Builders Hold Lotteries for Eager New Homebuyers

In some parts of the country, builders are holding lotteries to decide who gets to purchase homes in their development. This practice has become especially popular in California, where the demand among homebuyers has proven to be enormous. Although builders are thrilled with the large return of buyers to the market, trying to keep up with this surge in demand by building faster and upping inventory has fallen a bit short.
Although lotteries are not the best solution, especially when considering the buyers who turn out empty-handed, homebuilders feel that using lotteries to prioritize purchase ability is the fairest method for potential buyers. They also believe that buyers themselves prefer the lottery system over competitive bidding wars or trying to be the first in line when a home goes on the market.

Read more at the following link:
http://money.cnn.com/2013/04/30/real_estate/home-lotteries/index.html?section=money_realestate&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_realestate+%28Real+Estate%29

Source: MONEY.CNN.com