Selling a house for just $1 might sound impossible, but it’s actually a legitimate real estate strategy used by thousands of property owners across the United States every year.
Whether you’re looking to transfer family property, make a charitable donation, or quickly resolve financial difficulties, a dollar sale can offer surprising benefits—though it comes with important tax implications and legal considerations you need to understand first.
A Guide to Selling your Home for $1?
📋 Quick Facts
Why Someone Would Sell for $1
Family Transfer
Transfer property to family members while avoiding inheritance tax complications. Parents commonly use this to pass homes to children.
Charitable Donation
Donate to charity and receive significant tax write-offs for the full market value while supporting a worthy cause.
Legal Requirements
Court-ordered sales in divorce settlements, probate proceedings, or other legal situations requiring quick transfers.
Property Issues
Distressed properties requiring costly renovations that exceed the owner’s financial capacity or interest.
Tax Implications You Need to Know
⚠️ IRS Gift Tax Considerations
Important Note
The buyer inherits the seller’s original cost basis, not the $1 purchase price. This affects future capital gains calculations when they sell.
Weighing the Pros and Cons
✅ Advantages
❌ Disadvantages
Who’s Interested in $1 Houses?
Various buyers seek these unique opportunities: