Timeshares For Sale

The average cost of a timeshare is a little less than $23,000 for a week of vacation time according to the American Resort Development Association. Because of the increase of points programs on the market, the industry has redefined their term as a timeshare interval rather than just a timeshare, because an interval can also be a shorter period of time, such as a long weekend, where points can be used to book vacation accommodation.

There is an important distinction to make here between the industry average and the price of a timeshare resale on the secondary market. Timeshare industry averages only account for the higher prices charged at the resorts, often through major hospitality-branded programs, and not discounted prices on the resale market.

Prices charged through the resorts can be marked up as high as 60 percent to cover marketing costs and sales commissions. The resorts use incentive programs to get prospective buyers onto their properties, and sales staff are paid commission on the sale of a timeshare. That adds up to thousands of dollars recouped through the resort sale – and these costs are not included on the resale market because buyers are buying from existing owners.

The good news for buyers looking online is that you know about the resale discounts and deals available or you wouldn’t be reading this information. Timeshares are great vacation options, but everyone thinking about buying a timeshare needs to look online before signing a deal at the resort. It will save you big money in the long run.

A timeshare is an ownership product like many other products, so you can sell a timeshare or give it away like anything else you may own. So, you don’t have to own a timeshare forever, even if your agreement may be in perpetuity, which is without a specified end date for ownership.

Some timeshare agreements, such as Disney timeshares or Mexico right-to-use agreements, have a specific expiration date included in the agreements. However, those dates are often far out into the future to essentially make them irrelevant, and most owners look to transition out of their ownership before they get to those dates. Other programs are offering shorter, limited term agreements as short as three years, but these are more like travel club memberships and not traditional timeshares.

There are resorts that provide advice when their owners, such as long-term owners, look to move on from their timeshare. These owners have paid off their timeshares and are up to date on their maintenance fee payments, so some resorts or branded timeshare companies may be able to provide a way to relinquish ownership back to the resort.

There are so many factors involved that is it difficult to make a blanket statement about the best timeshare to buy. So much of the decision depends on personal preference and brand loyalty, but we can help narrow it down for you.

Some of the choices that a buyer needs to make before looking at timeshare are:

• Size of unit – depending on the needs of your family, do you need a two- or three-bedroom unit or does a studio unit work for you.
• Unit amenities – for instance, do you need a full kitchen, especially if you have special dietary needs, or is it okay to eat out for your meals? Is free Wi-Fi a requirement? What about a balcony, especially if you are in an oceanfront unit?
• Resort location – even for most of the branded points-based programs, you will need to choose a home resort location from which to base your ownership. Where do you most often like to travel on vacation? Is a drive-to destination a priority, or do you like to fly away to a more exotic locale?
• Favorite activities – these tie into the resort location theme. Do you like a beach vacation or would you rather hit the ski slopes? Does a mountain getaway get you going, or would you rather take the kids to theme parks? Narrowing this down will go a long way toward easing your decision.
• Favorite brand – many travelers have a favorite hospitality brand that they frequent, especially if they travel on business. Just about every major hospitality brand, such as Hilton, Marriott and Wyndham, has a timeshare program attached to their operation. These operators often link their rewards programs to timeshare ownership, such as Hilton timeshare owners using points in the Hilton Honors program. If you have a favorite accommodation brand that you use, check for deals under those brands on the timeshare resale market.

It is no secret that the more popular timeshares are with programs affiliated with brands such as Disney Vacation Club, Westin Vacation Club, Marriott Vacation Club, Club Wyndham and others. The flexibility of using timeshare points to vacation at numerous destinations is a big draw, with points providing owners with choices that can answer any of the items mentioned above.

Not at all, but some owners may feel as though a timeshare is a waste of money because of the choices made due to a lack of information.

According to the American Resort Development Association, 87% of timeshare owners are satisfied with their timeshare ownership. That is an amazing statistic, but it still leaves 13% of owners less than satisfied with their product.

Since most owners buy timeshare as a new product directly from the resorts, a certain amount of dissatisfaction could come down to the amount of money first spent on the purchase. Because resort retail prices are as much as 60 percent higher than resale prices, some owners only find out after the fact that they may have paid too much for their timeshare. Therefore, researching online for the best resale deals will go a long way toward reducing buyer remorse.

Use of a timeshare is also important. That may seem like a no-brainer, but many owners just do not use their timeshare for various reasons, such as health or financial reasons. A timeshare is a use product, so they need to be used to gain the full benefit. Annual vacations are important, and the prepaid nature of timeshare ownership makes it easier to decide to book a vacation and get value out of your ownership.

Some owners feel frustrated that they cannot seem to book the accommodation they want, but this can also be a lack of understanding of how to use the product. One of the criticisms of the industry is the lack of communication and explanation of the products by resorts when the timeshare is first purchased. Some of the points programs can be confusing for first-time buyers, so it is important to do everything you can to get all the information you need from your resort in order to use your timeshare. Whether it is early booking windows, travel benefits apart from your accommodation or onsite discounts, find out as much as you can.

Exchange companies can also help in this regard. Timeshare resorts are affiliated with exchange providers such as RCI and Interval International. Owners may think their exchange choices are limited but there are alternative programs such as 7Across that can open up more exchange options with lower fees or no membership fees. Using an exchange service can extend your vacation choices and give you even more benefit from your timeshare.

Because the sales and marketing costs that are loaded onto the timeshare prices at the resorts do not exist on the resale market. This makes timeshare resales relatively cheap by comparison – since those marketing costs can add up to as much as 60% of the overall sale price of a timeshare bought at the resort.

Owners who have bought their timeshare at the resort have already paid those costs, since the timeshare resort had to outlay expenses to get that buyer to the resort in the first place. Those costs are removed with resales since it is up to the brokerage firm or advertising company to bring the resale buyers to the sellers. Similar to the way a car loses value once it is driven off the car lot, timeshares depreciate after the initial purchase.

Keep in mind that timeshares are not like a traditional real estate purchase since they are a use product and not an appreciating asset in the overwhelming majority of cases. It is more like prepaying for your annual vacations – but at today’s prices. This is where timeshare resales are such great bargains since many can be purchased for as little as $5,000 on the resale market. Even including annual maintenance fees, which are paid regardless of whether a timeshare is bought new or as a resale, the average cost is a good deal.

The American Resort Development Association estimates that the average maintenance fee is about $1,000 a year for a week of timeshare. So, if you bought a timeshare resale for $5,000 and prorate the total costs over a 20-year period, you would get a week of vacation accommodation each year for about $1,250, or about $178 a night. This for a multi-room, condo-style accommodation with kitchens, living rooms and separate bedrooms for privacy.

Even compared to most hotel rooms with similar amenities – this is a great deal.