Never heard of timeshare resales? You’re not alone! Surprisingly, timeshare resale is still a relatively novel idea in the timeshare industry. Due to the fact that timeshares were originally designed to be lifelong products that owners could even pass on to their children, the resale market has emerged slowly. Today, however, the timeshare resale market is booming, and it’s no wonder. Timeshare resales are a great way to start living your vacation ownership dreams without breaking the bank.
About the Resale Market
With most products, there’s retail and resale. It’s common for us to buy something one day and absolutely love it. But the next day, it might not fit our lifestyle any longer. When timeshare had its beginnings, owners loved having their annual vacations at the same time and place. It was a great way for the extended family to get together or plan out those quality family vacations.
Timeshares are also known for having annual fees and dues. Although you might have paid for your share up-front, every owner buying a timeshare is required to pay annual timeshare maintenance fees. Or maybe you just don’t use your share anymore, and so you’d sell it to someone else to use. For these reasons and more, the timeshare resale market was born.
Before the American Resort Development Association (ARDA) became the regulating force for the industry, however, there were some bad apples out there. Timeshare sales representatives for smaller resorts would lead buyers to believe that their timeshare was an “investment.” As we know now, that’s not the case.
While owning a timeshare is like owning real estate (yes, you do own a piece of your timeshare), a timeshare does not appreciate in value as real estate properties do. It can drastically go down in value, like a brand-new car, when you drive it off the lot.
Step-by-Step: How to Buy a Timeshare!
A Complete List of Timeshare Resale Scams
Before you decide to buy a timeshare or place one for sale, make sure you’re aware of what’s going on in the timeshare industry. There are some tricksters out there that take advantage of owners every day. Lucky for you, we keep up with the news and timeshare resale scams you should be aware of.
One type of scam that’s especially important to watch out for is timeshare cancellation. Timeshare exit companies who claim they can “cancel” your timeshare are a red flag. In reality, these companies are usually made up of lawyers who will try to find a loophole in your contract. This strategy rarely succeeds. Like most other contracts, you can’t just cancel a timeshare.
Are Timeshare Resales Worth It?
If you’re passionate about vacations but aren’t too sure about vacation ownership, there are ways to test the waters. Before diving in headfirst with purchasing a timeshare straight from Club Wyndham or Marriott Vacation Club, you can rent one first. As a legitimate timeshare resale company accredited with the Better Business Bureau (BBB) and ARDA, we’re your trusted source for timeshares for rent by owner.
You can also save a ton of money by buying a timeshare resale instead of buying directly from the developer. With savings of upwards of thousands of dollars, that alone makes a timeshare purchase on the secondary market worth it. Many of the same benefits transfer to a resale owner, like vacation exchange.
How to Buy Timeshares On the Resale Market
If you’re interested in buying a timeshare resale, make sure you go about it the right way. Using a credible resale company that is an ARDA member and accredited by the BBB will help you avoid any pitfalls. Learning how to buy a timeshare can be easy with the right help.
Using our online resale marketplace, you can filter and find timeshares for sale by brand, unit size, destination, season, and more. When you have an idea of what you’re looking for, it’s as simple as making an offer online. Or, if you prefer, you can call one of our representatives at 1-800-610-2734.
Types of Timeshares for Sale on the Resale Market
There are many types of timeshare contracts and many sub-types of timeshare ownership. Examples of timeshare contracts include deeded, right to use, and leasehold. Sub-types, meanwhile, may fall under fixed-week, floating-week, and points-based ownership models. Here’s a quick rundown:
Timeshare Contracts
Deeded Week – With a deeded week timeshare resale, owners get a deed for a particular week at their timeshare. Timeshare buyers with deeded weeks own their timeshares. Thus, they are free to sell, rent out, or gift their ownership if they want. Deeded week timeshares were the most common type of ownership for a long time. However, most timeshare companies have transitioned away from deeded weeks towards more flexible types of ownership.
Right to Use – A right-to-use timeshare (RTU) does not come with a deed but does come with a contract stating how long the owner has usage rights. Typically, right-to-use leases are over after 30 to 99 years, depending on the original contract. However, it is still possible for owners to sell their ownership on the secondary market.
Leasehold Timeshare – A leasehold timeshare has a specific expiration date and is not owned in perpetuity. In this type of timeshare, the timeshare company “leases” the land from a real estate developer. Thus, all leasehold contracts at a given resort have the same expiration date. However, timeshare buyers who opt into a leasehold timeshare do have the same rights and benefits as other types of timeshare owners. Disney Vacation Club is a great example of a leasehold timeshare.
Timeshare Usage Subtypes
Fixed-Week Timeshares – In this traditional type of timeshare usage, you can use your property during the same week every year. The resort usually gives you usage rights for one week. During the rest of the year, other owners use it. If you plan to travel during a specific week every year, fixed-week timeshare are a great option. Furthermore, this type of ownership allows you to create a yearly vacation tradition, as you have a set week in the same unit year after year.
Floating-Week Timeshares – An owner of a floating week can choose which week they want to stay at a resort within a specified period or season. Usually, if an owner purchases a floating-week timeshare during the summer season, for example, they can visit their unit during any available week in that season. Floating timeshares offer more flexibility than fixed weeks but less than point-based systems.
Points-Based Timeshares – In today’s timeshare market, points-based timeshares are the most popular and the most common. In points-based timeshare transactions, a timeshare buyer will choose a home resort and purchase a timeshare in the form of points. The amount of points you need depends on your home resort, and factors like unit size, season, and length of stay. Using the points, the owner can stay at his or her home resort or exchange them to stay at another resort within the brand’s network. Disney Vacation Club is an example of a points-based timeshare vacation club, and most Wyndham and Marriott timeshares are points-based.
Find All Types of Timeshares on the Resale Market!
As mentioned, most vacation clubs have transitioned to points-based timeshares as their primary offering. However, the secondary market is a great place to find fixed-week and other traditional types of timeshares for sale. Our resale marketplace has top brands and resorts and helpful search features that make it easy to find the exact type of timeshare you’re looking for.
How to Sell Your Timeshare
Are you already a timeshare owner? If you’re interested in placing your timeshare for sale, the timeshare resale process is fairly simple. Your first step is to call one of TSO’s trusted representatives. We will gather the details of what you own to create an eye-catching advertisement. Using sophisticated marketing technology and having a trustworthy presence will help put the right timeshare buyer on your resale.
After a buyer places an offer on your timeshare, our preferred broker, Fidelity Real Estate, will offer their services to help facilitate the sale. As a full-service timeshare real estate brokerage, Fidelity and its licensed agents will assist with negotiations, writing contracts, navigating the Right of First Refusal, and more.
Contact Us Today!
If you’d like to learn more about buying, selling, or renting timeshares, contact us today at 1-800-610-2734, or email us at [email protected].
