The reverse auction

Reporter: Gavin Alder
Broadcast Date: November 07, 2007

There used to be many expensive ways to get finance for a home, as groups competed for your mortgage dollar but there could be another way.

With a paper valuation of around $350 000, views, a pool, close to transport, and shopping centres, one Gold Coast unit offered through a competition is up for offers.

People place bids on the unit, but unlike a usual auction, the lowest unique bid wins. Each bid costs $5.

The absolute maximum bid is up to $17,000.

On the www.uniquebidhomes.com.au website, people place a bid for $5 but if it is lower than the bid you have entered (e.g. $10.60) the website will tell you.

But the odds are pretty high, with 1.7 million bids between 1 cent and $17,000.

Christopher Zinn from Choice said it is not gambling.

'It's certainly not gambling because a company would not be able to run this if that was the case,' he said.

Phyllis Dunn from Unique Bid Homes said the company has put in place responsible guidelines.

With millions being gambled and lost on just one horse race today, bidding for the unit is a gamble with limitations.

Each bid costs $5 but no one can make any more than 20 bids per week.

The company makes its money with the expectation the number of bids will exceed the value of the unit.

The unique bid reverse auction closes on December 3.