A Unique Approach to Selling a Home
Jennifer Bailey, 43, and her husband John are taking an unconventional approach to selling their two-bedroom apartment in Rhoscolyn, Anglesey. They are offering the property for just £5 to a lucky buyer. This decision stems from their desire to embrace adventure and think outside the box. The apartment is located on the top floor and features an open plan kitchen, a dining/living room, a small balcony, shared garden, and a private garage. It’s also just a 10-minute walk from the beach and is adjacent to a popular pub called The White Eagle.
The couple moved into the apartment two and a half years ago after relocating from Stockport. Jennifer runs a home décor business, while John works in packaging design. They have no mortgage and have already purchased a bungalow nearby, which they plan to move into once the sale of their current home is complete.
A New Way to Sell Property
Selling the property the traditional way proved challenging, as Jennifer explains. “We tried selling it a year and a half ago, but it’s difficult to sell in Wales at the moment.” To overcome this, they turned to Raffall’s platform, which allows members of the public to buy a ticket for £5 and enter a draw to win the apartment. If they answer a question correctly, they get a chance to win the home.
This method has gained popularity with companies like Omaze, which offer high-value properties through similar mechanisms. However, it’s not without its challenges. The Baileys have set a target of 150,000 tickets, which would generate £750,000 in total revenue. Their apartment is valued at £325,000, so there is potential for profit if all tickets are sold.
Risks and Challenges
Despite the potential rewards, there are several risks involved. Jennifer notes that they do not receive the full value of each ticket. Legal fees and stamp duty, including additional charges, are covered by the couple. These costs can amount to around £24,500 if the winner already owns a home or £7,500 if it’s a first-time buyer.
Raffall takes 10% of the proceeds, and if affiliates sell tickets, they take an additional 75p from each £5 ticket. Affiliates can include social media influencers or local businesses. For example, the pub next door has signed up for a unique QR code, where customers who buy a ticket earn 75p, which the pub plans to donate to charity.
Marketing efforts also come at a cost. The couple has invested in magazine ads, posters, flyers, and professional photography. Despite these efforts, they are still far from breaking even. As of two weeks into the campaign, they had sold 4,298 tickets, generating £21,490. However, their expenses have exceeded this amount, creating some financial concerns.
Legal and Practical Considerations
Selling a property through a raffle-style mechanism comes with legal complexities. According to Robin Edwards, partner at property consultancy firm Curetons, the rules and regulations surrounding raffle sales can be murky. They may fall under gambling laws unless structured carefully. Platforms like Raffall help ensure compliance with legislation and manage payment mechanisms.
Vidyadhar Garapati, CEO of Movers.com, highlights that raffle sales tend to work best for homes with a compelling story or unique location. Standard properties or those needing significant work are less likely to succeed.
Final Thoughts
Despite the challenges, Jennifer remains optimistic about the process. She acknowledges the stress involved but believes the experience is rewarding. “It’s stressful. This is all I’ve done this week,” she says. While the outcome is uncertain, the couple is committed to giving someone a chance to own a piece of their home and enjoy the location.