Market Sharing: A Q&A with Montana’s Cathy Gorman, Élan Residence Specialist

For our second ”Market Sharing” Q&A series, we invited Cathy Gorman, 20-year real estate veteran and Élan Residence Specialist in Big Sky, Montana, to share her thoughts on the local luxury housing market and what makes The Big EZ Lodge such a standout vacation property in The Élan Collection.

What makes Big Sky such a unique vacation destination in your mind?

The Big Sky area stands out as Montana’s finest recreational area. The fact that this corner of Montana is extremely beautiful, with vast wilderness areas and a sparse human population makes it very special. The Big Sky area offers the “Biggest Skiing in America” at Moonlight Basin Ranch and Big Sky Resort, without the crowds typically found at other ski r

esorts. In addition, the area has two private resorts, The Yellowstone Club and The Club at Spanish Peaks. Other outdoor activities include fly fishing in one of three blue ribbon trout fisheries, whitewater rafting, Nordic skiing, snowmobiling, hiking, camping, mountain biking, horseback riding, climbing, hunting, golf and tennis. Wildlife abounds as big game mammals migrate in and out of Yellowstone National Park, just 12 miles south of Big Sky.

Can you tell us a little about The Big EZ Lodge? Why is it a trophy property in your opinion?

The Big EZ property sits on 60 acres in saddle facing East and South with sweeping views of the Gallatin Range and the Spanish Peaks. The Big EZ Lodge was designed by Montana’s premier architect and built from log and stone by two true craftsmen. The fact that no expense was spared in any aspect of the property is evident from the moment you drive through the gate to the moment you step inside the lodge. The property is truly ideal for use as a corporate retreat or as a family compound.

Why are you optimistic about selling fractional shares at The Big EZ Lodge?

It is true that second homeowners rarely spend more than a month each year enjoying their investment. In this economy, the concept of shared ownership will be attractive because it means shared financial responsibility as well. To only have to pay for the time you spend at your vacation home is very attractive.

Where do you think potential owner-members at The Big EZ Lodge will come from?

Geographically, I think they will come from the West Coast, the South—particularly Florida, Georgia and Texas, as well as New England and Minnesota.

Where do you see the luxury market in Big Sky heading in the next two years?

I think that we will see a slow return of the luxury market of five years ago. I believe that the high-end buyers will come back to the Big Sky area because it is such special place. Instead of investors, we will see buyers who come for the love of the area and the quality of life that is unique to Big Sky.

Why Buy a PRC: An Elan Q&A With Stan Tonkin

The mainstream media is finally catching on to the fractional real estate industry’s renaissance this year. Inman News, Smart Money, and MSN recently ran articles on the subject, yet misconceptions still remain about the advantages of shared ownership. We asked Stan Tonkin, Vice President of International Marketing and Sales for The Élan Collection, to clarify a few points. Here is a snapshot of our interview with him:

The Élan Report: What are the benefits of joining a private residence club like The Élan Collection?

Stan Tonkin: Private residence clubs, or PRCs, are a loosely configured co-op of fractional owned properties. Many PRCs offer trade use rights and other benefits, but differ widely in type of ownership, ownership costs, and periods of use. Research shows that typical owners of vacation residences only use their properties four to five weeks out of the year on average. Keeping that statistic in mind, a PRC owner-member can experience the same realistic use of a vacation residence at a fraction of the price.

ER: How do PRCs differ from timeshares and destination clubs?

ST: Private residence clubs are often confused with timeshares and destination club membership, where an owner-member typically buys a non-equity membership with a company that provides access and use to a wide range of vacation properties. In general, a private residence club provides its owner-members with actual ownership rights in a specific property—not a company. This owner-member status offers reciprocal use rights in either other properties owned by the PRC or through share agreements with other similar properties. By definition, The Élan Collection is a PRC that offers shared-interest ownership in an exclusive collection of luxury vacation residences. However, affiliation with The Élan Collection offers its owner-members amenities managed by Élan and the reciprocal use of spectacular properties within The Élan Collection worldwide, through our exchange network.

ER: Ok, bottom line: what’s the number one reason why people buy into a PRC?

Actual ownership of the shared interest in a property, as well as the fact it is sellable or transferable are key advantages. Sharing the cost of operating a property is also beneficial, notwithstanding the benefits of real estate ownership.

Future Élan Vacation Destinations

TEASER ALERT! For many affluent travelers, it’s not a question of how they’ll purchase their next vacation home, but a question of where. The Élan Collection answers the latter question by feverishly adding the most luxurious vacation residences to its growing portfolio of properties. Here’s a sneak peek at the property locations you can expect from The Élan Collection in the coming weeks and months:

Westhampton Beach, Long Island, New York

Montecito, California

Sedona, Arizona

San Francisco, California

Manhattan, New York

Tuscany, Italy

Aspen, Colorado

Hawaii

Los Cabos, Mexico

Which destination are you most excited about? Is there another vacation haute spot you'd like to see on this list? Please share it with us (we're listening)!

The Elan Collection Adds The Big EZ Lodge in Big Sky, Montana

Question: what could you possibly do with 60 acres overlooking Montana's awe-inspiring Gallatin Mountain Range or a sprawling 19,500-square-foot luxury mountain hideaway? An even better question: what could you not do?

The Elan Collection's newest property at The Big EZ Lodge in Big Sky, Montana quite literally expands the notion of luxury vacationing in the West. Whether future Elan owner-members envision using it as a corporate retreat center for team building, the location for their next family reunion, or the site of their daughter's wedding, The Big EZ Lodge makes it all possible with 13 bedroom suites and 15 bathrooms, as well as a great room in the main lodge, elegant western furnishings, a game room wit

h a billiards table, exercise room, wrap-around decks, caretaker's quarters, a large garage and a western-style barn. The award-winning lodge also features two stocked trout ponds, an 18-hole championship putting course, a grotto-style hot tub, wine cellar, fire pit, Bocce ball and croquet courts, as well as numerous hiking trails.

The stunning property is located just minutes from Big Sky Ski Resort in Montana, and about 30 miles from Yellowstone National Park.

MarketWatch: Sales of Vacation Homes Rose Last Year

APRIL 6, 2010 UPDATE: Compare these MarketWatch numbers to the numbers from the 2010 The Shared Ownership Resort Real Estate Industry report by Ragatz Associates released last week, and it's interesting to note that the sales volume for the fractional ownership industry was still an impressive $860 million in 2009. In general, experts in the resort real estate industry believe that shared ownership resort real estate will rebound more rapidly and strongly than whole ownership as the economy recovers.

According to MarketWatch today, sales of vacation homes rose 7.9 percent in 2009. It was the first uptick in sales in the vacation home sector since 2006, reported the National Association of Realtors' Lawrence Yun, chief economist for NAR, in a news release:

"The typical vacation-home buyer is making a lifestyle choice, with nine out of 10 saying they intend to use the property for vacations or as a family retreat," said Yun.

These numbers underscore The Élan Collection mantra: buyers who are in the market for a vacation home value their experience and their time just as much as their money. Fortunately for them, The Élan Collection is not only committed to creating memorable vacations, but also redefining the luxury vacation home ownership experience by bringing the benefits of shared interest home ownership to the exclusive world of private residence clubs.

Are you encouraged by the 2009 sales numbers from NAR? Why or why not?