Co-ownership: the next trend in second home sales

Market Trend

Co-ownership: the next trend in second home sales

It’s not often a real estate agent gets an opportunity to add a new line of business to their portfolio. There are buyers and, well, sellers. While their needs vary, they almost all have one thing in common: They’re buying and selling whole homes. But in the second home market, where most owners use their properties for a few weeks or months each year, owning a whole home can be costly and impractical.

So, what’s that new opportunity? Co-ownership. Specifically, Pacaso’s fully managed co-ownership program that offers sales opportunities for agents and enticing options for their clients. And the new line of business? Second home buyers and sellers who’ve been hesitant to act because they didn’t know co-ownership was a viable option, or couldn’t justify or afford a whole home purchase.

Here’s how real estate pros in three markets have seen their businesses grow since partnering with Pacaso.

One home with 8 owners? Meet Elizabeth Olcott, Keller Williams

Elizabeth Olcott serves the desirable Napa region. With ample vineyards but notoriously limited inventory, Napa is a challenging market for buyers. The idea that Pacaso could expand inventory by selling one home to up to eight owners—at an attractive price point—was an exciting prospect for Elizabeth.

Elizabeth’s first Pacaso listing was a “selldown”—the owner wanted to sell a portion of a second home he was underutilizing. “We listed it on the MLS just like any other listing with the price per ownership share. It went live and I got a ton of calls, easily 75-100.” All the listed shares sold within weeks.

Another client was initially interested in a selldown, but their home wasn’t a good fit for Pacaso. The homeowner hired Elizabeth to sell their whole house instead—for $1.9 million. “I’ve experienced the change in business this can bring. It’s pretty amazing.”

White glove service with Brandi Pratt, The Pratt Group

Palm Springs agent Brandi Pratt understands second home buyers—they make up about 80% of her clients. And when they see the luxurious estates and celebrity compounds that give Palm Springs its glamorous aura, their second home aspirations sometimes exceed their budgets.

Pacaso has given Brandi an ideal offering for these buyers. “Some clients have a minimal budget but want a $5 million estate, so I tell them, ‘Listen, you can be in that $5 million estate for less,’ and that’s quite desirable. That’s the great thing about this model, because these are remarkable properties for a fraction of the cost, and it’s a true white-glove service.”

Buyer interest was overwhelming, and within a few months, she brought her whole team on board to pitch Pacaso’s co-ownership model. “Pacaso has definitely been a benefit to my business financially, and it’s driven leads for the team too.”

Exploring all the options with David Lawson, Engel & Völkers

David Lawson has been working with second home clients in Park City for over two decades, and he knows the majority of homes are underutilized. “Most people use their second homes four to five weeks a year, maybe six. I had one client who only came out for 10 days each year around Christmas.” He’s excited to present clients with an option that better matches their use of the home. “When you have a buyer, you should give them all the opportunities out there.”

And what do the clients think? “In the first week we sold two one-quarter shares and a lead that resulted in a $5 million sale. We have about a dozen inquiries that we think will buy Pacaso or full ownership. It is amazingly good for us. We’re winning all around.”

Mar 31, 2021 Market Trend