What Timeshare Buyers Want to Know

Experienced timeshare owners and consumers who have done their research understand that the resale market has the best deals available compared to buying a timeshare at the resorts. That’s not speculation – it’s fact. 

Timeshare buyers who come to the secondary market know that the prices are significantly discounted in most instances. Not because there is anything wrong with the product, but primarily because of the way it has been initially sold through the resorts. 

Think of this in terms of a car purchase. New cars are marked up on the lot to cover sales and marketing costs and commissions, which is why they lose value the minute they are driven off the lot. It is the same with timeshares. 

Why Are Prices So Discounted? 

Timeshares sold through the resorts are marked up between 50-60 percent to cover the costs of bringing buyers onto the resort grounds, touring them and selling the timeshare. It covers all those free dinners, shows and discounted weekends they give away to get you to experience the resort. 

Remove those marketing costs and you’ll get a better idea of what the value is for the timeshare. 

Yes, there will always be the timeshare equivalent of a ’79 Ford Pinto up for sale on the resale market. And yes, some sellers will continue to put their timeshares on the market for $1. In fact, I just took a look on Cars.com and found a 2015 Ford F-250 truck with 169,000 miles on it for sale in Florida for $1. It doesn’t discredit the used truck market. 

Most buyers looking to the resale market already know there are deals available on amazing timeshares in terrific locations. Otherwise, they wouldn’t be here looking for information. 

Because we speak to so many of them on a daily basis, we understand what timeshare buyers want to know because they ask us directly. So, we wanted to provide the top questions and answer them in case it helps you when searching for a timeshare. 

Information For Timeshare Buyers 

How Does the Transfer Process Work? 

This is handled by a third-party closing company recommended either by us or the resort/management company. 

When the contract is agreed to by the seller and buyer, the agreement is sent to the closing company, which contacts all parties involved. The resort is notified and participates in the approval of the sale. Upon approval, the resort notifies the closing company, which proceeds with the transfer, recording of documentation and notification to all parties. The resort adjusts its records to document the transfer and the transfer is completed. 

How Much is the Deposit?

It depends on the sale price. The deposit can be as much as 15 percent of the sale price, but the minimum deposit is $500 for a buyer to hold the deal. 

How are Funds Held/Transferred?

An escrow account is established and the funds are held in the account. A deposit is paid by the buyer, and during the closing process the closing company contacts the buyer to send the balance of the money owed. Once the deal is closed, the money is sent by the closing company to the seller, similar to a home purchase. 

How Do I Know You Are Legit?

We are a licensed real estate company and, because we are headquartered in Florida, we operate under some of the strongest state regulations in the country. Our licensing details are available through the Florida Department of Business and Professional Regulation for anyone to check out. 

Also – we are a Featured Reseller for Wyndham Vacation Ownership and have direct working relationships with all of the major branded timeshare companies. Wyndham is the largest timeshare company in the world, so their decision to work with us speaks volumes about our ability to legitimately operate in the secondary market. 

In addition, we are members of the American Resort Development Association and the National Association of Realtors, with an A+ rating with the BBB. 

Do I Get a Deed?

This depends on the type of timeshare or membership product purchased. In the case of a pure points program such as WorldMark, this is a non-deeded ownership product so there is no deed. For fixed week products, there would be a deed attached to the timeshare because you would technically own a share of the resort. 

Where it can get confusing is with some of the points programs where the points are deeded to a specific resort, such as in the case of Disney Vacation Club. In these instances, points are deeded through a Trust and recorded with the local government entity. Other programs such as Wyndham have a mix of points-based and weeks-based products available on the resale market which can be deeded or non-deeded. 

Because of the technicalities with some of the products, it is best to check with a licensed agent to see whether a product is deeded, if this is important to you. There are advantages and certain disadvantages to deeded products, so an agent can go through this with you. 

Are Prices Negotiable?

Yes, as with just about any type of transaction a price on a timeshare resale can be negotiated. Keep in mind that some timeshare companies have a Right of First Refusal (ROFR) policy, meaning that the timeshare company can step in and buy the timeshare from the seller if they think the sale price is too low. This helps the company maintain a certain price level on the resale market. 

The problem with ROFR is that the buyer can be left out and lose out on the purchase if this happens. That is why it is important to have a licensed agent working on behalf of the buyer, to not only negotiate the best deal but to make sure it is approved so the buyer gets the timeshare they want. 

There are a lot of moving parts when it comes to buying a timeshare. If you have more questions and need to speak with a licensed agent, please call 877-624-6889 or click here to leave us a message.