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Questions from Sellers

Do you want to fractionalize?

The real estate market is strong now, why would I ever consider fractional model?

The number one reason to consider a fractional model for your real estate is because you may be able to double your selling price. Having a brisk real estate market will only help your efforts. Many developers think of fractionals and timeshares and think of the buyers of fractionals as individuals who have less money to spend. Nothing can be further from the truth.

These days educated, smart, affluent people have embraced the fractional real estate model because it allows them to spread their dollars and spend time in the places they want to be, at the times they want to be there. It also allows for hassle-free ownership which owning a property outright does not allow.

Selling fractionals expands your market to many high-wealth individuals who would never have considered buying full ownership in your location due to both the cost and the hassle factor.      

What are the keys to success using a fractional model?

The major key to your success is matching the proper fractional program to your market and property. Taking into consideration things like the correct:

  • Deeded or non-deeded model
  • Fraction %
  • Fractional model type
  • Pricing model
  • Easy to understand purchase contracts, governance, and rules & regulations documents
  • Do what you can to increase your fractional values long-term

There are many things to understand here any of which can derail your best efforts to sell even a wonderful property.

What types of real estate properties thrive with the fractional model?

Luxury vacation properties around the world can thrive going to market with a well-thought-out fractional model.

Is a fractional model the same as breaking my property into parts and selling the parts?

Not at all. The secret to selling a successful fractional program is flawless planning, deep analysis & market knowledge. Something which was complex to put together but because you have great strategic and tactical plans, is something tailored to your buyer’s needs and very easy for them to understand. Only proper knowledge and planning will result in having sales success in this market.  

Why would a developer consider offering fractional properties?

By offering fractional ownership with a flexible and attractive program like Blue Water Fractionals, developers can open up a new market and attract a different group of potential buyers. Shared ownership is significantly less expensive, giving many buyers an opportunity to purchase that would otherwise be lacking. Fractional ownership is a particularly attractive option in a new development, or when whole ownership sales are slow, where additional exposure and ongoing sales are key to the overall success and vitality of the development itself and its amenities (restaurants, golf courses, shops, health clubs, etc.)

Why should I fractionalize my luxury property working in partnership with Blue Water Fractionals?

Working with Blue Water Fractionals to develop a turn-key fractional program gives you a superior way to differentiate your property and attract a new breed of real estate buyer...the fractional buyer! Blue Water Fractionals brands and positions your property to appeal to this new breed of buyer.

  • See more potential buyers due to the lower price point of shared fractional ownership
  • Receive a higher overall selling price than selling your property as a full ownership property
  • Increased focus on your properties due to having a unique program tailored to your needs

 

Tell me more about the fractional buyer

Fractional buyers are very affluent, in fact they are in many respects the same buyers who have been interested in full ownership of your properties they just have a different mid set. The fractional market appeals to people who like owning a vacation home in their favorite location, but realize they will not be spending a significant amount of time there.

The fractional buyer may have several places for which they want to spread their time around in, while not wanting the burden and cost of repairs and upkeep. For example they may wish to spend the Christmas season skiing in Aspen, May diving in Bermuda, February on a boat traveling the Indian Ocean, and September surfing in Hawaii. With the fractional model they can do this for less than the cost of buying one luxury property. Dollar for dollar it's the new way to go for many affluent buyers!

Why shouldn’t I try and fractionalize my condo myself?

At first glance it might seem simple to sell a fractional property, but it is actually quite complex. Having the right property to sell is only the first step. Having the right fractional program tailored to your property is even more important.  It takes a lot of work and a great program to be successful in this business. Trying to create a fractional program of your own with not only be expensive, but it will detract and distract you from your core business which is designing and managing your properties. This is certainly an area you need to leave to the professionals...Us!

Blue Water Fractionals' has 20 years experience in the fractional marketplace. We know every fractional program there is (and there are many!). We can match the right fractional program to your property that will appeal to many off island buyers.

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