Can you really buy a house for $1? Here’s what those lists mean—and where you can find them

The current average list price of a home in the US is $415,000 — but there are hundreds of homes on the market for just $1.

Sometimes, listing a home for $1 is an unconventional marketing strategy to help broaden the buyer pool or start a bidding war. It can also be a way for the market to determine the real value of the property.

“The $1 price is often a tool used to efficiently move difficult properties in markets where traditional listings don’t always work,” he says. Hannah JonesSenior Financial Research Analyst at Realtor.com®.

Amir’s wayA real estate agent with Coldwell Banker, licensed in Florida and California, says, “It’s purely a gimmick designed to make the property go viral and garner a lot of attention and interest quickly.”

A home listed for $1 will receive more offers than the list price and will eventually sell for market value, he adds. Kti sphaniakA real estate agent with exp Realty in Northbrook, IL.

“Although it may be a ‘scam’ in some people’s eyes, when a home is marketed correctly on the open market, you can’t really undervalue it – buyers will always set the price.”

Other times, $1 listings may indicate bids starting at foreclosure or auction.

Caitlin Wardlow Wardlow Auctions recently listed a Louisville property for $1.

“It definitely gets people looking,” she tells Realtor.com. “We get a lot of calls and emails asking, of course, ‘How can you sell something for $1? What’s wrong with that?'”

But, even a $1 house can come with sky-high wires attached.

“I listed the houses for that cheap because we wanted someone to buy the seller of their country club membership obligations,” said the Palm Beach real estate broker. Jeff LichtensteinCEO of Eco Fine Properties, explains Realtor.com. “This was very common in the ‘big short’ market where the cost of carrying a membership was very high and a house could only be sold if no one bought a membership.”

You can also be on the hook for back property taxes, code violations, and other liens not paid by previous owners, so you should always do your due diligence before submitting an offer.

Real Estate Specialist Sean Rhodes Says Clever Offers, “I spent $2,500 for a $1 property and exposed myself to $67,000 in unavoidable code violations. You’re not just buying a house; you’re buying a debt obligation. That knowledge meant I didn’t buy it, so $2,500 saved me from a $1,000 mistake.”