AMERICANS looking to sell their homes are increasingly turning to a sneaky trick, listing their properties for just $1.
The tactic, intended to lure in curious buyers, has successfully led to some homes selling for upwards of $500,000.
Homeowners are increasingly listing their homes for just $1 in a clever marketing move[/caption]
One property listed for just $1 sold for more than $500,000[/caption]
In an unconventional marketing move, homeowners are putting their properties on the market for the eye-catching price of just one buck.
The extremely cheap price tag – not intended to be taken at face value – is a tactic to gain attention and has proven successful, leading to bidding wars and even six-figure sales.
The trick helps the listing reach a greater number of prospective buyers and allows the market to determine a home’s true value, according to real estate agents.
It is becoming increasingly appealing to both buyers and sellers as home prices in the US reach an all-time high, coupled with slowing sales and elevated mortgage rates.
New Jersey-based real estate agent Brendan DaSilva, for example, has taken advantage of the $1 strategy, using it to dictate home values and sell properties for six figures.
“I always find myself arguing with sellers over what is the correct price to list at – usually the sellers fear under listing it,” DaSilva told Realtor.com. “This proves that’s not possible.”
He listed a home with three bedrooms and 1.5 bathrooms for just $1 and accepted an offer of approximately $550,000.
Although the sell price was far below the median list price of $786,500 for properties in the New York-Newark-Jersey City area, per the Realtor.com June Housing Report, it aligned with other comps in the neighborhood.
DaSilva gave potential buyers one week to submit their best offer, with many bewildered by the $1 list price.
The three-bedroom home eventually drew plenty of attention, with the agent receiving so many offers – ranging from $1 to $550,000 – that his team had to begin reviewing them over the phone to keep up.
For those still in search of a deal, a $1 property with five bedrooms and two bathrooms is currently for sale in another New Jersey neighborhood, located at 86 E Camplain Road in Manville.
“I wanted to try something new – a new approach – and so far I think it’s been a great way to sell,” real estate agent Linda Thell, who has received several offers on the home, told Realtor.com.
“A list price is to be seen as a suggested price. However, in the end, the market will always decide. So far I am happy with the turnout and looking forward to see where we end up,” she said, with plans to take offers until July 28.
HOME HELP
Many economists support the $1 price tag tactic, arguing that agents must come up with clever ways to draw in buyers due to current market conditions, with house prices climbing.
Tips on spotting property scams
These five tips on avoiding real estate scams have been shared by The Bellamy Law Firm.
Fake Owners:
- This is where properties are listed for sale by scammers who do not own them.
- They may ask for a deposit to “hold” the property until you can view it to lure in prospective buyers.
- Be wary of people who ask for money upfront and before signing any documents ensure you ask to see the tax records and deeds.
Fake Real Estate Professionals:
- Scammers pretending to be real estate agents.
- Prospective buyers can check the Board of Realtors website for the individual and their real estate license to confirm their story.
Cash Offers:
- Warning phrases for this are: “We pay cash for homes” and “We buy ugly houses.”
- This often sees people sell their homes for much less than the going market value and those who are hard-up are often victims.
Predatory Lending:
- Some mortgage lenders may urge borrowers to repeatedly refinance their mortgages when it is not needed so they can get more cash on hand.
- It is also important to be suspicious of lenders who come to you before you have requested help.
Bait-and-Switch Moving Companies:
- This is where the moving company gives you an estimate for your belongings and then increases the cost when they arrive which pressurizes customers to accept the new offer.
- Another version of this is when movers pick up your belongings but hold them hostage and refuse to deliver them until more money has been paid.
- People moving homes should ask for a license number from the moving company and check for complaints with official companies like the Better Business Bureau and the Federal Motor Carrier Safety Administration.
- It is also worth shopping around by getting multiple quotes and holding off on paying until the move has been completed.
Source: The Bellamy Law Firm
Last month, over 500 properties were listed for $1, which is 24% more than June 2024 and 82.9% more than in June 2023, according to Hannah Jones, senior economic research analyst at Realtor.com.
“The number of homes listed for $1 has climbed steadily over the last year as sellers look for creative ways to draw buyer attention,” she said.
With housing affordability currently at historically low levels in many areas and mortgage rates at 6.74% this week, according to Freddie Mac, the $1 tactic is an enticing way to help a property gain traction.
DaSilva praised the strategy, telling Realtor.com that it has revived overlooked listings and generated buzz that’s priceless.
“I knew it would trigger insanity,” he said. “The buyers have been split between confused, $1 bids, and a lot of serious attention. Managing was nearly impossible.”
Check out the “unbelievable” three-bedroom home listed for just $1 in “the best location” – it’s newly renovated and move-in ready.
Plus, see the “traditional” home for $1 with three bedrooms and a two car garage.
