent a one-bedroom home in Los Angeles will set you back an average $1,830 a month, while in Seattle, it is $1,650.