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If you have clients searching for a second home, put a star on your calendar for Nov. 24, 2023.
On Black Friday and the subsequent Cyber Monday annual shopping holidays this year, second-home co-ownership solution Pacaso will offer zero percent interest (0%) on shares in select homes within its marketplace for the first three years of ownership. And, in the tradition of promotional sales parlance, the deal will be available only “while supplies last,” and include a seven-year pay-off.
Pacaso said in an email sent to Inman that it hopes this incentive will further promote fractional affordability within the second-home market, as well as showcase a few of its more unique properties.
Six homes are part of the program, including Santa Cruz’s Boardwalk; North Lake Tahoe’s Wood Creek; Desert Creek in the high desert enclave of Cave Creek, Arizona; South Lake Tahoe’s Monument Peak; Riviera in Santa Barbara; and Bennett in wine country’s coveted Calistoga.
Pacaso sells shares of second homes, typically in 1/8 portions. Buyers, who become co-owners with clear shared use plans, can purchase a larger share, depending on the property.
Agents are paid commissions according to their market’s commonly agreed-upon percentage, as well as offered RSU (restricted stock units) in the company, which also looks to hire teams of local vendors to supply and care for its properties.
Pacaso is evolving into a marketplace of sorts, stimulating additional market activity with the resale of its shares. Its mobile app assists in marketing availability to existing owners first, as do listing agents on record for each home.
The company reported to Inman that “homes in the Pacaso marketplace resale for an average gain of [slightly over] 10 percent.“ Sellers report not using their share enough as the reason they sell, but, according to Pacaso, ”three of four sellers would co-own again in the future.“
“In August 2023, Pacaso recorded its strongest month of the year so far, recording a 142 percent increase in funded shares compared to July 2023,” an email to Inman stated.
Pacaso is tracking its resale market and found that Hilton Head, South Carolina, leads in gains at 43.1 percent, followed by Napa and Sonoma, California, with 23.1 percent. Park City, Utah, and two other California destinations, Palm Springs and Malibu, each offer about 17 percent ROI, Pacaso found.
Pacaso CEO and co-founder Austin Allison commented in September on his company’s resale market, calling its success a reflection of the ease of co-ownership of second homes.
“The markets within our vibrant marketplace are frequently characterized by listing prices that may be out of reach to many aspiring second homeowners,” said Allison. “Our co-ownership model not only reduces the entry threshold for buyers to access these coveted destinations, but with Pacaso, it’s easy to get in, a breeze to own, and easy to get out. All parts of the process are streamlined. Buyers have confidence that, if life changes, they can sell their Pacaso with ease, and historical data shows it’s not just a sale — it’s a gain! A win all around.”
The company celebrated its third anniversary on Oct. 1 of this year.
