By creating a new, modern pathway to buying and owning a second home, Pacaso is helping buyers achieve livable luxury with less cost and hassle. And as with anything new, your clients will have questions, including,
“Is Pacaso like a timeshare?”
The short answer: No, Pacaso is anything but. As Pacaso co-founder and CEO Austin Allison said,
“Pacaso’s limited company co-ownership model is a proven, low-risk approach that is fundamentally different from a timeshare in big ways.”
If your clients have questions about limited company co-ownership, share these five important ways Pacaso differs from a timeshare. These can help you turn your clients’ objections into transactions.
1. True home ownership vs. “right to use” timeshares
The most basic difference between a Pacaso and a timeshare is that Pacaso is true ownership of a single property. With timeshares, people purchase only the right to use a hotel room or apartment for a set period of time.
Austin’s take: “With Pacaso, you own a property asset. If you buy into a vacation club or a timeshare, all you’re doing is just prepaying for the right to use a particular type of hotel room for a certain period of time in the year. It’s very, very different.”
2. Private residence vs. hotels and resorts
Pacaso homes are private properties in sought-after residential areas, not condos or hotel rooms in a resort. This is a fundamental difference in property type, as well as the experience itself. Pacaso properties are used only by owners and their guests, and are never rented.
Austin’s take: “Pacaso properties are one of a kind because they are residential properties. In contrast, there’s an immense inventory of timeshare units. If you take a hotel that has 300 rooms, and each of those rooms are converted to a timeshare product which is split into 52 weeks and sold, that’s over 15,000 slices of the same unit type being used by as many different people. You can’t rent a Pacaso as a hotel room or a vacation spot — it’s yours to enjoy.”
3. Easy, equitable, flexible scheduling
Pacaso owners enjoy ease, equity and flexibility with our SmartStay system, which lets owners book stays from two days to two years in advance. Owners visit their property multiple times throughout the year. In contrast, timeshares are typically used once each year and have very fixed scheduling.
Austin’s take: “The reality is that people don’t plan every week of their year in advance, which is what timeshares require. Pacaso co-ownership strikes this nice balance of having flexibility while also giving people the certainty to secure dates that are important to them. That’s what Pacaso offers because we know the rigid structure of timeshares and other fractional offerings is not reflective of how people actually live and travel.”
4. Streamlined resale process
Selling a timeshare often comes with many rules and limitations. Plus, identical units can be available at the same time, creating an imbalance between supply and demand. In contrast, each Pacaso is a distinct, unique property with its own character. The transaction is done in partnership with estate agents and uses the standard estate agent sales process.
Austin’s take: “When you decide you want to sell your Pacaso, you pick the price and our system notifies the other co-owners to give them a first look at the share … If they pass on the opportunity, we list it and tap into our partner network. With timeshares, there are fundamental problems — an abundance of supply, the control of the resort developer and assets that are subject to significant markups.”
5. Proven, low-risk structure
Ownership of timeshares can be confusing, bogged down by numerous restrictions. According to a study by the University of Central Florida, 85% of timeshare buyers regret their purchase. By comparison, Pacaso’s limited company co-ownership structure is a trusted and transparent process with a flexible operating framework designed to protect owners. We’ve applied innovative technology to this proven ownership structure to benefit agents, buyers and owners.
Austin’s take: “In second-home markets, it is not uncommon to see 20% of homes owned by a limited company. It’s an ownership structure that has been around for a long, long time. It’s proven and it’s low risk. That’s just not the case with timeshares.”
In summary, Pacaso is not a timeshare. Pacaso is true property ownership of spectacular holiday homes with a small group of co-owners. It’s the modern way to buy and own a second home.