CNBC: French town Saint-Amand-Montrond selling house for 1 euro — applications are open, but there’s a catch

For a few years now, countries all over the world have gone viral for selling off abandoned or dilapidated properties for around $1 dollar — an often symbolic price.

The point of these schemes is to attract buyers and help reverse shrinking populations. Towns in Italy have done it several times and now a small town in France is taking a second run at their own $1 home program.

The French town of Saint-Amand-Montrond is selling an 828-square-foot house for 1 euro or $1.07 USD. It’s a two-level house with two bedrooms and one and a half bathrooms. The property also includes a courtyard and a garage, according to Ouest France, and is located in the city centre of the small town.

Much like with some of the other deals in Europe, this house needs serious work. It hasn’t been lived in for 12 years, and the town estimates it will cost about $136,180 USD to renovate.

Interested homebuyers should also be prepared to eventually relocate to Saint-Amand-Montrond.

The town of around 9,000 people is looking for the new owner of the house to be “a serious candidate who has a life plan in Saint-Amand-Montrond, who really wants to settle there,” Francis Blondieau, deputy in charge of Urban Planning, told Ouest France.

“This system aims to encourage the renovation of old buildings, to reduce the number of vacant housing and above all to revitalize the city centre,” he said.

Applications opened on April 1 and will be accepted until June 15. Those interested in applying must include renovation plans and detailed information about financing in their application packages.

Though it is not mandated, Blondieau told the French newspaper he suggests sending a cover letter that details the plan for the property with your application. The town is serious about the buyer’s ability to create a life in Saint-Amand-Montrond for years to come.

According to the application, anyone looking to make the property a second home or rent it out will be rejected. The town wants someone to live in the home for at least 10 years.

“The goal is for the new owner to participate in the life of the neighbourhood,” Blondieau said.

Prospective buyers can visit the property starting on May 15. After that, the town hopes to select the new homeowner by September and have deeds signed in January 2025.

Once the deed is signed, renovations must begin within five months and be completed by July 2028.

The selected buyer will be eligible to apply for financial assistance to renovate the property but must meet several criteria stipulated in the application, including using local craftsmen for the work.

It’s the second time Saint-Amand-Montrond has done this. The first was in 2021, and over 90 people applied, Blondieau told Ouest France.

In the end, it went to a family that never saw the property in person, the French newspaper reported. Their renovations are on track to be completed by 2025.

Conversions to USD were done on April 22, 2024, using OANDA conversion rates of 1 euro to 1.07 USD. All amounts are rounded to the nearest dollar.