Here is another reason, I don’t think you can easily ridicule the asking price: this property on Law Street closed at 1,205,000 on July 27. 4BR, 3BA, just under 2300 square feet, it’s not as close to the beach and it’s not La Jolla schools:

http://www.trulia.com/homes/California/San_Diego/sold/6792108-1319-Law-St-San-Diego-CA-92109

Additionally, a 3 bedroom/ 2 bath condo a block further east from that property sold for $815,000 at the end of June.

http://www.trulia.com/homes/California/San_Diego/sold/1842441-909-Agate-St-3-San-Diego-CA-92109

Maybe they won’t get it, but based on these recent comps, not ridiculous.