Fractional Sales

Written by Diane Sievert
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Fractional sales can be simple and lucrative as long as you employ a carefully researched pricing policy. There are some very simple rules to pricing vacation real estate. Read on to learn more about how to take advantage of fractional sales.

My Guide to Fractional Sales

The first thing to do is identify the closest competition in your location. Sometimes this will be other fractional clubs, wholly owned vacation homes and/or a luxury time share. Recognizing your competition will help you determine the appropriate value of your fractional and boost your fractional sales.

Once the value is ascertained, apply a multiplier from 1.5 to 2.0 to the average square foot price of a fully owned vacation home to determine the fractional price of a unit. Market issues will help establish the multiplier. For instance, the more elite and exclusive the location (think Aspen or the Caribbean), the higher the multiplier.

Locales with high construction and land costs will also carry a higher multiplier. Amenities follow the same rule--after all, the more luxury services available, the more costly the upkeep. Follow these guidelines to pricing and you should have no problem making fractional sales.

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