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What makes a property a viable fractional?

If you are faced with a second home that you aren't utilizing as much as you used to and are considering fractionalizing it. Before you take any action, you need to be sure that your home and its location make a good candidate for a fractional project before you undertake such a project.

1. Is the area your home is located in a popular vacation destination? It should be one of the top vacation destinations in your region in order for you to attract enough qualified buyers.

2. How close is the location of your property to the area's attractions? Owners prefer not to drive too far to experience all the area has to offer.

3. How do people vacation in your region? How many weeks each year and how long at one time? Ideally, your area will have attractive options two or more seasons of the year, eg Fall foliage, golf in the Summer, Skiing in the winter.

4. What size homes are second-home buyers in the area usually looking for? This will vary by region, but generally larger is better. Ideally, your home should have 3 bedrooms, 2 1/2 baths and plenty of space for entertaining and for kids to play.

5. What condition is the home in? A fractional home should be held to the same standards as a first-class hotel with everything fresh, clean and pleasing to the eye with no visible flaws.

Posted by Lisa Rohner Luxury Fractional Guide on 07/21/2007 10:55 PM

Comments (4)

fractional, fractional second home, fractional vacation home, fractional property

4 Comments on What makes a property a viable fractional?

I just had a seller approach me about this. I can't find one buyer to walk through the door of an overpriced property, let alone 4 or 5 of them. It just hasn't caught on here, yet.

07/22/2007 08:24 AM

by Chris Elizabeth Griffith ~ Bonita Springs Fl Real Estate (Keller Williams Elite Realty, Bonita Springs, FL)

Chris - Do you think it's the overall concept or the pricing that's the issue? The beauty of fractionalizing a property is that it greatly expands your pool of buyers, particularly in higher end homes. You may only have 10 people in an area who can afford a multi-million dollar home, but many, many more who can afford a $250,000 or $300,000 price tag. You might be interested in this article about a developer in your area who is now specializing in fractional properties: http://www.condohotelcenter.com/articles/a124.htm. -- Lisa/Luxury Fractional Guide.

07/22/2007 11:07 AM

by Lisa Rohner Luxury Fractional Guide (Luxury Fractional Guide)

I think in this area there is such tremendous wealth it is a non issue, they just want to own their own home. In the issue of the seller I had ask me about it. I feel he is asking buyers to fall for buying a home that is "cookie cutter", overpriced and he is naive to believe that buyers aren't using the same internet that he is using to price and value real estate. You can't put lipstick on a pig.

07/22/2007 11:16 AM

by Chris Elizabeth Griffith ~ Bonita Springs Fl Real Estate (Keller Williams Elite Realty, Bonita Springs, FL)

Lipstick on a pig! I love it!!

I actually see the ultra-wealthy hopping on the fractional bandwagon at a pretty fast pace. What they're doing is purchasing several different very high end fractional property shares in several different locations rather than dealing with the headaches of wholly owned second or third homes.

Florida is one of the biggest markets for fractional real estate (and fractional yachts), but you're right -- I don't see much in your area. South Florida, the Keys and up around Miramar Beach, Pensacola and Destin seem to be the hotspots for it. -- Lisa/Luxury Fractional Guide

07/22/2007 11:34 AM

by Lisa Rohner Luxury Fractional Guide (Luxury Fractional Guide)

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