A real estate investor from Phoenix, Ariz. is trying for the second time to auction off his 4-bedroom abode for just $0.01 per bid.As ABC News reported, Talbot took his first stab at an auction in mid-March. At the time he was selling bid packets from $60 to $6,000, but with a high bid of only 15 cents, he’s come up with a new strategy.
He listed the house on BidAbode.com and is selling 1,000 seats worth $150 a pop. He won’t start the auction until he sells all of the seats, he told the Orange County Register.
The last time we checked there were still 969 seats available. Talbot plans to cap the bids at $5,000 but stands to pocket $150,000 if all seats sell.
It’s a pretty innovative idea – it could be the first time a penny auction has ever been used in real estate – but there’s no telling how it will pan out.
Penny auctions give people the chance to pay a non-refundable fee in order to place very small bids on a big-ticket item.
Such auctions have already proven to be popular for items like gadgets and gift cards.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.