Is it legal to sell a house this way?

[Spaghetti]

A website is selling property based on a winnng bid of less than 5% of the property value. Each bid costs $5. The property for auction is valued at about $350,000.

If this website for eg attracted 50,000 people at an average spend of $20 each they would realise 1 mil in bids alone.

Sounds like a raffle to me, however it isn't and no closing date is specified.

Wonder if I should start an auction for my house

 

[Spaghetti]

They do specifiy a closing date however it is dependant on the required number of bids received.

 

[tech/a]

Interesting concept.

Could be under the radar of state lottery laws.
But then again its a cost to bid/tender.
If you got something for your $5 like a DVD of the site for example then it may not come under and Gambling type laws if in actual fact it does?

Of course then if there was a bid tendered which reached the reserve after a few bids then job done.
If its purely a money making idea without intention to sell the number of bids clause sounds a bit suss.

Like it its outside the square.
If for arguements sake they want to make $400k the sale price and they get
20000 bids the winning bid could theoretically be $300,000.
40,000 bids $200,000 etc.

be interesting to hear someone who has legal knowledge on the topic.

Everyone wins!

The mind boggles you could do it with anything.
I have a few trucks/excavators I could put up!!

 

[IFocus]

Happen here a in WA number of years ago, was run through the papers and there was a bit of who ha but cannot remember the outcome. As far as i rember the winners got the house.