Fractional Properties Sellers Must Be Realistic About Pricing
Feb
16
Written by:
2/16/2010 4:37 PM
Many people want the convenience of vacation homes, but few people want the hassle of whole ownership or the heartbreak of what multiple weeks of rentals can do to their properties.
For those people, fractional ownership may be the answer to their prayers, as it gives a set number of weeks per year of usage for a fraction of the price. Each owner has a vested interest in the property and wants to see it maintained as he is using his personal residence. That's why most fractional properties make doggies like me stay home.
Unlike a traditional timeshare, there is a market for resales of fractionals, and the value of a fractional follows the value of the whole property market. Unfortunately, some owners do not understand that if the value of properties in the area of his property has decreased 30% in 2008-2009, the value of his fractional has done the same.
A listing of my mom's has recently gone under contract for just about the same percentage less than sales price of 2008 that the area's prices have decreased. To further test that formula, she took what that property may sell for today, added what it may cost to furnish it, divided it by 10 ( the number of owners), and came out with the selling price.
So, remember, it may be the time for you to pick up a great deal on a fractional vacation home, and if you are an owner, be realistic about your pricing!!!