Selling a Home by Raffle: Why It Rarely Works

Recently in Arizona, a homeowner tried to sell a $1.3M luxury property by raffle—tickets were just $10 each for a chance to win the home. While it drew attention, regulators shut it down, classifying it as illegal gambling.

By contrast, in Texas, a $7M resort was successfully sold on the same platform using a raffle-like approach. The difference? State laws vary widely, causing confusion and tempting sellers to test loopholes.

Why Are Home Raffles Illegal?

While they may look like creative marketing, legally they are complex.

• In most states, paying money for a chance to win a home is considered a lottery, which is heavily regulated.

• Some states allow raffles, but usually only by nonprofits and under strict licensing rules.

• For individuals and for-profit sellers, these schemes are almost always illegal.

  
  

A Safer Alternative: $1 Listings

So what’s the legal way to attract buyers while creating buzz? One popular strategy is the $1 listing.

This doesn’t mean the home actually sells for $1. Instead, it sparks interest and generates competitive bidding. According to Realtor.com, in June 2025, 512 homes were listed at $1, an 82.9% increase from June 2023.

This approach:

• Grabs online attention

• Brings more buyers into the process

• Works like a traditional auction, making it legally sound

  
  

Why Sellers Are Getting Creative

High mortgage rates, growing inventory, and buyer fatigue mean homes aren’t selling as fast as they used to. Even in markets like Chicago, where demand is still steady, the balance between buyers and sellers is shifting.

That’s why sellers are experimenting with marketing—whether through $1 listings, creative storytelling, or unique promotional hooks (for example, a California seller famously used miniature horses to draw attention to their property).

Final Thoughts: Creativity + Legality = Success

Creative marketing can absolutely help a home stand out. But strategies like raffles often bring legal trouble instead of results. Sellers are better off focusing on legal, eye-catching methods like $1 listings or unique marketing campaigns that highlight the property’s story.

In today’s competitive market, positioning is everything—and combining creativity with compliance gives sellers the best chance at a quick, successful sale.

📌 If you’re planning to sell or buy a home, partner with an expert who can build a strategy that leads not just to exposure, but to a signed contract.Chicago BDB | Hansang Chul📞 773-717-2227 | 📧 ChicagoBDB@gmail.com