Stay Ahead of the Game: Unlocking New Opportunities for Realtors with Fraxioned

September 27, 2024

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Real estate isn't just about properties; it's about people—their emotions and aspirations. It's about understanding their needs and helping them achieve their dreams.

This is why we at Fraxioned work closely with Realtors like you to provide innovative solutions that align with these deeply personal aspects of home ownership. By empowering you with new tools and opportunities, we can collectively make dreams of luxury property ownership a reality for a wider range of clients.

So, are you ready to revolutionize your real estate business?

Don't miss out on the next big trend transforming the vacation home market - fractional ownership. Savvy realtors like you are already embracing this opportunity, and for good reason. With Fraxioned, you can offer your clients an affordable way to own a piece of luxury while expanding your listings and tapping into new markets.

As the demand for luxury vacation homes rises, fractional real estate is quickly becoming the industry's future. This innovative approach allows you to stay ahead of the competition and revolutionize your business. By embracing fractional ownership, you'll position yourself at the forefront of a growing trend reshaping the real estate landscape.

The Current Real Estate Market & Fraxioned's Role

The real estate market is constantly evolving, and today's landscape presents challenges and opportunities for realtors. Property prices continue to climb in many desirable locations, making it increasingly difficult for the average buyer to enter the market, especially for vacation homes and luxury properties.

Additionally, we're seeing significant shifts in buyer preferences. Today's clients seek flexibility, affordability, and hassle-free ownership options. They want the prestige and enjoyment of owning a vacation home without the full financial burden and maintenance responsibilities.

This is where Fraxioned comes in. As a leader in vacation home co-ownership, we simplify the process of turning dream vacation homes into a reality. By revolutionizing how people access and experience luxury vacation properties, Fraxioned transforms common challenges into strategic advantages. Our innovative approach lets your clients co-own their ideal vacation home without the significant costs and complications typically involved.

As a realtor, Fraxioned empowers you to offer unique solutions to your clients that align perfectly with these evolving market trends.

With Fraxioned, you can provide your clients access to high-end properties that might otherwise be out of reach. This co-ownership model allows you to tap into the growing demand for vacation homes while addressing the affordability concerns that many potential buyers face.

The U.S. housing market experienced a significant decline in home sales in 2023, following a surge in 2021. Only four million transactions, including single-family homes, condos, and co-ops, were completed in 2023—down from 6.12 million in 2021. However, the market is expected to recover, with sales projected to reach 5.6 million by 2025.

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Understanding Fractional Ownership

What is Fractional Ownership?

Fractional ownership is a model that allows multiple buyers to co-own a single property. Instead of one person or family bearing the entire cost and responsibility of owning a vacation home, the property is divided into fractions, with each owner purchasing a share.

For example, a luxury beachfront property might be divided into eight fractions. Each fraction represents a share of ownership, typically correlating to a certain usage time per year. This model allows buyers to own a piece of a high-end property without the full financial commitment of traditional ownership.

Benefits of Fractional Ownership

Cost-sharing benefits & Rental Revenue*:
‍ Fractional ownership significantly reduces the upfront cost of purchasing a vacation home. Instead of paying for 100% of a property, buyers only pay for the fraction they own. Additionally, when the property can be rented out when no owners are using it, the rental income is shared among the owners.*‍
Hassle-free ownership & Professional Management:
‍ One of fractional ownership's biggest perks is its hassle-free experience. Professional management companies handle all aspects of property maintenance, from cleaning and repairs to landscaping. This means owners can enjoy their vacation time without worrying about the responsibilities of full property ownership.‍
Growth potential and increased access to luxury vacation homes:
‍ Fractional ownership allows buyers to own shares in multiple properties in different locations, diversifying their vacation options. As the property appreciates, so does the value of each owner's share, providing potential for long-term growth.*

Curious about the fundamentals of fractional ownership? Learn how fractionalizing allows you to co-own luxury properties without the full financial burden. Dive deeper into the concept in our detailed blog post.

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Solving Critical Client Pain Points with Fractional Ownership

Fractional ownership isn't just a trend—it's a solution to real problems buyers and sellers face in the vacation home market. Let's explore how this innovative model addresses critical pain points for your clients.

For Potential Buyers: Overcoming high costs and maintenance concerns

Fractional ownership tackles two significant hurdles that often prevent people from buying vacation homes: high costs and maintenance concerns.

1. High Costs - The dream of owning a vacation home often remains just that—a dream—due to prohibitive costs. Consider this example: A luxurious property in Southern Utah is listed at $4 million. For many, this price tag puts ownership completely out of reach. However, fractional ownership could divide this property into eight fractions, each priced closer to $625,000. Suddenly, owning a slice of the luxurious property becomes attainable for a much broader range of buyers. By dividing the cost among multiple owners, the entry price becomes much more accessible. This allows your clients to own a high-end property in a desirable location they otherwise couldn't afford.

2. Maintenance Concerns - The responsibility of maintaining a second home can be daunting. Fractional ownership eliminates this stress. Here's how: Traditionally, they'd be responsible for year-round maintenance—regular cleaning, repairs, and updates. With fractional ownership, professional management handles all of this. Your clients can enjoy their vacation property without the headaches of upkeep. They simply show up and start their vacation, knowing everything will be in pristine condition.

For Sellers: Utilizing rarely used vacation properties

Fractional ownership isn't just a great opportunity for buyers—it offers unique advantages for sellers, especially those with vacant properties, for much of the year.

Picture a couple nearing retirement who owns a beautiful beach house in Florida. They only use it for a few weeks each summer, and they're considering selling to free up capital for their retirement. However, they're emotionally attached to the property and reluctant to give it up entirely.

Fractional ownership provides a solution:

1. Efficient Use of Property:
‍ Instead of selling the entire home to a single buyer, selling fractions allows for more efficient use of the property. The house that once sat empty for most of the year now provides enjoyment to multiple families, including the sellers who didn’t want to give up their vacation home

2. Potential for Higher Overall Sale Price*:
Selling fractions can yield a higher overall sale price. Here's why: The Florida home is valued at $6,000,000. By dividing it into eight fractions and selling each at $937,500, the total sale price comes to —a 25% premium over the single-buyer price. This premium compensates for the shared nature of ownership and the costs associated with setting up the fractional ownership structure.

3. Retained Partial Ownership:
‍ Sellers can choose to retain a fraction for themselves, allowing them to continue enjoying the property they love while freeing up significant capital.

By offering fractional ownership options, you're not just solving problems—you're opening up new possibilities for your clients. You're helping buyers access luxury properties they thought were out of reach, and providing sellers with innovative ways to maximize the value of their vacation homes.

How Fractional Ownership Helps Realtors Expand Their Reach

Access to High-End Properties
‍ As a realtor, fractional ownership allows you to include luxury properties in your portfolio without focusing exclusively on high-net-worth individuals. You can now offer slices of dream homes to a wider range of clients, expanding your market and increasing your potential for sales.‍
Affordable Ownership for Clients
With fractional ownership, you can show clients how they can own vacation homes with less upfront costs. This makes luxury properties more appealing to a broader audience, increasing your potential client base and the likelihood of closing deals.‍
Broaden Realtor Horizons
This model gives you access to exclusive properties you may not have considered before. You can now explore high-end markets and locations previously out of reach, diversifying your offerings and potentially increasing your commission opportunities.*

Practical Steps for Realtors to Get Started with Fractional Ownership

Evaluate Client Needs

To successfully incorporate fractional ownership into your business, identify which clients might benefit most from this model. Look for:

Clients who have expressed interest in vacation homes but are hesitant about the full cost
Those who want a second home but don't plan to use it year-round
Clients who are looking to diversify their real estate portfolio*

Educate Clients on the Benefits of Fractional Ownership

To effectively promote fractional ownership:

Create informational materials explaining the concept and its benefits
Use real-world examples to illustrate potential savings and returns
Address common concerns and misconceptions about shared ownership
Highlight the flexibility and variety of options available through fractional ownership

Benefits for Realtors

Expanding Client Offerings
By incorporating fractional ownership into your business, you significantly broaden your offerings. You can now provide clients access to luxury homes at a fraction of the cost, appealing to a wider range of buyers and potentially increasing your sales volume.*‍
Engaging New Market Segments
Fractional ownership allows you to tap into new market segments. You can now attract high-net-worth individuals interested in vacation homes but may not want the full expense or commitment. Additionally, you can reach younger buyers or those who previously thought luxury properties were out of their reach.‍
Potential for Increased Commissions
‍ One of the most exciting aspects of fractional ownership for realtors is the potential for increased commissions. By facilitating multiple fractional sales on a single property, you can potentially earn more than you would from a traditional sale. Plus, with Fraxioned, you can earn a 2% referral fee for every sale, providing an additional income stream.*

Wish to learn more? Dive Deep.‍‍

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Your Home Away from Home

At Lake Escape, we've thoughtfully designed every aspect of your stay to ensure maximum comfort and convenience. Here's what awaits you in your slice of Lake Powell paradise:

Breathtaking views - Wake up to stunning vistas of the surrounding landscape. Our windows frame the natural beauty of Lake Powell and the iconic red rock formations, bringing the outdoors in.
Seamless connectivity - Stay connected with high-speed internet. Whether you're sharing vacation photos or catching up on work, you're always just a click away.
Parking paradise - Lake Escape offers multiple parking options, including a private garage for secure storage, ample driveway space, street parking for added convenience, and even dedicated boat parking—because we know that half the fun of Lake Powell is out on the water.

At Lake Escape, we've created more than just a luxury vacation home – we've crafted a base camp for your Arizona adventures. Whether you're lounging indoors, admiring the view, or preparing for a day on the lake, you'll find that every aspect of Lake Escape is designed to enhance your experience of this breathtaking region.

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Discover your dream family vacation home today

View Homes

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Bear Lake Bluffs

Collective

Garden City, UT

$172,000

$Square foot dimensions of fractional home.$

3500

Sq. Ft

$How many bathrooms in fractional vacation home$

Baths



Sleeps

Blue Bear Lake

Collective

Garden City, UT

$72,250

$Square foot dimensions of fractional home.$

2075

Sq. Ft

$How many bathrooms in fractional vacation home$

Baths



Sleeps

Lake Escape

Collective

Page, AZ

$75,750

$Square foot dimensions of fractional home.$

1515

Sq. Ft

$How many bathrooms in fractional vacation home$

Modern Lagoon

Collective

St. George, UT

$339,900

$Square foot dimensions of fractional home.$

6261

Sq. Ft

$How many bathrooms in fractional vacation home$

Baths



Sleeps

St. George Utah vacation home private pool

Paradise Shores

Collective

St. George, UT

$265,000

$Square foot dimensions of fractional home.$

5300

Sq. Ft

$How many bathrooms in fractional vacation home$

Baths



Sleeps

Raspberry Retreat

Collective

Garden City, UT

$225,000

$Square foot dimensions of fractional home.$

4764

Sq. Ft

$How many bathrooms in fractional vacation home$

Baths



Sleeps

Swan Creek

Exclusive

Garden City, UT

$160,000

$Square foot dimensions of fractional home.$

4296

Sq. Ft

$How many bathrooms in fractional vacation home$

Baths



Sleeps

Crown Jewel kitchen St. George Utah Fraxioned

The Crown Jewel

Collective

St. George, UT

$171,000

$Square foot dimensions of fractional home.$

2200

Sq. Ft

$How many bathrooms in fractional vacation home$

The Vue

Collective

St. George, UT

$102,000

$Square foot dimensions of fractional home.$

2564

Sq. Ft

$How many bathrooms in fractional vacation home$

Frequently Asked Questions

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Revolutionize your Real Estate Offerings with Fraxioned

Fractional ownership is revolutionizing the vacation home market, offering exciting opportunities for you and your clients. By embracing this model, you can:

Expand your property offerings to include luxury homes
Provide affordable ownership options to a broader range of clients
Tap into new market segments and diversify your business
Potentially increase your commissions through multiple fractional sales*

Fraxioned provides the guidance and support to easily incorporate fractional ownership into your real estate business, helping you stay ahead of market trends and meet evolving client needs.

Don't let this opportunity pass you by. It's time to revolutionize your real estate offerings and stay ahead of the competition. Explore Fraxioned today and discover how fractional ownership can transform your business.

^{(*)Disclaimer: Fractional share ownership via Fraxionedis not considered an investment. Potential rental income or property value appreciation is incidental to actual ownership. Fraxioned makes no guarantees regarding financial returns. The primary intent is to provide vacation homes for personal use and enjoyment.}