A method and system for conducting an online auction of an item, e.g., real property such as a house, commercial real estate, a vacant lot, etc., are provided. The system and method provides for listing a property of interest for sale via an auction web site. Bidders will buy individual bids to place at least one bid amount on the listed property in an attempt to buy the property far below the fair market value of the property, i.e., the cost of the bid plus the amount of the bid. Once the auction period is closed, the property will be awarded to the bidder with the lowest unique bid. The revenue or proceeds generated from the purchase price of each bid will be used to purchase the property from the seller, provide a fee to the auction web site and provide a fee to the proper government entity.