I received this email this morning from the owners of a home in Edgewater, MD who are auctioning off their house. While they have had to delay the sale for a couple of weeks it does appear that they're going to pull it off, and the charity will be the big winner.
Interesting to note...the winner will receive a 1099 for income reporting purposes. The house was appraised for over a million dollars.
You are receiving this email because you have been identified as someone involved with Real Estate and we would like your input. My name is Tom Walters and my wife and I are selling our home in a unique way…we have partnered with a local Maryland-based charity and we are raffling it!
Tickets are selling well and we have sold quite a few tickets to people involved in real estate, which is why you are receiving this email.
People are more likely to invest in what they know, and you know real estate. We need to sell at least 27,000 tickets to have the drawing on the 23rd and we are getting close but we have a few more to sell, so we are asking for two things:
1. Buy a ticket. Your odds are much better than the lottery! Just go
to http://www.fiftydollarhouse.com/
You may buy as many as you like.
2. Please give us your ideas/changes. We have learned quite a bit
during this process and will definitely make some changes the next
time, but getting input from those that know real estate (and more
importantly, how to sell real estate) would be a tremendous help.
There have been many studies done and papers written on the “Wisdom of Crowds” and this crowd has a great deal of real estate wisdom. If you purchase a ticket and note in the “Company” box of the payment page “please send me ideas and changes”, I will compile all of the input and forward it to you. We have received quite a few emails and phone calls from homeowners and agents who would like to do the same thing, and there is no reason to reinvent the wheel. If you have already purchased a ticket, just email the request for the ideas and changes.
To purchase tickets, and for more information go to http://www.fiftydollarhouse.com/
Thanks and Good Luck!
Richard Iarossi, REALTOR®
Long and Foster® Real Estate, Inc.
Crofton, MD 21114
410-451-6255 Office
443-995-9595 Cell
Web: http://www.RichSellsHomes.com
eMail: Rich@RichSellsHomes.com
Annapolis MD Real Estate Specialist
Bowie MD Real Estate Specialist
Crofton MD Real Estate Specialist
©2008 - RichSellsHomes, All Rights Reserved
Rich Iarossi is a full time licensed REALTOR®, working in Crofton, MD. My coverage areas are: Anne Arundel, Prince George’s, Howard, Calvert, Queen Anne, and Baltimore City and County. I specialize in residential real estate, working with both buyers and sellers. Use the registration free search on my website at www.RichSellsHomes.com. If you’re not already working with a REALTOR®...I can help. Call me at 443-995-9595 (Cell) or 410-451-6255 (Office).
SKYPE ME: RichSellsHomes
Now that is a great way to sell a house - 50 bucks a pop! I saw another active rainer in MO doing the same thing.
Could this be the wave of the future? Interesting concept. I hope they sell all the tickets.
So, if they don't sell 27,000 tickets will they pull a winner anyway? Or will they call everyone to give them back their $50? Interesting.
That is an interesting concept. Great opportunity to buy a house on the cheap!
Ounce on the 1099. That does talk the celebration out a little but I guess it is better than a 30 year note. Did you buy one? I would have a problem with giving these folks advice the cart is already before the horse.
'I have heard a lot about this, I am not sure of the lottery / sweepstakes rules in your state, here in arizona, you h ave to put the giveaway through some sort of non-profit corporation to make it legal
Heather, I don't think its the wave of the future. If I'm not mistaken they did try to sell the home in the traditional way but were unsuccessful.
Ellie, They're close but there doesn't appear to be anything stopping them from pushing back the date again if they need to.
Tony/Darcy, Yes, but someday soon the tax man cometh.
Brenda, The tax bill has to be somewhere around $300K or better.
James, I believe they did have to transfer the ownership to a charity.
Each to their own. I'm curious in this market whether the charity wants the liabilty of a home to maintain and how many people can afford the gift tax on the deal. Appraised value vs market value how are they going to decide that question on the 1099?
The last time real estate slowed down in our neck of the woods, in the late 1980s, there were several of these in New Hampshire that I recall. I don't believe Massachusetts, where I'm from, allows them. I didn't own a house at the time and for that reason and because both houses were very old and interesting I was obsessed for a bit. Neither raffle was successful and that's not unusual apparently. Definitely gets the fantasies going though - and it's true - the odds are so much better than the lottery!
Liz
HI RICHARD! Well - I like different! If you're going to have to let it go - you might as well go and do something good in the process! -- Gabrielle
Richard - not sure if this is legal as it is indeed a "lottery" because they are charging for tickets.
I think they would need to get permission from the State to do this.
This does sound like a lottery, I am quite sure it would not be allowed here in Michigan. Interesting! I hope the are successful in selling 27,000 tickets. They would have a mess on their hands if they fell short of their goal.
Shawn Davis
Cindy, The winner of the lottery will have to pay a tax based on the appraised value which came in at just over 1.2M.
Elizabeth, During difficult times people get creative. The few who are successful get a lot of press.
Gabrielle, This is only the second one I've heard about in MD in the last couple of years. It is different.
Mark, It is illegal for an individual to use a lottery but a charity can use it twice a year.
Shawn, I'm pretty sure they will reach their goal. Only a few thousand left and people are gamblers.
Hi Rich:
I've heard of this before. Very interesting...
I am going straight to that website and buying a chance at a house in Edgewater. I think that is pretty cool. The taxes might not be so good, but you never know.
Glad I read your comment to James about the transfer of title to a charity. That was the "red flag" I was wondering about. Good post, Richard. ~Pat
Richard, The question is who is the lien holder? Do the people own the house free and clear? I have seen these raffle/auctions before and they end up in court. You're right, it is interesting. Keep us posted!