Buying Half A Second Home
There are three scenarios where you can become a co-owner in a second home that qualifies for the Savvilla program:
Scenario 1: The present owner is selling a 50% interest in their second home under a Savvilla operating agreement. You will become 50/50 co-owners as Tenants In Common with the present owner.
Scenario 2: The present owner of a home in a desirable holiday destination is selling 100% of their ownership interest in the home and the listing agent has authorized Savvilla to advertise the home to second home buyers who may be interested in a 50/50 TIC ownership format under the Savvilla program. You will become 50/50 co-owners as Tenants In Common with another new owner identified and pre-vetted by Savvilla.
Scenario 3: You have found a home in a desirable holiday destination and are committed to taking a 50% TIC interest in the home if Savvilla can pair you with a buyer willing to take the other 50% interest on the same terms. In this scenario, Savvilla also works with the seller’s agent to secure their authorization advertise the home in 50/50 TIC ownership format. You will become 50/50 co-owners Tenants In Common with another new owner identified and pre-vetted by Savvilla.
Scenarios 1 & 2
You Are Interested In Purchasing A Home Already Listed On Our Website
Contact Us
You may have discovered the second home of your dreams through your agent, through word of mouth, or on MLS. You may have been pleasantly surprised by the price for a 50% interest, but you probably have lots of questions too. Please contact us. Keep in mind TIC second home ownership is best-suited for all-cash buyers. If TIC financing is a consideration, you will need to be paired with another buyer who desires financing on identical lending terms. Please contact us if you would like to be matched with another buyer in the same area who is considering homes in the same budget range.
Let’s Connect (Zoom/Facetime)
We’ll arrange an informal video chat to step you through how Savvilla can enable you to acquire this second home by combining your purchasing power with another pre-vetted buyer who has similar motivations and financial means. We’ll cover every aspect of Savvilla’s professionally managed offering, and answer any questions you may have. If it feels like a mutual fit, we’ll get next steps underway in your acquisition of the home as a 50/50 co-owner.
Engagement
You will receive an engagement letter from Savvilla that outlines each party’s roles and responsibilities and formalizes your working relationship with us. Once you’ve provided your electronic signature and a refundable 50% deposit*, the Savvilla team will get right to work finding a well-suited co-purchaser to pair with you on the transaction. Or if you’re the second buyer to commit to this second home, go directly to Step 4. If you don’t already have an agent at this point, Savvilla will refer you to an experienced agent in your area who specializes in TIC real estate transactions. If you have a preferred agent, the Savvilla team will be available to assist with TIC expertise, resources and referrals.
Making A Joint Offer (If Applicable)
Writing a joint offer differs slightly from a whole home offer because there are 2 parties making a single offer together (not 2 separate offers for 50% each). Once Savvilla has identified and vetted two compatible buyers, and verified both are committed to acquiring a 50% interest and verified both are in an immediate position to make an all-cash offer for 50%, Savvilla will generate an Operating Agreement for the home that includes a home-specific Operating Budget and home-specific amounts for the Contingency Reserve Fund, the Default Reserve Fund, and any upfront costs to bring the home into service (ex. furniture and decor, kitchenware, owner storage lockers, etc.). Next, Savvilla will introduce the agents for each buyer. The parties will choose a lead agent who will write a single offer on behalf of both parties. In such cases, the agents usually agree to split the buyer's agent commission 50/50. If one of the parties’ agents is experienced in TIC transactions, it is recommended that agent be designated as the lead agent on the transaction. Savvilla will provide the parties’ agents with best practice examples of TIC-specific clauses they may wish to consider including in the offer (designed to protect your interests). To ensure the transaction will be compatible with the Savvilla-managed offering, some of these clauses may be required. Perhaps most importantly, subject removal on a joint offer for a TIC transaction should never occur until both parties have transferred full payment for their share and closing costs to the escrow agent. This prevents a scenario where one party could be put at financial risk of losing a deposit because the other party did not make their final payment.
*Once you remove subjects on the purchase of the home, your initial deposit with Savvilla becomes non-refundable.
Offer & Acceptance | Payment & Closing
The offer and acceptance process works just like a whole home transaction. Once the buyers have an accepted offer, they will need to place their respective funds with the escrow agent in accordance with the terms of the accepted offer. At closing, the title will be transferred to the new owners as 50/50 tenants in common.
Co-Ownership Configuration
Depending on where your new second home is located, title transfer can take anywhere from 2 weeks to 2+ months. Once the new co-owners have possession of the home, the property/rental manager will inventory the contents of the home (kitchenware, linens, furniture, mattresses, etc.) and coordinate the purchase or replacement of anything required to bring the home to the standard outlined in your operating agreement. They will also coordinate any necessary repairs/maintenance, mattress/furniture replacements, etc. Lastly, the home will undergo a deep cleaning before being put into service.
Scenario 3
You Found A Home And Need Us To Find A 50% Co-Owner
Contact Us
You have found second home of your dreams and you want to own half of it with the features and benefits of the Savvilla program. If it’s your dream second home, it’s probably someone else’s too. You need to move quickly. Savvilla is standing by with a proprietary system to find you a co-purchaser fast. We also have a database of active buyers already looking for the same thing as you. We’re in the business of vetting and matching qualified buyers and we’d love to step you through just how easy it is to put our team to work for you starting today. Please contact us. Keep in mind TIC second home ownership is best-suited for all-cash buyers. If TIC financing is a consideration, you will need to be paired with another buyer who desires financing on identical lending terms. Please contact us if you would like to be matched with another buying in the same area who is considering homes in the same budget range.
Let’s Connect (Zoom/Facetime)
We’ll arrange an informal video chat to step you through how Savvilla can enable you acquire this second home by combining your purchasing power with another pre-vetted buyer who has similar motivations and financial means. We’ll cover every aspect of Savvilla’s professionally managed offering, and answer any questions you may have. If it feels like a mutual fit, we’ll set our process in motion for you to acquire the home as a 50/50 co-owner.
Engagement
Your engagement letter from Savvilla will outline each party’s roles and responsibilities and formalize your working relationship with us. Once you’ve provided your electronic signature and a refundable 50% deposit*, the Savvilla team will get right to work finding a well-suited buyer to pair with you on the transaction. If you don’t already have an agent at this point, Savvilla will refer you to an experienced agent in your area who specializes in TIC real estate transactions. If you have a preferred agent, the Savvilla team will be available to assist with TIC expertise, resources and referrals.
Making A Joint Offer
Writing a joint offer differs slightly from a whole home offer because there are 2 parties making a single offer together (not 2 separate offers for 50% each). Once Savvilla has identified and pre-vetting two compatible buyers, and verified both are committed to acquiring a 50% interest and verified both are in an immediate position to make an all-cash offer for 50%, Savvilla will generate an Operating Agreement for the home that includes a home-specific Operating Budget and home-specific amounts for the Contingency Reserve Fund, the Default Reserve Fund, and any upfront costs to bring the home into service (ex. furniture and decor, kitchenware, owner storage lockers, etc.). Next, Savvilla will introduce the agents for each buyer. The parties will choose a lead agent who will write a single offer on behalf of both parties. In such cases, the agents usually agree to split the buyers agent commission 50/50. If one of the parties’ agents is experienced in TIC transactions, it is recommended that agent be the lead on the transaction. Savvilla will provide the parties’ agents with best practice examples of TIC-specific clauses they may wish to consider including in the offer (designed to protect your interests). To ensure the transaction will be compatible with the Savvilla-managed offering, some of these clauses may be required. Perhaps most importantly, subject removal on a joint offer for a TIC transaction should never occur until both parties have transferred full payment for their share and closing costs to the escrow agent. This prevents a scenario where one party could be put at financial risk of losing a deposit because the other party did not make their final payment.
*Once you remove subjects on the purchase of the home, your initial deposit with Savvilla becomes non-refundable.
Offer & Acceptance | Payment & Closing
The offer and acceptance process works just like a whole home transaction. Once the buyers have an accepted offer, they will need to place their respective funds with the escrow agent in accordance with the terms of the accepted offer. At closing, the title will be transferred to the new owners as 50/50 tenants in common.
Co-Ownership Configuration
Depending on where your new second home is located, title transfer can take anywhere from 2 weeks to 2+ months. Once the new co-owners have possession of the home, the property/rental manager will inventory the contents of the home (kitchenware, linens, furniture, mattresses, etc.) and coordinate the purchase or replacement of anything required to bring the home to the standard outlined in your operating agreement. They will also coordinate any necessary repairs/maintenance, mattress/furniture replacements, etc. Lastly, the home will undergo a deep cleaning before being put into service.