We came across Alejandro Casas-Cordero selling his artwork while we were walking in Valparaiso the past weekend. He makes scale models of the typical houses found on the hills of Valparaiso and even puts lights in them that you can switch on and off!
These houses are very realistic and I think they make for great souvenirs! See if you can spot him exhibiting his work if you are in Valparaiso! He has a fantastic website where you can see more of his work: http://www.valparaisoaescala.cl