Sale by contest?!?

[motivatedceo]

As long as you don't get caught, it's legal --- some might say.

But in Texas the law is very clear. It's illegal unless you are a charity - and even then it is restricted in several ways. I just bounced this off one of my lawyer friends and the purveyors of the DFW ad will possibly get a fine and/or go to jail if they get caught [don't worry, I'm in DFW and I will not turn them in].

See

http://www.oag.state.tx.us/ag_publications/txts/raffle.shtml

[wallacehobbs]

Ok, so my cliff notes after reading ALL the post is a Raffle is not legal unless you're a non-profit.

Why not sell your home like the rest of the world mostly does, AU, Europe, etc.

By Auction?

Anyone have a lot of experience selling by Auctions?

[Rich_in_CT]

One member here is quite involved in auctions, I forget his name.  Hopefully he'll chime in.

[Roger J]

I believe that is reiauctions Rich.    Maybe he'll see the post and chime in.

Actually, Wallace, auctions are gaining in popularity around the U.S.

The main "problem" with using auctions to sell your properties here (beling locally) that I've seen is that 'pretty' houses don't do well as compared to 'standard' sale.  On the other end of the spectrum, 'dumps' (props needing major rehab) don't sale well either.  What seems to work best is the PP&C (patch, paint, carpet) homes in livable condition.  Around here, I've seen auction sales that netted the seller 10-30% MORE than they would have on the MLS, and it's done in weeks, not months.

I've currently got a property that I've been considering putting on the auction block, but I feel that based on what I've got in it, I won't be happy with the offers that I would probably receive on an auction, which brings up another possible downside to an auction.  If you 'no sale' the property, you still owe the auctioneer.

Raj

[Rich_in_CT]

Yes Raj, that's his name.  It was on the tip of my tongue.

[wallacehobbs]

I believe that is reiauctions Rich.    Maybe he'll see the post and chime in.

Actually, Wallace, auctions are gaining in popularity around the U.S.

The main "problem" with using auctions to sell your properties here (beling locally) that I've seen is that 'pretty' houses don't do well as compared to 'standard' sale.  On the other end of the spectrum, 'dumps' (props needing major rehab) don't sale well either.  What seems to work best is the PP&C (patch, paint, carpet) homes in livable condition.  Around here, I've seen auction sales that netted the seller 10-30% MORE than they would have on the MLS, and it's done in weeks, not months.

I've currently got a property that I've been considering putting on the auction block, but I feel that based on what I've got in it, I won't be happy with the offers that I would probably receive on an auction, which brings up another possible downside to an auction.  If you 'no sale' the property, you still owe the auctioneer.

Raj

Raj,

Thanks, the reason I ask is I just went to Clearwater beach recently to a high end area called Island Estate's with the intent to purchase a winter home for the wife and I. The house up for Auction among 8 other properites I had interest in was a 3800 Sq foot home 4/3.5/2 on 80 foot of deep water canal that was worth (by CMA's) $1.27 Million.

Of course I was hoping to get it for a lot less! Since taxes are so HIGH in Florida and insurance!

The Bids reached $892,000 and stopped and was not sold because it had a sellers reserve.

I was amazed that there were well over 100 bidders there who must have had experience doing this because they did not over bid.

It was actually my first action but I really like the idea and want to go to more after some due dilligence on it and was hoping maybe someone here could share some experiences.

Also on a side note I do appreciate feedback from folks who are full time investors and make their living off of Real Estate.  Sometimes you feel really alone out here since I am basically a one man office.

[rama1]

I'd been on couple auctions. You should be really experienced and do your homework because auction house distributed their comparables that were way out of real price. In any case, auctioneers are squeezing a money from you, I kid you not! It was an ugly at some point, likely, my clients got their house at price they wanted. Anyway, there is a lot of gray area. For example, auction house could say or not say if this house has a reserve on it. That also happened with my friend from the office -- they thought they won, but auction house announced that had a reserve. Many people heard it wasn't mentioned before. It is just a warning message about how tricky it could be.