Understanding the Fractional Purchase Price

When you browse our Fractional VR listings, the sale price reflects the cost to purchase a particular fraction of the ownership of the home. This could be 1/4 or 1/6 or 1/8 or 1/10 or 1/12 or 1/26 or 1/52. The fractional purchase price will depend on the factors listed below including time of year and which market you are purchasing in. If you want more ownership of a particular Fractional VR Vacation Home, you can purchase as many fractions as you want, up to ½ ownership of the home. We will determine the sale price of each of the fractions based these costs and factors:

​

• Whole home fair market purchase price as determined by an appraisal done by a independent appraiser. Same process and valuation as a mortgage company would use. So this one is self-explanatory 

• Home upgrades and closing. We upgrade, fix, refurbish and furnish each vacation home using professional contractors and interior designers, essentially giving each of the vacation homes a complete makeover to create an unbelievable vacation experience / home — beautifully and comfortably designed, with all the amenities you need to enjoy your stay. This includes big-ticket items, like high-end furnishings and state-of-the-art appliances, and small details, like board games and handy kitchen gadgets. Our professional interior designers customize each home, and we install the latest home technology and smart home features as well as many "vacation toys" that suit each the location - Examples: Mountain Bikes, Snow Sleds, Beach Toys, Golf Carts and so on.

• Fractional VR service fee. This is one-time fee that is added to cover all the costs of buyer aggregation (finding and vetting the qualified owners), the LLC formation (including legal fees) and HOA documentation, all buyer inspections and closing costs, and the agent fees (Buyer and Seller Agent Commissions.) 

• Fractional Share Price Adjustments. Finally we divide the total costs by the number of fractional shares and then adjust for season, time of year, holidays, high demand months, location of the property and buyer demand. For example: A Fraction VR located in Big Bear mountains (Ski'ing), the January fraction will sell for a higher price than the August fraction and the December Fraction (which includes the Christmas and New Year holidays) will sell for more than both the January fraction and the August fraction. However, a Fractional VR vacation home located in Mission Bay (Ocean) will have a higher fractional price in August than that of January and December and the December fraction will be higher than the January fraction because of the holidays. So, as you can see, the location, vacation demand, time of year determine and buyer demand all go into determining the "fractional share price adjustments" as well as the possible rental income and possible ROI on your investment. Below is a sample table.

Keep in mind, when browsing available fractional listings you can obtain a summary of these costs via a link in the detail listing page for all available Fractional VR. We use the same criteria to estimate the share/fractional price for each of the listing, but the prices may change depending on demand for a particular fraction. So, the prices listed are an estimate and negotiable. Once we have negotiated the final purchase share price we can then move forward to closing. See more on the steps needed to close.

​