Paula Gold-Nocella is a Realtor, broker, and developer with more than 20 years of experience in real estate. Her latest venture, Global/Quarters is a fractional real estate brokerage with listings for shared ownership properties around the globe. As fractional ownership expands and new projects break ground around the world, Halogen Guides spoke to her about how fractional real estate is shaking up the traditional role of the real estate agent.

HG: In a down real estate market what strategies work for selling fractional?

Gold-Nocella: In any market fractional sales make sense financially and more so in a down real estate market. If you look at the statistics, on average a homeowner uses their second home approximately 17—21 days a year. The cost of acquisition, mortgage payments, maintenance, taxes, and insurance in whole ownership can be hundreds of thousands of dollars. With fractional ownership you only purchase what you need according to what you will use, and you have deeded ownership. You stand to gain from the appreciation of your asset, all for a fraction of the cost of whole ownership. This is a great strategy in any market, and even more so in a down real estate market when people are looking to cut back economically.

HG: What is the most commonly misunderstood concept of fractional ownership for Realtors?

When first learning about fractional ownership, Realtors and consumers alike often remark that it sounds like a “Timeshare”. This would be the most commonly misunderstood concept of fractional ownership. Fractional ownership is defined as the division of an asset into shares, with real estate the deed is legally divided into shares. The shareholders have usage rights for the specific property in the form of weeks which are governed by an operating agreement or bylaws. This affords the owners control of the property should they need it. The traditional timeshare model we think of when someone mentions “Timeshare” represents a purchase of literally ‚Äútime‚Äù, deeded or not, in a destination location hotel or condominium without the ownership of the real estate asset.

HG: Do you find Realtors understand the difference between the multitudes of vacation home ownership options available today?

Gold-Nocella: No. Realtors are very familiar with the traditional second home sales, and perhaps even the co-ownership model where a couple of people pool resources to buy a second home together. That is about the extent of the majority of Realtors education on the subject of vacation home options. Since Realtors are the eyes and ears of the real estate market, we have an exciting opportunity help raise awareness about these options, which are not limited to Fractional Ownership but include Destination Clubs, Condo Hotels and Private Residence Clubs. In recent years, The National Association of Realtors stated that vacation home ownership is the fastest growing segment of the real estate industry. It is only a matter of time before the Realtor community will have the education necessary to better understand these options, which will help the Developers and Sellers find their Buyers, and help Buyers navigate through these products to find the ideal vacation home option for them.