A NEWLY renovated property is available this month at a staggeringly low asking price of one dollar.
The three-bedroom home is also move-in ready and located in a popular spot of a prominent city.
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Those looking to relocate to Newark, New Jersey, may be interested in the quieter suburban area where the one-dollar house at 28-30 Reynolds Place rests.
It was built in 1945 and completely renovated by flipper and real estate agent Brendan Da Silva.
Da Silva paid $300,000 for the property and invested another $125,000 for the upgrades.
“It’s a lot of money,” he told Realtor.com recently.
“I’m not rich. I definitely was nervous.”
The realtor and house flipper made the move after trying to convince some clients of his that listing a home for one dollar would work.
But, is the home really selling for that amount?
BUYER MANIA
Listing a home for $1 is a marketing tactic to spark interest, usually when it’s sold in an auction-like manner to the highest bidder.
This is the case with the Reynolds Place property.
Interested buyers are expected to make a wide range of offers, with some landing around the median home value for the area, which is currently around $444,500.
Da Silva has already gotten at least 50, with some being well below the median, but he thinks the serious buyers could very well get into a bidding war.
“That really doesn’t matter what you list the house for,” he said.
“All that matters is the market, and the market will always give you what you demand — what the market demands of the property, right?”
This is supported by findings from Hannah Jones, a senior economic research analyst with Realtor.com.
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
Jones explained that “this area still sees far fewer listings than pre-pandemic, suggesting buyers still face fierce competition to be in the area.”
“If the price tag was instead reflecting an abandoned market, offers would likely be much lower. However, healthy offers for the $1 home suggest the surrounding market is strong and competitive for buyers,” she added.
THE REAL DEAL
The home also does offer a lot with three bedrooms, 1.5 baths, a new kitchen with quartz countertops, two-car garage, and completely finished basement.
Property records also show a square footage of 1,750 on a 4,901 square-foot lot.
The Reynolds Place home is also located on the “last street in Newark,” according to its Zillow listing.
Just a block away is Seton Hall University and Da Silva explained that the community is “unbelievable” and “looks out for each other,” especially through the Eastern Parkway Neighborhood Association.
“It’s probably the best location you could possibly dream of to raise young families or just to enjoy life,” he added.
Other homes listed for $1 have also been highly-sought-after.
A “traditional” property with three bedrooms was also listed for $1 last August and sold fast in Louisiana.
There was an online auction held for a three-bedroom property in Alabama with a huge yard around the same time.
