FlipKey rates vacation homes as TripAdvisor does hotels - almost

Many vacationers rely on TripAdvisor for reviews of hotels written by authentic travelers just like themselves. Now, as more tourists choose vacation homes as their accommodations rather than hotels, FlipKey, a TripAdvisor-owned service, welcomes the same type of peer reviews of thousands of properties.

"We have over 100,000 authentic guest reviews on our site," a spokesman for FlipKey wrote me in an email, but he added that "coverage can vary quite a bit depending on the area."

What makes TripAdvisor so valuable is, in part, its sheer quantity of hotels and reviews. It has 450,000 hotels from around the world in its listings, according to its press material, with millions upon millions of reviews. (TripAdvisor also lists and ranks restaurants and attractions. It is owned, as is FlipKey, by Expedia.)

FlipKey is not there yet. Many properties listed have just one or two reviews. It will take a while before scores of guests judge and post reviews for a single vacation home or condo. Nevertheless, it's making progress toward a critical mass. Some properties in such locations as Disney World and Gulf Shores, Alabama (where the condo pictured above is) have up to 19, when I checked today.

To make properties trustworthy, FlipKey offers a verification program for professional property managers. To make reviews trustworthy, it only allows verified previous customers to post reviews through an email invitation system. However, owners or managers pay for a property listing itself. Properties in a given area -- Disney World, Lake Tahoe etc.-- are not shown ranked by popularity as hotels are in TripAdvisor. And a huge number of reviews I looked at were super-positive (5 stars.)

Still, feature-rich FlipKey provides details of rooms, baths and amenities in each property plus photos, prices, location, availability It indicates whether homes are managed by the homeowner or by a management company.

Given time, FlipKey could develop into a must-check website for discriminating travelers, just as TripAdvisor is.

Overseas Buyers: Beware Overheated US Markets

Overseas, Mexican and Canadian vacation home investors shopping for bargain houses are not buying in all the so-called "bargain" communities of the US, according to a New York Times article. "Prospective buyers are still wary of America’s volatile economy and concerned that housing prices could continue to decline. The result is that despite their interest to get a great deal, foreigners have been slow to purchase in all but the most recession-proof properties in the most expensive areas, like East Hampton (above left, courtesy EastHamptonhomesearch.com) and Beverly Hills," the Timesquoted "Agents for properties adjacent to America’s most desired beach and ski communities." The article said while Hamptons may be hot, Cape Cod is not. Also cautious: buyers in California and Nevada's Lake Tahoe vacation home enclaves.

Like Pizza, Slice of Vacation Home Better Than None

Once upon a time, even the most mid-level middle-income folks could afford a getaway shack, cottage or cabin on a lake, by the seashore or near the mountains. The place I owned in Snowmass Village in the 1980s cost us only $100,000 for a 2-bedroom condo at one of the nation's great ski resorts. Now, the same kind of money will get you only a few weeks -- a timeshare, or fractional ownership, as the sales crowd likes to call it.

There were 188 "fractional interest" projects in the U.S. in 2005 with $2-billion in sales, a 28 percent jump over 2004, according to NorthCourse.com, a research firm that keeps tabs on the market. A newspaper article recently spotlighted a California family that paid $56,000 for the use of a two-bedroom, furnished home in the Old Greenwood development (photo above) at Truckee, near Lake Tahoe, for at least 21 days a year. With their purchase of a slice of the house comes membership in the Tahoe Mountain Club, which includes access to private restaurants and recreational and spa facilities. And of course owners can take a tax deduction on the mortgage interest.

Another 9-Figure Sale Price

First there was Prince Bandar's house in Aspen for $135-million. Then there was Donald Trump's little getaway in Palm Beach for $125-million. Now comes word of a third unbelievably pricey "vacation" home for sale -- Tommy Hilfiger's "Tranquility" on the Nevada side of Lake Tahoe, on the market for $100-million. A publicist for the broker, Shari Chase of Chase International, says the amenities include a cigar lounge (that's a first for me -- anyone ever hear of a cigar lounge in a private house?) and 210 "secluded" acres. The estate's main residence is 20,000 square feet. Want a peek? Call Shari at 775 588-6130.

Hot Spots Could Be Ripe for a Cooldown

These areas saw some of the biggest gains in vacation home sales between early 2001 and 2005. Now many of these markets are beginning to cool, says Fiserv Lending Solutions.

               Av Gain (2001 - 2005) Gain (2005 - 2006)
Cape May, N.J.                 16%               9%
Cape Cod, Mass.                12%               3%
Florida Keys                   24%               13%
Lake Tahoe, CA                 13%                7%

Is The Party Over?

Be worried. Be very, very worried, if you're a second-home seller. It may be time to declare officially that the bubble has burst. A front-page New York Times article today says: "The once-bustling deal making in a wide variety of popular locations for second homes -- areas like Florida, the Jersey Shore and Lake Tahoe, as well as the high-price playground on the East End of Long Island -- has slowed markedly in recent months. As the overall housing market weakens, the interest in buying vacation homes, from the most modest condominiums on up, appears to be falling faster."