The home is 852 square feet and sits on a fairly nice size lot. It has the following disclosure: Site area reflects annexation of approximately 3350 sf rectangular strip to abutter ... This sounds like - without knowing 100% - that the lot includes 3300+ square feet of an abutting property (you would need to find out if that is something legally owned or if there are easements). The property sits on a highly trafficked street which decreases the value (might be one of the reasons the property has been on the market for 230 days) but is close to the beach/harbor which is nice.
Overall seems the property was over priced (for the soft market) to begin with and is now slowly dropping down into a proper price range. Hard to give any more advice without at least interior shots which the sellers agent has not posted. According to the MLS the tax was assessed at $2834 in 2007.
Hope that helps! Good luck.