With housing markets slumping across the country and mortgages becoming harder to obtain, many people are looking at less traditional ways of selling their home. The misery brought on by the failing real estate market has exposed some real creative genius on the part of home owners.

In an effort to reduce the rising foreclosure trends, many are teaming up with non-profit organizations and raffling away their homes. Without a doubt, home raffles are an exciting and different way to sell a property in the midst of this crisis.

When conducted with integrity and in accordance with the current state and local laws, successful home raffles support wealth building for the entire community. They also provide a positive boost to both the housing market and the economy.

…the ultimate goal of any home raffle should be to create a Win-Win-Win scenario in which the housing market benefits: win for the home owner, win for the non-profit organization, and win for the home raffle winner. This can only occur when there is clear understanding of the financial impacts for each party involved.

…when the advertising and promotions are effective, home raffles generate very nice profits above and beyond the appraised value of the home. Case studies show that many non-profit organizations end up with profits in the $100,000 all the way up to $2 million range.

The idea of winning a home with a free and clear mortgage via a raffle often overshadows the important fact that the IRS treats raffle prizes as taxable income.

...this is not a buyer beware but rather a buyer be aware opportunity.

Selecting the right non-profit organization from the outset is one of the most important decisions you’ll make throughout this process. It will be vital to match up with a non-profit organization that has the ability and the drive to accomplish your goals.

“Regardless of the method of sale, we always recommend that home sellers work with a real estate agent who can help them position their home for sale in a competitive marketplace and manage the complexities of the sale — and this would be particularly important in unusual transactions such as a raffle,"

Locating a good lawyer who can efficiently assist with your home raffle venture may not be easy. Don't expect to locate a good lawyer by simply looking in the phone book or reading an advertisement. There's not enough information in these sources to help you make a valid judgment. Here are some approaches you may wish to take:  The following example illustrates that it is critical to consult a lawyer along with state and local government officials for current and accurate information on home raffle laws for your area.

...a reputable Certified Public Accountant should be on hand to monitor the revenue throughout the raffle process and to conduct an audit of the tickets prior to the drawing to certify that every ticket purchased is present.

Many home owners simply wanting to sell their home and not start up a new business may be curious why this book recommends a business planning approach. Well, the answer is really quite simple…raffling a home is complicated and is, on many levels, a business venture. Consider that the average home raffle in the U.S.

• Facilitates 6 figure financial transactions (average is around $350,000) and many 7 figures in the $1 million to $2 million range with significant tax implications
• Requires the recruitment of partners (Real estate agent, Non-profit organization, Lawyer, Certified Public Accountant, etc.)
• Calls for an effective Marketing Strategy and Plan
• Is subject to many state and local legal requirements
• Depends on clear understanding and communication of the related procedures and processes

A well-thought-out business plan will serve as a map for the proposed home raffle...going through the process of writing a business plan will force you to think logically about your strategy. When you're done, you should have a more realistic idea of whether you can make your home raffle idea work and more importantly, whether you really want to...

This chapter (Pitfalls To Avoid) is based on the theory that if you understand what can go wrong, you’ll be in a better position to steer clear of trouble.

“Knowledge gained through experience, if shared, will benefit the work of others.”

While it is important to plan for and wish for the very best in a home raffle, both home owners and non-profit organizations should also prepare and plan for the worst.

…how people feel about charitable gambling may have an impact on your home raffle...it is important to know where a non-profit organization or a community stands on the issue of charitable gambling.