The $5 Million Cottage

INSIDE EDITION takes a look at the world's most expensive cottage. What makes this tiny house worth $5 million?

A tiny home in Carpinteria, California is probably the most expensive cottage in the world.

"This property is listed for $5,295,000," real estate broker John Henderson tells INSIDE EDITION.

That's right, $5 million for a house where the master bedroom is the size of most walk-in closets.
Why is there such a huge price tag? The house is only 10 steps to the beach!

Henderson took INSIDE EDITION on an exclusive tour of the house, which is barely 750 square feet.
The house is so small they actually put the bathtub outside, on the patio.

Unbelievably, some people consider the outrageous price tag a bargain. The houses nearby are worth three times as much.

In fact, director George Lucas just spent almost $20 million for a house up the street.

It just goes to show, it's all about location, location, location.

"There's only so many front row seats and this is a very nice one," says Henderson.