Selling your home? Try selling raffle tickets!

ticketsIt may be a very out-of-the-box approach, but some home sellers have decided to take a unique approach to getting their homes sold. With a housing market that is in turmoil, some sellers have decided to sell raffle tickets to get rid of their homes. This practice is not legal in all states, and I am not a lawyer, so you need to check out the laws in your area before considering this idea. Many states will only allow a home raffle if it is carried out by a non-profit organization.

Last year, a couple from Maryland decided to raffle off their home by selling 6,289 tickets for $100 each. The home was appraised at $390,000, and they were able to make a sizeable donation to charity with the overage.

Don’t expect to make a huge profit for yourself. You can usually only gain what the home appraises for, and you still need to pay your mortgages and leins. So, if your home appraises for $300,000, but you owe $200,000 on your mortgage and $50,000 on a second mortgage or line of credit, you would only walk away with the $50,000 that would be left over. The donation to charity would be anything over that.

Appraised value $300,000- $250,000 in mortgages= $50,000 to the homeowner

Tickets sold $500,000-$300,000= $200,000 to charity.

I found a few homes for raffle in Indiana:

  1. the Southlake YMCA and St. Jude home in Crown Point
  2. the Built2Win Dream House in New Palestine  (both listed on USAHomeRaffle.com)
  3. the Easter Seal Home in Evansville

In Laguna Beach, California, they are raffling off a million dollar dream home to benefit the Ocean Institute, with many other prizes available as well.

Hmmmm, thenew  Hendricks Regional Health/YMCA in Avon is looking for donations, I wonder if someone would be willing to build and then raffle a house for them??

This bankrate.com article highlights some of the cons to doing this: http://www.bankrate.com/brm/news/realestateadviser/20080608-home-raffle-a1.asp

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