The $1.00 Home
It is not surprising many people ask about the $1.00 homes listed in our local BLC (Broker Listing Cooperative). The Indianapolis BLC is the same as the Multiple Listing Service (MLS). If it looks too good to be true, it probably is!
These home are not available for one dollar. Although listed as such, they re actually homes which are being auctioned. They require a minimum bid, as well as a substantial deposit the day of the auction. Some require a non-refundable earnest deposit when your bid is accepted. You will have to do your inspections beforehand or lose your earnest money if you decide not to buy.
There are currently 20 homes in the Indianapolis area which are listed for a dollar or less. A few honestly look like they may only be worth the listed price, while several are very nice homes. About half of these homes have been on the market for quite a while. My guess is the minimum bid is too high or the interior condition is not acceptable.
Whether you are selling a home by auction, with an agent, or FSBO, price and condition will always determine whether you sell.
Daytona - I recently called one and the reserve was $600,000 - still hasn't sold!
Sounds like it would be too good to be true. Many homes go at auction and in todays market many investors are taking advantage of these homes.
Lynda - It's basically an auction- I recently called one and asked the broker/auctioner what the reserve amount was. He said it would take about $600,000. to get the home. That's a bit above that minimum $1.00. don't you think?
Well this is a new one on me, it's the first time I've heard about the $1.00 listings. What's next?
Ashley - My consensus is the same as yours. I have not seen many good deals at the auction, especially when there is a reserve.
Marchel - My experrience is the same as yours. These properties are not necessarily a great deal.
My RSS feed is on my side bar. I'll come by and check out your blog.
Joanne - Sometimes they do sell at the first auction. Many sit because the reserve is too high, just like any other overpriced home.
Real Estate Chocolate - It will be $1.00 on Realtor.com - one in particular that I keep seeing and am asked about is still available. Must be price or condition:)
Thanks for the auction insight. So if I go on Realtor.com, the prices show up as $1.00? That's crazy.
As for your closing thought: Price and Condition. Price and Condition. Price and Condition. You can't say it enough yet so many sellers don't understand it.
I'm just now getting these outside blogs figured out. I guess I'm slow to the curve. We have these listings that show up for $1 in our MLS also. I guess it must be a national thing. Personally I have not found that great of a deals for my buyers using the auctions.
By the way I'm trying to add sites to my yahoo home page but couldn't find your RSS feed. Is that available? Like I said I'm just figuring this all out.
Paula, do they sell when they are auctioned? Sometimes they give it a shot but don't go over the reserve price, so the house has to sit a while longer. I am glad we don't have that situation here in the mountains of Colorado.
I remember a few years ago when the first $1 listing showed up in our MLS. The board was flooded with calls. I haven't heard of anyone having a ton of luck with these as buyers.
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