Draw it out with a pencil or a utility knife - always score the outline with a knife and then use a sharp chisel to remove the wood. A spade bit works good for the hole.

Thanks Chandler, Well my wife, her mom & grandmom (basically the entire family on her side and not to mention some folks in my side too) all believe in an ancient Indian Architectural Science called Vaastu (almost similar to Feng Shui). According to it the main entrance door shouldn't face southwest and 2 other directions. More info here:Vaastu Explaining all this to HOA should be real fun. I guess it's 1 storey House is sided by unbuilt lot on one side but a neighbor's property on the other (I don't they'll be thrilled with this idea either) I just need some guess estimation to convince my wife to seek alternatives for not changing the door (i.e. Not buying the house)

OK Larry, you're probably still all right as far as dealing with raviies, but your comments have just alienated you from the REST of the family!! (LOL!!) raviies, can you post a picture or two. What's inside and what's outside? Is there a different wall that could be used to install the door in so that it faces some other direction? I'm thinking that this door is probably in the center wall of an alcove, and that wall just happens to face southwest. Moving it to one of the side walls of that alcove is probably doable, but raviies, for the expense of doing that, your wife and the rest of the family had BETTER BE absolutely in love with the rest of the house!! (i.e. -- the rest of the house is absolutely love it and gotta have it, and the $2K to move the door is not much more than a minor inconvenience.) Otherwise, the real estate market in the Golden State is such that you just might want to keep looking!! Lord knows there are more homes available than there are buyers for those homes!!