How to Sell a House by Selling Raffle Tickets
With the decline in home prices in the United States in the past few years, many Americans may owe more on their home than it is now worth. The decline in home prices leaves many Americans with few options regarding selling a home, especially if a homeowner is unable to afford the monthly mortgage payments. However, selling a house through the sale of raffle tickets, with the earnings from the sale after repaying the mortgage going to charity, is a creative method for selling your home quickly.
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Instructions
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Discuss the raffle with a licensed attorney. While many states allow nonprofit organizations to hold raffles for charity, raffling a home is a relatively new phenomenon and the raffle may violate state law.
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Contact a nonprofit organization in the area that will organize and hold a house raffle. Several nonprofit organizations now assist homeowners in the selling of a home. According to USA Home Raffle, the proceeds from the raffle are first used to repay the mortgage, and any remaining balance is a donated to the nonprofit.
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Sign a contingency contract with the nonprofit organization. The contract will include a provision that the nonprofit organization becomes the owner of the property on the condition that the raffle raises enough money to repay the homeowner's mortgage. The contract should also stipulate that the nonprofit organization will handle all marketing associated with the raffle and the nonprofit organization will also hold the raffle.
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Publicize the event in a local newspaper or online. The nonprofit organization will handle the majority of the marketing for the raffle, but the more publicity surrounding the raffle, the more successful it will be.
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Hold an open house and sell raffle tickets. The nonprofit organization will be responsible for selling the raffle tickets and keeping track of all money accumulated during the raffle. However, you may want to have several open houses, including one last open house prior to holding the drawing.
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Watch the nonprofit organization choose a raffle number and contact the winner. After the raffle, the winner will own the home, you will be free from your mortgage and the nonprofit will receive a large donation.
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References
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