Timeshare Resale Versus Retail: Learning About The Secondary Market

Navigating the world of timeshares can be daunting. There are numerous brand names and options on the table, and jargon can often be confusing.  To start navigating this complex decision, a prospective buyer needs to first decide between a timeshare resale versus buying directly from a timeshare developer.

In order to help buyers with this decision, we provide a comprehensive comparison of these alternatives. We will explore what it means to buy a timeshare on the secondary market versus directly from a resort or developer.  This information is meant to help buyers make an informed decision that best suits their vacation needs and financial circumstances.  This guide will provide valuable insights into the ins and outs of timeshare resale and retail for both seasoned timeshare owners and newbies.

Understanding Timeshares

Before we discuss the difference between timeshare resale and retail, we need to define the concept of “timeshare”. A timeshare is a form of vacation ownership where you purchase the right to use a specific resort or network of resorts for a certain period each year.

There are a few different types of usage rights that are offered in the world of vacation ownership. Most fit into one of three categories: fixed weeks, floating weeks, and points-based ownerships. If you’d like to compare and contrast the different types of ownerships to see which is right for you, you can read our article here: Choosing Your Ideal Timeshare: Fixed Week, Floating Week, or Points Options.

Traditionally, timeshares are sold by developers or resorts. Many timeshares grant owners a lifetime of ownership, as well as the right to transfer their property. Therefore, they can also be bought and sold on the secondary market. This brings us to our main discussion: timeshare resale versus retail.

Retail Timeshares: Buying Directly from Developers

Purchasing a timeshare directly from a developer is the most common approach for many people.  This path might seem straightforward, but it is important to note that developers often embed their marketing costs into the price of the timeshare. This includes expenses for advertising, seminars, demonstrations, and other promotional efforts. As a result, a timeshare bought from a developer tends to come with a hefty price tag.

Timeshare Resale: A Cost-Effective Alternative

Timeshare resale refers to the process of buying a timeshare on the secondary market from an existing  owner. The timeshare resale market is a vibrant and diverse marketplace where owners can sell their timeshares to interested buyers.  Is it no secret that timeshare resales are most often deeply discounted in price from the original price paid to the developer by the original owner/buyer.

Making the Right Choice: Resale or Retail?

While developers often offer perks and incentives like points for other services or amenities, buyers need to consider whether these extras outweigh the potential savings of a resale purchase. Some of these perks might be transferrable from one owner to the next, but this isn’t always the case.

In conclusion, whether you choose to buy a timeshare resale or retail, the most important thing is to make an informed decision. Understand the pros and cons of each option and consider your vacation preferences and budget before making a choice.

As always, feel free to fill out a contact form for a free consultation with one of our licensed Real Estate agents. Our team of timeshare experts are happy to answer any remaining questions regarding timeshare resale or the process of transferring a timeshare on the resale market.