Once upon a time, the best prize you could hope to win on a raffle was a hamper. Now people are winning actual houses on them in what is becoming an increasingly popular selling method. So should you raffle your home? Here we look at the pros and cons to raffling a house, and why more people are looking into it.
What does it mean to raffle your home?
House raffles tend to be held by owners who are struggling to sell their property.
They typically involve properties that have no mortgage, and work in exactly the same way a normal raffle would.
Excited punters buy a ticket (or tickets). A draw is made as soon as a predetermined number of tickets are sold. One lucky winner then walks away one house richer.
The seller has sold their house without having to deal with any estate agents, and somebody has picked up the keys to their new home for as little as £5. Win-win.
In 2017, a woman won an £845,000 Lancashire manor house after spending £20 on raffle tickets.
While house raffles are growing in popularity, a grey area does exist around what is a relatively new phenomenon.
The Gambling Commission states that raffles cannot be run for profit, and instead can only be run for good causes, like charities.
However, prize competitions – where participants must demonstrate skill or knowledge in order to potentially win – are completely fine for sellers wishing to make a profit.
This is why you will often see house raffle sellers asking people to answer a quiz question before purchasing a ticket, turning the lottery into a competition.
The Pros of raffling your home
– Alternative way of selling in a stagnant market.
– Opportunity to make thousands more than the recommended price.
– Removes the hassle of having to deal with estate agents.
– House hunters could end up winning a property worth £200,000 for £2.
– The novelty around house raffles means there’s a real possibility of them going viral. Big bonus for sellers who are trying to generate interest and ticket sales.
The Cons of raffling your home
– Complicated rulings around house raffles can make them a legal minefield, possibly resulting in a hefty fine.
– A solicitor will need to be hired to ensure everything is above board.
– Enough tickets have to be sold in order to make it worthwhile for the seller. The higher the ticket price is, the harder they will be to sell. Chances of winning are slim, so may not be attractive to buyers.
– Not suitable if there is still a mortgage on the house.
– Drumming up interest can be time consuming and costly.
Property raffle alternatives for a quick house sale
With plenty of legal risk involved, and no guarantee the house will even sell, raffles are not everybody’s cup of tea.
Selling through Hull Cash Buyers, on the other hand, is anything but a gamble.
We specialise in selling properties fast, and will offer money for your property within an hour of viewing it…regardless of condition.
Put the raffle book down, pick up the phone or fill out an enquiry form, and let one of our specialist property consultants win you over.