Timeshares have long been popular vacation options for travelers seeking the comfort and convenience of a home away from home. However, one noticeable trend in the timeshare market is the availability of resales at significantly lower prices compared to buying directly from developers.
So, why are timeshare resales so cheap? We’ll break down some of the many reasons it pays to shop on the secondary market and how a resale can help you plan more affordable vacations year after year:
One of the most influential reasons that timeshare resales are cheaper than a timeshare purchased through a resort developer is that there are no hidden fees or commissions that are tacked on to the sale of a vacation ownership.
When you buy a timeshare through the developer, you pay for more than just the ownership. The properties put a lot of time, resources, and most importantly, money, into their marketing and sales departments in order to sell their timeshares. Items like marketing materials, property tours, subsidized or complimentary vacations, presentations, and other free gifts are wrapped into the final sale price, driving up the cost for the buyer.
With timeshare resales, those hidden fees are no longer a concern. On platforms like SellMyTimeshareNow.com, interested buyers are in direct communication with the current timeshare owner where they can discuss a sales price both parties are comfortable with and complete the transaction without any additional costs associated with the developer.
Because timeshare developers need to recuperate the money they spent on advertising and marketing, it can be nearly impossible to negotiate down the price of a timeshare unit into a price range that works for your financial needs. However, it is typically much easier to negotiate on the secondary market.
As previously mentioned, timeshare resale websites like SMTN allow interested buyers to interact directly with the current timeshare owner, which opens up the option to negotiate the price of purchase.
Oftentimes, timeshare owners are looking for a way out of their ownership, whether it be for financial reasons, lack of use, a general change in vacation needs, and more. When you’re dealing with a motivated seller, you might find you have the upper hand to reach a lower purchase price than if you were to buy through the developer.
In most cases, timeshares do not usually appreciate in value like traditional real estate will. This is especially true for timeshares purchased through the developer because of those hidden fees and commissions we mentioned previously, which are steep costs that don’t add any true value to your ownership.
There are exceptions to this rule with extremely popular timeshare brands and resort locations, but those are few and far between. Timeshares should be viewed as an investment in time and travel, not a financial investment where you’ll later see a return.
Timeshare resales are strategically priced (typically) to reflect this depreciation, which means you are getting a true value for the ownership.
In order to deter timeshare buyers from purchasing timeshares on the secondary market, many brands have implemented resale restrictions that can limit some ownership uses, like internal exchange opportunities. These restrictions can be reflected in the pricing of the unit on the secondary market.
Fortunately, there are some great ways to work around these restrictions that the brands don’t want you to consider, like external exchange companies. Companies like RCI and Interval International are some of the largest external timeshare exchange networks in the world and have affiliations with some of the most notable timeshare brands. For a small annual fee, any timeshare owner (including resale owners) can purchase a membership, deposit their vacation ownership, and exchange for any comparable vacation in their database.
It’s important to weigh the pros and cons of each brand’s resale restrictions before purchasing. Some find the cost difference is worth the restrictions, and others don’t. It’s all personal preference.
Gone are the days when the only way we’re able to obtain information about timeshare ownership and the brands is directly through the developer’s perfectly curated brochures. With the internet today, we have access to endless information about these brands and resorts, including firsthand experiences from current owners, what they paid for their ownerships, how they have been able to use their ownerships, and more.
The internet has also allowed people to utilize websites like SellMyTimeshareNow.com with vast databases where they can search timeshare resales by brand, unit size, location, and more. Here, you can see live prices of your preferred resorts, see live offer feeds, and so much more. Knowledge is power and with that, you can make an extremely informed decision on whether you’d prefer to buy affordable timeshares on the secondary market or buy directly from the developer.