Are There Any Drawbacks When the Grand Prize Home is Valued Over a Million Dollars?


Great question—this week I consulted with a homeowner who has a very unique piece of real estate. He owns a beautifully built custom home located in a mountain resort area—the home appraised for $1,200,000. It’s been on the market for over a year, and he hasn’t received one offer. As we all know, this is typical in this down real estate market, and this owner is thinking about raffling the house.

The main consideration, for the homeowner, when you have a high priced home, is that you must find a qualified organization to match. Here’s an example: Ronald McDonald House Charities of San Diego, in 2010, raffled a 1.8 million coastal dream home, and this charity was very successful because it has the strength, the organization, the sponsors, the publicity, and the marketing muscle to pull it off. I think that this charity would want a grand prize home that matches their persona and the number of donors they have.

On the other hand, if you pick a qualified organization with a yearly budget of $50,000, they will probably not have the strength to sell the number of tickets required to pay for a prize valued over $500,000, so this organization will need a grand prize valued in the $200,000 range and a  team of volunteers. The qualified organization running the raffle, and the grand prize, must be a match. Make sense?

To your success!
Diane Giraudo-McDermott

P.S. Did you know that butterflies taste with their feet, and that elephants are the only animals that can’t jump?

Categories : Just the Tips

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What Others Are Saying:

“The book really does take you through the entire process. I feel like Diane holds your hand from beginning to end from qualifying the grand prize home to what happens after the drawing. I’m a homeowner and I’ve had difficulty selling my beautiful home. Now I know what it takes to sell my home in a raffle. I know exactly what type of nonprofit I need to partner with on my house raffle and what to expect. I’m excited to get started.”

-Karen L. Furguson, Homeowner in Tucson, Arizona

"Consulting with Diane by phone has been invaluable. Her knowledge on the subject of house raffles is enormous, and she has really given us a better understanding of the process as we move forward with our house raffle. She has been more than willing to take the time needed in answering all of our questions. After consulting with Diane, we feel we have a much better chance of putting together a successful house raffle and are excited about making it happen."

Chip Thompson, homeowner in Rehoboth, Delaware

"'I Sold My House in a Raffle' is an excellent example of creative marketing. The best marketers think "out of the box" and Diane shows that you can really sell your house in a raffle!"

-Ali Pervex, International Best Selling Author, 'Get Your Black Belt in Marketing', www.blackbeltinmarketing.com

“What a great marketing tool! This is a hot new method to get a property sold. My clients love this idea—I already have my first raffle house lined up. I’ll use Diane’s process to get and sell more listings.”

Jack C. Rosemary – California Real Estate Broker, 26 years experience

“I attended Diane’s workshop on February 27th, and she’s got it all together. Not only does she know how to pull off a house raffle but you can tell that she was a teacher because she knows how to convey the information. She broke the process into bite-size pieces and gave us exercises to complete so we were involved. Before anyone attempts a house raffle, they should attend Diane’s workshop–there’s more to it than one could imagine.”

-Ron Thomas, Real Estate Investor for 20 years, Albuquerque, New Mexico