Figuring Out the Terms to a Home Selling Contest

A home selling contest allows a seller to accept entries to purchase a home for a fee. Then, the winner of the contest is awarded the home for a price at only the cost of the entry fee and taxes, where applicable. This model is used when a seller is having a difficult time finding a buyer for a property. The contest entices the public to enter because the potential reward is very high. The terms of the contest, though, will determine both whether it is lawful and whether it is successful.

Contest Term Requirements

Contest terms must meet a few basic requirements: they must be legal, and they must generate enough income to justify the eventual sale of the property. Check with the laws of your state to determine the manner in which you can list and advertise a home selling contest. Next, determine the price of the entrance fee. This part takes some speculation, because you cannot be sure up front how many entries you will receive. If possible, gather market research from real estate agents. You can be as creative as you would like with your contest rules. Some sellers use a straight lottery system, while others ask for poems, stories or videos to ultimately select a winner.

blog comments powered by Disqus