What to Expect When Buying Timeshare on the Resale Market
June 19th 2024 Posted by: SellMyTimeshareNow SMTN Category: For Buyers

Buying a Timeshare Resale: What You Need to Know

Buying a timeshare resale is an easier and more affordable way to enjoy all that vacation ownership has to offer. You can shop comfortably from your own home, browse a wide selection of properties, and enjoy thousands of dollars in savings.

There are other aspects to be aware of before shopping the timeshare resale market. Here are some details on what to expect that will help you make a smart and informed decision when purchasing a timeshare by owner.

Right of First Refusal (ROFR)

Many timeshare resorts have a Right of First Refusal clause in their contracts. This means that before you finalize the sale of a timeshare resale, the resort has the option to buy back the timeshare from the seller at the agreed-upon price. If they exercise this right, they typically match the buyer’s offer, effectively preventing the sale to the prospective buyer.

Knowing this, it may be worth it to have a second timeshare resale in mind in case the resort exercises its right to buy back the property. Being aware of this concept will allow you to manage your expectations when buying a timeshare on the resale market. Working with an experienced timeshare resale company can also help provide guidance on finding the right price point to offer to help avoid the resort exercising their right of first refusal.

Resale Restrictions

When you buy a timeshare through a developer, certain perks sometimes come with the ownership. With the significant savings you enjoy when buying a timeshare resale, there may be resale restrictions in place from certain brands. Some resort developers limit resale buyers’ access to certain benefits, most commonly with internal exchange, but keep in mind that resale restrictions vary greatly by brand and even resort.

If you find yourself interested in a timeshare brand with internal exchange restrictions for resale buyers, there is a simple solution. Most major timeshare brands and resorts are affiliated with external exchange companies like Resort Condominiums International (RCI) and Interval International (II) which offer a portfolio of thousands of top-rated resort properties located all over the world. For a small annual fee, you can join one of these external exchange networks and utilize their extensive exchange services. This gives you thousands of additional travel opportunities and you can still enjoy the savings available on the resale market.

It’s crucial for prospective buyers to review the resale agreement and any restrictions that may come along with it. As resale restrictions vary greatly by ownership, it’s always best to work with a timeshare resale specialist so you can ensure you know exactly what you’re getting with your purchase.

Deeded Versus RTU Contracts

Timeshares are typically sold as deeded properties, meaning you own a fraction of time at the resort through a deed. Deeded timeshares you own for life and you can rent the property out, sell it, or pass it down to your heirs.

Other timeshares are sold with Right To Use (RTU) contracts. With an RTU timeshare, buyers purchase the right to use the property for a set number of years or weeks/nights. Some RTU contracts are in perpetuity or have a certain end date, but they will limit the number of weeks or nights on the contract. You’ll typically find RTU timeshares in locations where deeded vacation ownership is not allowed, but some resorts just prefer to sell RTU contracts. These contracts allow the resort developer to maintain the deeded ownership of the actual property, but they can be more flexible for those using them. For example, you don’t have to adhere to an annual or biennial usage schedule. You can vacation multiple times in one year and then not visit the property for a few years.

When buying a timeshare resale with an RTU contract, it’s important to understand the terms of the contract as well as how many years are left for you to use it. RTU timeshares still allow owners to rent, transfer, or sell their ownerships during the lease period.

Maintenance Fees

Buying a timeshare resale will save you thousands of dollars on the initial purchase, however, it is important to remember that you are still responsible for maintenance fees. These fees cover the costs of property renovations, repairs, general upkeep, utilities, and amenities. It’s important to factor these additional fees into your ownership budget and also understand that they may fluctuate over time.

Due Diligence

Be sure you have all the timeshare resale information you need before making a purchase. This includes researching the resort and its amenities, reviewing the resale agreement and any associated documents, and consulting timeshare resale specialists regarding the full terms and conditions of your purchase.

Shop Our Timeshare Resale Market

Buying a timeshare resale can be a wonderful way to experience a lifetime of affordable vacation experiences, but it is also something that shouldn’t be bought on a whim. Do your own research, consult with experts, and consider all of your options. Visit our website for more information on how to buy a timeshare and browse our extensive inventory of timeshares for sale by owner to see what exceptional timeshare resale properties are available right now for thousands below retail.

Get industry news, updates, and more!
Connect With Us
Follow Us:

Blog Poll

What is your primary motivation for selling your timeshare?

View Results

Loading ... Loading ...