Possible New Model
What are we selling anyway? I sold one house when I first got into the business. I vowed to never do it again. The furnace gave problems, the plumbing leaked, everything went wrong. I had to fight like crazy to hold the deal together. No more selling houses. After that I helped people buy and sell homes. Gradually that expanded to commercial properties, management and international. Those markets are still there; but they have slowed down.
Some international brokers are selling fractionals and off plan properties. Some are working on foreclosures and short sales. These markets don’t appeal to me. Helping people is better than taking advantage of them. 23 years in this business and a lot of really great classes and experiences have packed my head with all kinds of useful stuff. So have my life experiences. What can I do with this to help people and make a living? This has been my dominating question for months now. Maybe the answer is close.
Is there hope for the people who find themselves owning off-plan contracts and fractionals? It is doubtful that there will be a large enough profit to make a commission very attractive to the sellers. How long will it be before an after-market develops in fractionals? What kind of license will be required to deal with this market? Perhaps a brain storm service to help people unload white elephants would work. It could be done on a fee basis instead of commission. That way the broker can help make the deal instead of prevent it.
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
Showing posts with label Fractionals. Show all posts
Showing posts with label Fractionals. Show all posts
Thursday, June 18, 2009
Wednesday, June 17, 2009
Fractionals
Fractionals
Are they really something new or just time shares on steroids? Can we learn from old mistakes even when they are renamed. On he welcome page of OPP magazine, one of my favorite publications, the editor suggest that after the recession, “Off plan” purchases will come back. That would be like a toast to celebrate sobriety. The speculation in “Off plan” purchases are as much a part of the current economic situation as the sub-prime mortgages. Off Plan is the word used in international markets for pre-construction.
Fractional ownership is really great for developers. They sell anywhere from 1/15 to ½ of a unit and still retain control of the property. There are many versions of the fractional ownership plan. Most jurisdictions regulate them the same as time-shares. I guess they think, “if it walks like a duck, and quacks like a duck, etc.” Many of the projects have marinas (boat slips) and other facilities that can also be purchased on a fractional basis. OPP magazine has a big article on fractionals that describes the different types of fractionals and examines the pros and cons. http://www.opp.org.uk/index.asp You must register to read articles; but registration is free.
Whatever the future holds if it is just more of the past, the present will be our new future. Is that what we really want? Any success gained from renaming old mistakes will be short lived. New business models are needed. We are technologically very creative. Can we also be creative in business models rather than just in semantics?
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
Are they really something new or just time shares on steroids? Can we learn from old mistakes even when they are renamed. On he welcome page of OPP magazine, one of my favorite publications, the editor suggest that after the recession, “Off plan” purchases will come back. That would be like a toast to celebrate sobriety. The speculation in “Off plan” purchases are as much a part of the current economic situation as the sub-prime mortgages. Off Plan is the word used in international markets for pre-construction.
Fractional ownership is really great for developers. They sell anywhere from 1/15 to ½ of a unit and still retain control of the property. There are many versions of the fractional ownership plan. Most jurisdictions regulate them the same as time-shares. I guess they think, “if it walks like a duck, and quacks like a duck, etc.” Many of the projects have marinas (boat slips) and other facilities that can also be purchased on a fractional basis. OPP magazine has a big article on fractionals that describes the different types of fractionals and examines the pros and cons. http://www.opp.org.uk/index.asp You must register to read articles; but registration is free.
Whatever the future holds if it is just more of the past, the present will be our new future. Is that what we really want? Any success gained from renaming old mistakes will be short lived. New business models are needed. We are technologically very creative. Can we also be creative in business models rather than just in semantics?
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
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