5 of the Cheapest Homes for Sale in the U.S.
Buying a home is the largest purchase most people make during their lives. To prepare for this sizable investment, people save up for a down payment for many years, work on building a healthy credit profile, and look through their budget with a fine-toothed comb to determine how much house they can afford. The process ends up taking quite a long time — sometimes several years. According to Zillow, as of late, the median price of homes that are sold in the U.S. is $217,800, and list prices are generally around $120 per square foot. A person’s mortgage payment at this level ends up being around $1,400 or so (depending on down payment, interest, and other factors, like PMI).
Recently, we shared an article about the most expensive homes in the U.S., which included homes with multi-million dollar price tags. Now, that’s take a look at some of the most inexpensive homes. These homes are in the $5,000 to $6,500 price range and a $5,000 home produces a mortgage payment as low as $19 per month. You can find homes at this price range all over the country, especially in areas where housing prices are lower than the nationwide average. What do these homes look like? What features do they offer? Most importantly, why on earth are they so inexpensive? We all know that when something sounds too good to be true, it probably is. Let’s find out by checking out a few of these properties.
1. $5,000 Detroit, Michigan House
This home has three bedrooms and one bathroom. It’s a decent size — 1,284 square feet — and the Zestimate (Zillow’s estimated market value) on the home is over $40,000. This house even has tenants who want to stay and pay $500 per month, which is more than 50 times the estimated mortgage payment. However, the “problem” with this property is this portion of the listing, which states the following: “Property is sold via quick claim deed, buyer to pay back taxes. Home sold as is, buyer responsible for any repairs required by city.” The property taxes on the home are in the $2,500 per year range and the home may very well come along with a hefty tax or repair bill.
2. $5,000 Memphis, Tennessee House
This home is listed at the $5,000 price point on both Zillow and on Homes.com. The Zillow listing for this home reads: “Lovely one-story home with four spacious bedrooms and two full baths. Kitchen has much storage space with many cabinets. Hardwood floors throughout. Huge living room. Backyard is complete with storage shed and plenty of room for kids or pets to run or play. Minutes from shopping and schools. Come see this house today! *please note this property was built prior to 1978 and there is a potential for lead-based paint to exist.”
The home has 1,750 square feet and it sits on a 4,791 square foot lot. This places the price per square foot on this house at only $3. The interior of this home needs some serious work, though. There is damage to walls and flooring, and it appears to only have half of a kitchen. The surrounding schools have incredibly low ratings, with the elementary school receiving a 2 out of 10 from GreatSchools.org, and the middle and high schools each receiving 2 out of 10 reviews as well. The nearby housing is priced at the same, under $10,00 price point. All in all, this property is certainly a fixer upper. The Zestimate on the home is around $45,000, but it has seen some downward movement.
3. $5,500 McMinnville, Tennessee House
At a first glance, this home looks like a great opportunity. It appears to be a decent looking home on the outside — maybe it just needs a little TLC. Well, unfortunately, looks can be deceiving. Once you dig a little deeper, you find out this one bedroom, one bathroom, 660 square foot home was a meth lab, and it is condemned. What you’re really getting for the $5,500 price is the lot. The lot is 3,920 square feet and the surrounding school districts have mediocre reviews (5 out of 10 from GreatSchools.org).
4. $6,000 Macon, Georgia House
This small Macon home has two bedrooms and one bathroom. Its 720 square foot layout is small, but it’s not in terrible shape. Sure, it needs some work, but this home is the most move-in ready home on this list. You may notice how on the side of the home, there’s a wooden board over one of the windows. On the inside, however, the walls appear in-tact, as does the flooring throughout the home. The kitchen appears to need some work, but there are cabinets and and counter tops in place. The Zillow listing even indicates there’s a fireplace. All of the surrounding schools receive the lowest ratings — 1 out of 10. But the Zestimate on the home is just under $30,000 and this home does appear to be salvageable.
5. $6,300 Shreveport, Louisiana House
“Investors encouraged. Need lots of TLC or may opt to vacate lot and relocate another home. Sq. Ft. to be verified by buyer. Being Sold ‘As Is Where Is With No Warranties,’” reads the Zillow listing for this property. This Shreveport home is barely standing, but for a price of less than $6,500, what would you really expect? It has two bedrooms (well, sort of) and one bathroom. The home has 900 square feet and the Zestimate on it is more than $35,000. Would you pay 6 grand for it?