Elaine Jolie has written a useful book for consumers, the sub title of which tells you all about it “The Complete Guide to Timeshare, Private Residence Clubs, Fractionals and Destination Clubs”.

If you’ve been on the front lines during a typical fractional real estate sales process you will concur that there are any number of objections that are consistently fired at the sales team. Without going through each and every concern, we can safely say they all have one underlying meaning: “I am uncomfortable with this decision”. Usually buyer discomfort is related to a lack of understanding and experience with the product which is another way of saying “I am worried about the risk”. Heck, nervous buyers will find a way to communicate this trepidation through the thread count of the bed sheets if they have to.  So why does dropping the price remain the first knee-jerk reaction to closing prospects?

We continue to hear the standard explanations as to the stagnant sales of resort real estate developments:

1)     Consumers can’t afford to purchase second home real estate anymore because they took such a hit in their savings and retirement accounts

2)     Consumers can’t justify the expense right now because they are still worried about market turmoil and the possibility of values dropping further. 

3)      I even heard one example of someone who said they wouldn’t buy because it would look bad to their friends; i.e. “rubbing it in their faces”

4)      There is no consumer financing for fractional and until that comes back, nothing will sell.