The auction format itself is inherently more novelty in nature and I just don’t think your average buyer is going to be willing to deal with the added chance variable to what is already a somewhat complicate buying process.

I think that this format has more viability when its selling consumer goods as several sites are currently doing. I just think the mindset between homebuying vs electronics buying is different enough that it will cause them problems.
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Interesting how each country seems to have a different take on this, I came across this ‘treasure hunt’ type contest in France: http://winahous...asure-tube.html

From swoopo they have taken the bidding against the clock and the bid goes up in increments and the timer starts again. Though swoopo make a charge for every bid and make money that way.

From humraz they have stolen the pay for a ’seat’ idea. Except humraz don’t charge anyone for the seat until there are enough people signed-up so if there is no auction no one pays. Also there you don’t pay the final bid price, so the seat price is all you pay.

You’re right Jason it is taking a long time on Humraz and they have had way more publicity than these people so I would question whether ibidcondo have actually ’sold’ anyhthing.

When was the last time you looked at the humraz site, I’ve signed up for the apartment in London and am trying to spread the word so that others sign-up too so that the bloody auction will start. BUT AT LEAST I HAVEN’T PAID ANYTHING.

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Otherwise, the economic theory behind such sites would drive the price up to at least the actual price, if not beyond.

This is obviously not good for the auction sites as their business would dry up. Thus it is decided almost entirely by chance amoung the hundreds of bidders clicking in the final seconds.

Also, the bidding is controlled by a timer. Our last auction lasted only 20 minutes, therefore there are only so many bids to be submitted in that time period.

I think it will be regulated like gambling though, because all the same social problems are there: the first time some retiree blows his pension on a failed condo bid, that’ll be the end of this model for big-ticket items.

As they are usually considered auctions or skill-based competitions, they are legal in many jurisdictions. One of the benefits from a player’s perspective when it relies on selling ’seats’ in advance is that unlike a normal auction, the winning bid usually doesn’t have to be paid (just the price of the ’seat’).

As a number of people have noted, the flipside is that this relies on attracting a large number of entries for such a big prize.

I’m sure we will continue to see more of these types of house competitions given many payment providers seem to be comfortable with this business model (as opposed to certain other types of skill-based competitions).

Imagine how that would make you feel.