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 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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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.
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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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.
To successfully incorporate fractional ownership into your business, identify which clients might benefit most from this model. Look for:
To effectively promote fractional ownership:
Wish to learn more? Dive Deep.
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:
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.
Fractional ownership is revolutionizing the vacation home market, offering exciting opportunities for you and your clients. By embracing this model, you can:
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.
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I honestly thought this place was too good to be true. Until we showed up! Everything was just like the photos, and there was so much to do INSIDE the house, that no one was ever board. We came in for our wedding and had out entire wedding party stay with us. Day of the wedding, i stayed on the 2nd floor playing games the whole time while the bride got ready on the 1st floor (since we couldn't see each other until the ceremony). Everything was neatly laid out and the instruction on how to work the pool/check-in were very clear. This was the best Airbnb i've ever been too, and my friends/family loved everything about it!
What a dream! Ownership with Fraxioned is sensical and hassle-free. We just bring our clothes and get a clean, beautiful home fully ready to dive into our vacation; every time. The rental income has also been very nice to cover the expenses and has been an easy investment to track.
My husband and i had been looking for a good "starter" investment. We wanted to start and airbnb but it was just going to be such a big expense. Fraxioned was the perfect solution, because we were able to purchase 1/8 of a home, instead of the whole thing! Dan Henry sold us a share of a beautiful home in Bear Lake, and he was so nice and easy to work with! He was always available to answer questions and send over information. Definitely would recommend Fraxioned to anyone who is wanting to get into real estate investing, without having to spend your life saving to do it!
What an experience!! The ease of driving up and everything was ready for us. Not just a rental experience but the wonderful feeling of owning the property we vacation in. The team at FRAXIONED is so helpful and always available to handle any needs we have, big or small. we own three shares in two different properties and it is one of the best decisions we have made for our family.