The $1 Home Marketing Tactic Is Rising Steadily as Sellers Try to Get Creative

A clever real estate tactic has been drawing shoppers looking for a steal as markets become buyer-friendly but high mortgage rates keep would-be owners on the sidelines.

There has been a rise in the number of $1 properties being listed for sale—and they’re not all foreclosed or abandoned. Many of these homes are stunning properties with competitive amenities.

In the past, real estate agents have used this marketing tactic as an attention-grab, knowing full well that the home wouldn’t actually sell at that price. Typically, when experienced buyers spot that $1 price tag, they know not to take it literally, whereas first-time homeowners may find it to be a deceitful marketing method.

Yet, Brendan Da Silva, a New Jersey-based real estate agent, says the $1 marketing scheme has worked wonders for him.

“I always find myself arguing with sellers over what is the correct price to list at—usually the seller’s fear of under-listing it,” Da Silva told Realtor.com®. “This proves that’s not possible.”

Da Silva says he receives hundreds of phone calls after listing some of his Newark properties for $1, with potential buyers given one week to present their best offer for the house.

Getting buyers interested is a difficult game

Economists believe that real estate agents have to invent new ways to interest buyers, especially when home listing prices are on the rise.

“In June, 512 homes were listed for sale at a price of $1—24% more than June 2024 and 82.9% more than in June 2023,” said Hannah Jones, a 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.”

With home affordability nearing record lows and mortgage rates at 6.75% this week, according to Freddie Mac, many buyers have grown fatigued or priced out of traditional listings. In this environment, tactics like the $1 listing offer a way to cut through the noise—even if the final sale price is far from that enticing sticker.

While the strategy may raise eyebrows among some first-time buyers, agents like Da Silva say it’s breathing new life into overlooked listings and generating the kind of buzz that’s hard to buy.

“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; we began reviewing comps over the phone with buyers.”

Debating the ethics of the marketing tactic

However, some $1 listings are marketing ploys, scams, or placeholders for starting bids in auctions. This can mislead potential buyers, wasting their time and resources. Some people argue that real estate investing, including buying undervalued properties, can distort the housing market by driving up prices and making homeownership less accessible for regular buyers.

To real estate agents who argue that the $1 home marketing scheme is unethical, Da Silva countered: “You are being obnoxious and do the same thing when you list a house for $100,000 less than it’s worth.”

With active listings up nearly 29% year over year and homes sitting on the market for a median of 53 days, sellers are facing stiffer competition, according to June 2025 data from Realtor.com. While the national median list price held steady at $440,950, more than 20% of listings saw price cuts.

Despite this, Da Silva was confident that the $1 tactic could generate interest.

“I think in any market this would work,” he said.

In this crowded, cautious market, attention-grabbing tactics like the $1 listing are proving to be more than a gimmick—they’re helping agents spark bidding wars and close strong.

Even with that, Da Silva said he wouldn’t always recommend the method “because the calls were so tremendous in volume.”