The Ultimate Upgrade or Desperate Downgrade.



Selling Fractional Ownership against Freehold or Vacation Ownership

So the question,

Which is the most effective way to sell Fractional Ownership, is it a desperate Downgrade from Freehold or the ultimate Upgrade from VO?

I know of several companies that work on the first principle and have their respective Real estate teams challenged with selling a fractional product as a downgrade, personally, I’m not convinced that this is the most beneficial approach.

The motivational factors for a client to purchase freehold are normally investment-led and very different from the client who purchases a VO offering,

I believe that Fractional ownership (when sold correctly) is a perfect vacation ownership product, with investment being a very secondary factor and the sales process should follow this accordingly.

To sell any VO product, you must understand your clients needs dreams and aspirations, and then through a structured presentation lead them to the conclusion that your product fits perfectly to those needs.

I don’t necessarily believe that real estate agents work on the same principles or structure, possibly created by the clients desire levels to own freehold property being much higher than the desire to buy a VO product, (which is normally non-existent).

The VO sales agent is used to starting up against a wall, whereas the Real estate agent isn’t, so if you consider this do you really think the freehold client will “downgrade” to a fractional offering, which they will probably see as a Timeshare?


Or is there a greater chance of an upgrade sale with the VO client who wants to combine flexibility with the sense of ownership.

Consider these two scenarios.

Clients A: Want to buy a freehold property in a sunny International location, however, their budget doesn’t match their dreams, do they either revisit the budget and look for something smaller or buy a fraction of a property and the dream?

Clients B: Go to a VO presentation, like the idea but want to own something, do they either buy a freehold or buy fractional ownership in the location that they enjoyed, combining ownership with all associated benefits of the VO offer?

I believe that Clients A will buy nothing and Clients B will buy the fractional.

What do you think will happen?

At VOS we are extremely passionate about the correct selling of Fractional ownership if you have this product and would like to increase your sales why not get in touch with us?

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