apple,

I have not seen the house so I will not be of much help unfortunately.

Here is a recent comp that I hope you considered:

http://www.sdlookup.com/MLS-100042337-4126_Palisades_Rd_San_Diego_CA_92116

It is in poor shape but I think Kensington is considered to be a better hood than Normal Heights even though it is a bit farther east.

I just looked at the pictures of your house on Hawley and it looks like it has had considerable work done to it so that would certainly add to the value. Did the inspection turn up anything?