CHAPTER 2
Building a
Resort and
SecondHome
Business
Slide 2-1
Learning Goals
Essentials of buying, selling, and managing
resort properties and second homes
 How to earn the RSPS
Certification
 Building a Resort and SecondHome Business
 The Recreation and Lifestyle
Market
 Helping Clients and Customers
Make the Right Choices
 Tax Treatment of Vacation and
Second Homes
 The Marketing Mix
 Trends and Issues
 Exam
Slide 2-2
Facets of the Specialty
Property Types
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Single family
Condo
Resort
Ranch
Luxury
Time share, fractional,
destination club
Cabins
Pied a terre
Adult, retirement
Gated community
Buyer Objectives
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Investment
Management
Retirement
Getaway
Family gathering place
Tax strategy
Value appreciation
Diversification
Slide 2-3
Applying Core Skills
How do specialists adapt
core real estate skills to:
 Serve the resort and
second-home market?
 Build their businesses?
 Differentiate?
Slide 2-4
Applying Core
Real Estate Skills
Communications
Presentation Skills
Networking
Financing
Product Knowledge
Regulatory Knowledge
Slide 2-5
Applying Core
Real Estate Skills
Market Knowledge
Customer Service
Fiduciary Duties
Patience
Investment Knowledge
Listening
Slide 2-6
Applying Core
Real Estate Skills
Mind Set
Negotiations
Community Involvement
Tax Issues
Technology Use
?
Marketing
Slide 2-7
E-PRO® Certification
How to Earn:
 Complete 1 day in the classroom PLUS 1 day
online
Certification Benefits:
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e-PRO® professional online referral community
Use of e-PRO® logo and name
Customizable e-PRO® marketing materials
and many more…
Slide 2-8
Make a Game Plan
Description
Competition
Goals
Financial projection
Rationale
Activities
Measurements
 Mission statement
 Core values and
principles
 Value proposition
 Service philosophy
 Business model—
how we get paid
?
Slide 2-9
Identify Your Market Niche
 Shared interests
 Location or property type
 Lifestyles or life stages
 Go where the market
takes you
Slide 2-10
Know Your Product
Use core farming skills
Growth stage—hotter
commodity, quick sales
Too new—harder to sell?
Many similar properties?
 Upgrade and stage well
Page 23
Slide 2-11
Target Market Lawfully
Focus on describing yourself, your services, and
the property, not the buyer
Marketing to those who share an interest is not
inherently discriminatory as long as no one is
?
excluded
Slide 2-12
Do You Know Your Client
Objectives
Lifestyles
Life stages
Preferred property types
What is keeping them from buying?
Slide 2-13
Set Yourself Apart
How productive are you
compared to your
competition?
Who else works your
farm area?
Best distinguishers
 Knowledge
 Experience
 Services
Slide 2-14
Prospecting
 Challenge of absentee
owners and buyers
 Offer a service or
information
 Adapt listing presentation
and buyer counseling for
distance
Slide 2-15
Stay In Touch and Follow Up
Past clients
New leads
(sellers or buyers)
Spheres of influence
Owners and renters in
your farm area or niche
Local business owners
Slide 2-16
Surviving a Down Market
The Bad News
Surviving a down market
starts with the realization
that it will be more difficult
to make money and your
income may be reduced.
The Good News
Your competitors may go away.
Slide 2-17
Planning for a Down Market
Don’t wait for things to get worse to plan
Use scenario planning & rehearsal
Make decisions consistent with your business model
and core values
Plan where to cut expenses
When the scenario happens, you’ll know what to do
Slide 2-18
Step Up Your Marketing
Why?
Two ways to increase income
1. VOLUME
2. CONVERSION RATE
Counter intuitive
Price right and stage well
Reallocate marketing resources—the market
will tell you how
Build name recognition
Slide 2-19
?
Prospecting in a Down Market
FSBOs—even harder to sell
Offer something of value, a solution to a
problem
Buyers and sellers want to know— “What
can you do for me?”
Slide 2-20
Invest in Yourself
Do the things you said you
would do when the market
slowed down
 Sharpen skills
 Learn social media—start a blog
 Community involvement
Be even more disciplined in budgeting your time
Take care of yourself and your family
Hang out with successful people
Slide 2-21
The Luxury Market
Successful business
people expect a very
high degree of
professionalism
 Confidentiality
 Trustworthiness
 Privacy
Page 30
Slide 2-22
?
Part of the Team
“Face” of client may
a team of advisors
 Become the trusted
real estate advisor
 Adjust communication
style and methods
 Prequalify requests
to see the property
Slide 2-23
Showing Properties
Prepare a portfolio on each property
Successful business people are
accustomed to reading business
proposals
Slide 2-24
Young and Rich?
Specific property features
High-speed, broadband
Security
Prestige
Views
Room for kid’s
activities
Recreation
Easy access
Slide 2-25
U.S. Real Estate
Attractive to foreign buyers because
 No restrictions
 Many investment grade properties
 Reliable transactions
 Stable political environment
 Resilient economy
Slide 2-26
International Buyers &
Realtor.com Globalizaton
• If International Buyers are big players
in your market, CIPS designation
courses are designed for you!
• Get started at
www.realtors.org/global/cips
• Realtor.com Globalization
Slide 2-27