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Selldown homeowners: Jay and Michael
Jay and Michael, both San Francisco-based design and event professionals, owned a second home in Napa Valley. Although they didn’t stay there often, they felt an emotional connection to the home.
“The house we sold through Pacaso was the first house we had redone together as designers,” Michael noted, “and it was hard to think about letting it go. So it was really valuable to be able to sell shares and keep a connection to the home.”
Jay and Michael worked hard to create the second home of their dreams, and they appreciated having a place where they could get away and relax that truly felt like home. Still, they didn’t spend as much time at the house as they had expected, and when they considered the expense and maintenance responsibilities, they wondered if it was time to sell — but they also didn’t want to give up the home they’d put so much of their hearts into.
When they discovered Pacaso, which allowed them to retain partial ownership, it felt like an ideal solution. Jay said selling to Pacaso was an easy choice.
“It enabled us to sell a few shares and have money in our pockets, but hang on to the house a little longer too. We could still have time in the home but without the headaches of maintaining it.”
For Jay and Michael, the sales process was what every seller hopes for, but rarely experiences: fast, simple and efficient. They retained three ownership shares and sold five, at the price they wanted — in less than a month.
“Working with the Pacaso team was fantastic,” said Michael. “The whole process was seamless, the timeline was quick, the information they gave us was concise, and it was very stress-free compared to what we've experienced working with traditional real estate companies in the past.”
Like a traditional sale, a seller works with their agent who markets the shares and lists the home on the MLS (and on Pacaso’s website), and the seller has the final say when it comes to pricing and accepting offers.
“The seller is in full control — they come to us and tell us what price they want, working in collaboration with their agent, and then they go to market,” said Andreas Madsen, Pacaso’s chief revenue officer. “There are already buyers in the pipeline, which is why we’re seeing shares sell so quickly, within days.”
A tale of two sales
The Pacaso selling experience consists of two components: the selldown, where a whole home owner sells a portion of their ownership, and resale, where a Pacaso owner sells an individual share(s) after a period of ownership. The selldown, in many ways, resembles a traditional home sale, as the owner has multiple options available to them. When it comes to resale, however, fewer people have experience with a share-based transaction, and potential buyers and sellers might wonder if shares will sell easily or gain value over time.
While the selling phases differ, the marketplace of buyers is the same, and Jay and Michael were in a unique position to see that play out. Although the couple had intended to hold on to their second home, they eventually decided to move on for personal reasons. They approached the Pacaso team once again, this time to discuss reselling their three ownership shares. Even at a different time of year, when seasonal dynamics might dampen sales, their shares sold just as quickly — and for a 15% premium — demonstrating that Pacaso shares reap the benefits of rising home values and the demand generated by a hot market, just like a traditional home sale.
For current second home owners like Jay and Michael, Pacaso offers the best of both worlds. They have the option to keep a portion of their home and enjoy all the benefits that brings — the ability to stay when they want and retain ownership — while no longer bearing the expense of a whole home or the hassle of maintenance.
And for prospective buyers who’ve heard cautionary tales about selling resort timeshares, Jay and Micheal’s experience highlights the difference in owning a Pacaso. Unlike a resort timeshare, each Pacaso is a unique single-family home in a desirable second home market. When it comes time to sell, Pacaso owners can tap into the existing demand — and in Jay and Michael’s case, even earn a premium on their shares.
The speed at which shares have been selling is “proving the market,” said Andreas Madsen.
“These are one-of-a-kind homes with lasting value, and every time we list shares, the demand far exceeds availability.”