One of the most burning questions our sellers ask is: “Why can’t I sell my timeshare?” Many timeshare properties should sell within a reasonable time, ranging from a few weeks to a few months, but it’s important to understand the basics of the resale market and ensure your timeshare is priced and advertised correctly.
Unfortunately many timeshare owners have expectations that do not match the realities of the resale market. In this article, we discuss how to set realistic expectations to enhance the chance of selling your property.
Reality Check: The Resale Market is Far Lower Than Developer Pricing
First it is important to understand that the resale market values are much lower than the prices paid by the original owner to the developer. In some cases, resale values can be as low as 90% or more of the original price paid to the resort or developer. In other cases an ownership could retain a resale value that is only 10-20% below the original developer price.
What Determines Resale Market Values?
There are many factors that determine the resale value of a timeshare ownership. Core factors include:
- the brand quality of the resort
- location
- unit size
- view
- the season or fixed week
- the amount of annual maintenance fees paid (compared to the rental potential of the ownership)
In addition, other “perks” are important, such as the ability to exchange the ownership within a certain developer network for other resorts, or point allocation values for exchange with RCI and Interval International.
Other factors include the danger or potential of special assessments. Special assessments for renovations and repairs are more likely to occur in areas prone to natural disasters or weather calamities. Beach resorts that sit in the path of hurricanes could be subject to special assessments. Some of the Florida Key West resorts experienced significant damage in recent years due to hurricane activity. Flooding and fire damage has occurred in Hawaii resorts in past years.
Examples of Varying Resale Market Values
Westin Kierland Villas
Take for example the Westin Kierland Villas resort in Scottsdale, AZ. This resort retains 25 to 50% of the resale value during platinum season.
The following factors make this property desirable during platinum winter season: the location and the amenities; platinum season covers spring break; the property when resold stays within the Vistana network and can be exchanged for other high quality Vistana resorts; the maintenance fee annual assessment is affordable; and the location of the resort is not prone to major weather calamities that could result in special assessments.
Also, this property makes a good rental during spring season and can bring a return to the owner of $1,000-$2,000 profit above maintenance fees each year if rented during demanded weeks.
Orlando & Las Vegas
Consider the opposite example of other resorts that that are located in areas with high inventory available, such as Orlando and Las Vegas. In such locations, and during low demand season, many timeshare properties simply have no resale value. This is especially true if maintenance fees are high compared to the rental prices for the market during low season.
How Do I Set a Realistic Price to Sell My Timeshare?
It is important to research the market for your specific property in order to understand the proper resale value and set a realistic price. Research includes and requires understanding the location, season, unit size, usage rights, maintenance fees and assessments, exchange value, and rental potential of the ownership. Our team of licensed brokers can help you set a realistic price based on these factors and on market conditions.
What Happens If My Timeshare Has No Resale Value?
If our licensed brokers advise you that the property does not carry resale value, a few options are still available.
Resort Deed Back
In some situations, resorts may actually accept a deed back from the owners. A resort may or may not charge a transfer fee or processing fee for the transfer.
Offering Buyer Incentives
It is not uncommon for owners of properties with no resale value to offer incentives for a buyer to facilitate a transfer transaction. Such incentives may include paying closing and transfer fees, and offering free prepaid usage for the following use year to the prospective buyer. In some cases sellers may include accrued points from past years such as banked RCI points in a sale to incentivize the buyer.
Avoiding Scams
This is where unfortunately the resale market is saturated with companies that try to take advantage of owners whose property does not carry resale value. These companies will promise to sell the ownership for an unrealistic price and charge owners some form of upfront fee for the listing.
It is important to protect yourself by avoiding paying such upfront fees, and by using a reputable, third party closing and escrow company for the handling of your transaction.
To successfully sell a timeshare, owners need to understand the specifics of how their property is valued on the resale market. Armed with this information, they can set a realistic price and attract potential buyers. Are you ready for a realistic assessment of your timeshare property? If so, feel free to contact us for free advice from one of our licensed brokers!
Why Choose Premier Timeshare Resale?
Free Listings
We cover all marketing costs upfront and only receive a sales commission if and when the transaction is complete.
No Need To Negotiate
We will negotiate, on your behalf, for the highest price and best terms possible.
No 2024 Dues To Pay
Our buyers will cover the 2024 maintenance fees if they have usage of the 2024 week(s) / points.
Premier Timeshare Resale has over 20 years of marketing and sales experience! Our Licensed Real Estate Brokers are here to help you sell and we will ensure that the listing price of your ownership is the best the resale market has to offer.
Premier Timeshare Resale has a broad base of buyers and expertise with many vacation property brands, such as Marriott, Vistana, Westin, Hyatt, Hilton, Breckenridge Grand Vacations, Disney and many others.
