Why Summer is an Optimal Time to Sell a Timeshare Property

More Buyer Demand Due to Peak Season Vacation Times

Summer is the peak travel season for many families. Schools end anywhere in late May/June and can start as late as September. This makes June through August highly desirable peak seasons when travelers visit timeshare resorts.

During these summer vacation months, many travelers attend timeshare presentations and turn to the secondary resale market for an affordable property purchase option. This makes summer an ideal time to list the property for sale, as there will be increased interest and an influx of buyers.

Once school starts in the fall, families find themselves quite busy with new schedules and children’s activities. The school start is quickly followed by major upcoming holidays such as Thanksgiving or New Year’s. The timeshare industry tends to be very slow during these months, with fewer buyers in the market to purchase an ownership.

Less Supply Than Year-End, When Maintenance Fee Bills Arrive

Most timeshare developers build maintenance fee assessments at the end of the year. Bills arrive between September and December and are often due in January. For this reason, many owners who do not actively use their property decide to list it for sale to avoid the maintenance fee dues for the next use year. This, however, results in an oversupply on the market and lower pricing.

Therefore, it is better to list a property for sale earlier in the year before maintenance fees are due. Listing the property for sale in the summer often ensures that a transfer can occur to a buyer before the following maintenance fee is billed.

Ideal Timing to Secure a Desirable Booking for the Buyer

Sellers can expect to receive a higher sale price when they have secured a desirable booking for the buyer for the following use year. Listing a property for sale in the summer or slightly earlier than summer gives the owner sufficient time to secure a desirable reservation for the buyer. Most resorts allow owners to secure reservations a year in advance. For beach resorts, which are desirable during summer months, this means that the owner can secure a summer week for the following year at the time of listing the property for sale. For ski resorts, where peak season is between January and March, sellers also have sufficient time to secure a desirable reservation for the buyer.

Buyers often purchase a property if they can work with the owner to secure their preferred week for the following year. Listing the property for sale in advance ensures sufficient time to negotiate a desirable reservation for the following year for the potential buyer.

Other Essential Factors to Consider

There are, of course, many other market forces that impact demand, supply, and the pricing of timeshare properties on the resale market. Many of these market forces are independent of the time of the year.

Macroeconomic Conditions

For example, economic conditions can severely affect the resale market, whereby during times of economic downturn, there is increased supply and reduced pricing. Local developments such as natural disasters can also reduce resale values – temporarily or permanently – for properties in that area. An example is the recent fires that occurred on the island of Maui, Hawaii, in 2023. Travel demand for Maui has been reduced by approximately 40% following the fires, and the resale value of timeshare properties on the island has decreased.

Right of First Refusal

In addition, developers themselves can affect resale values when they are actively exercising the right of first refusal. During such times, pricing can increase due to reduced supply and minimum pricing set by the developer when they buy back properties on the resale market.