€1 homes.

Chances are, you've heard about these. Whether on news reports, social media posst, or online articles, €1 homes are a quick attention grabber.

And if, for whatever reason, you didn't stumble over these homes, I'll give you a brief overview. The trend started in Italy, where cities, often with an older, dwindling population, began offering vacant homes for just €1.

Cities and governments offering these deals required some kind of financial investment in return for the nearly free home. In Italy, for example, after purchasing the property you would need to obtain the necessary permissions and contracts, begin renovations within two months, and pay some kind of "guarantee." The guarantee would be money you'd receive back after the renovation, so you might end up paying a few thousand euro upfront in exchange for a front door key and the deed.

The lure of additional residents and outsider money spurred other countries like Croatia, Greece, and Spain to offer similar opportunities. Even some communities around Japan are selling abandoned properties for dirt cheap. These neighborhoods believe it is better to essentially give the house away if it means instant tenants and eventually upgraded homes, instead of letting the house sit vacant for possibly years on end.

If you've ever wondered if these are good deals, if it's a viable option, or if there are better alternatives, here's what you need to know.

What's the Catch?

There's no catch. Well, not exactly.

Yes, you really can purchase a home for €1. And yes, there are properties near coastlines and in the heart of Italian villages in Sicily.

The closest thing there is to a "catch" is you usually have to begin renovation sooner, rather than later, and complete the project in a few years (every city has different rules).

The entire reason for selling the home at next-to-nothing is to bring in new residents and beautify the property as quickly as possible. To make sure buyers don't simply sit on the home, there is usually some kind of a policy guarantee, where you have to put down a small amount of money (typically a few thousand euros). This is money you will forfeit if renovations haven't been completed by an established date.

Some villages require you to live in the newly renovated home, although others allow you to use it as a vacation house or rental property. That is on a city-by-city basis. So, if there is a catch, it is this.

Home Quality

You're not exactly starting from scratch, but it's close.

This is specifically the case when looking at homes in Italy, Croatia, Greece, and the like (abandoned homes currently for sale in Japan, at least from my research, are generally in far better shape).

Often these are houses are without functioning utilities. While the exteriors are rustic, the interiors are often overgrown with weeds, have collapsed portions around stairs, with all kinds of rubble and debris throughout. Basically, you have the walls (hopefully) of the building, and, from there, it might be a total redo.

It's hard to complain when you're essentially being given a home for free, but there's a ton of work to do. And most of the work you won't be able to do on your own. You'll need contractors who understand how to work with the local stone, as well as how to maintain the often ancient forms of architecture. You'll be able to add your own finishing touches of paint and some superficial renovations but in terms of work, the majority of it will need to be completed by hired hands.

A Better Option

With most of the €1 homes, it's almost worse than starting from scratch. The homes may need new stairs, and some areas of the property might need to be dug out depending on the current condition of the home. You will spend thousands of euros, if not more, just to clean the property before renovations can begin.

The property will by no means be habitable upon buying it, which means you'll either need to pay a contractor to handle work while you're gone, or you'll need to secure alternative housing while work is being done (more on contractor work in a bit).

All of this can add up quickly.

Instead, it's far more desirable to consider a property that costs €20K-€30K. While these homes might not come with that next-to-nothing price tag, these particular properties are almost always habitable. Yes, they will need work, but you can live in the property while it's being renovated.

In all likelihood, you'd spend far more than €20K-30K on the €1 homes before you could move in.

This first set of photos is of a €1 home currently for sale in Sicily (it also has a €2,500 deposit). As you can see, it needs considerable work, and this is in significantly better shape than the average €1 home.

The second set of photos is from a home costing €25,000 (also in Sicily). Sure, it needs noticeable work, but it is a habitable property you can live in immediately. It also doesn't come with a deposit, nor do you have a set time to complete renovations.

You're Not in the U.S. Any Longer

Whenever it comes to purchasing any kind of international real estate, it is important to keep in mind the buying process doesn't work like it does in the U.S.

Now, because these houses at best cost a single euro, and at worst €20K-€40K, you're probably going to skip out on a few of the issues that arise with buying more expensive properties. Specifically houses in Italy, Greece, and Spain. It's not unheard of to offer the asking price, a preliminary agreement to be made, and then the seller to ask for more, or to sit on the contract for weeks (or longer), or for some kind of other situation to pop up.

However, with the kind of properties we're talking about, that likely won't be a problem. That's because these homes are usually being sold by the city. The city wants to offload the houses as soon as possible, so the purchase process will likely be expedited. At least compared to a normal real estate purchase.

Instead, the issues you're more likely to run into have to deal with local contractors. Many of these bargain properties are in smaller villages, so bringing contractors in to look at the home will take time, and many work on a "loose" schedule. As is, they'll tell you a time, and they might show up. They might be late, and they might have an excuse as to what happened.

I wasn't the biggest fan of the book, "Under the Tuscan Sun" by Frances Mayes. The non-fiction memoir is basically about a wealthy woman buying a large vacation villa in Italy. There's little to no drama in the book and no reason to root for the main character (the author), but Frances does do a good job explaining the difficulties of working with local contractors in remote areas of Italy.

They often aren't reliable, schedules are more suggestion than reality, things will go over budget, and you might need to frequently check the work to make sure you're getting what you asked for. If you're considering buying any kind of renovation project property, I'd recommend giving that book a read. Again, not for the story itself, but for what to expect.

A Fun Project…If You Have the Time (And A Little Money)

Buying a fixer-upper home in a foreign country can be stressful. It's a lot of work and it'll likely take a lot of time to have it up to your dream standards. But it can also be a lot of fun. You'll have nearly complete control over how you renovate your property and turn it into the perfect vacation home. Or, maybe you decide to turn it into your forever home. Some countries speed up the residency/citizenship process if you own your own home (and it's habitable).

While I would recommend opting for a property that costs a bit more than the €1 price tag, there's likely something out there with your name on it. That is, if you're willing to take up the exhausting, but fun, challenge.

Enjoy what you've read, are interested in moving overseas, and don't know where to begin? No problem! I wrote "7 Steps To Move Out of the U.S.," to help.

Have your sights set on Europe? My "7 Steps to Move to Europe" can help as well!