Most timeshares in the United States are sold via glitzy, high-pressure timeshare presentations by salespeople desperately trying to close. People who may be interested in a timeshare but not up for that kind of upsetting experience may be looking for another way. But once you gain an understanding of the secondary timeshare market, you’ll quickly find that it is not any better than the traditional way of buying timeshares.
But what if you’re a timeshare owner? You might wonder if you could tap into the timeshare secondary market to list and get rid of your timeshare unit, along with those pesky annual maintenance fees. It’s a nice thought, but the truth is that you almost certainly won’t make any money on the deal. And that’s if the timeshare developer doesn’t stop you from even listing it.
This article will take a look at the timeshare resale market, and why it is almost always a good idea to stay far away from it. We’ll talk about why timeshares are so hard to sell, why they seem so cheap online, and whether buying one of those cheap timeshares makes any sense. Finally, if you’re one of those timeshare owners looking for a better way, we’ll look at how Centerstone Group can show you the best exit strategy for your situation.
To get a better understanding of the timeshare resale market, it’s best to look at the answers to some frequently asked questions. This should help you see why the resale market isn’t a good exit option for an unwanted timeshare.
It’s hard to sell timeshares because nobody wants to buy them. The huge cost that comes with timeshares do not make them attractive to property buyers or investors.
Zealous salespeople often sell new timeshare buyers on the idea that a timeshare is an investment. They may even tell you that you’ll make money on it. Timeshare owners who have been through the wringer and realize that the vacation ownership experience is not worth it have found that selling a timeshare is not quite that easy.
Here are some of the reasons why selling a timeshare is so hard.
There’s no timeshare resale market to speak of. While other types of real estate appreciate in value and have buyers lined up, there’s no similar market for timeshares. While some Realtors may specialize in timeshare resales, even an experienced timeshare broker probably won’t be able to sell yours unless it is one of a few specific types of timeshare, like a deeded timeshare located someplace more exotic. (Think Maui instead of Orlando, Florida.)
Keep in mind also that so-called “timeshare resale companies” are often fraudulent. These timeshare retail scams start with a timeshare owner getting a cold call from a company that promises it has many people waiting to buy timeshares. The company then takes a large upfront fee and disappears.
Timeshare resale scams have been a problem throughout the United States for years. Many state attorneys general provide resources to fight these fraudsters.
The desperation to sell timeshares can be felt with a visit to the web. You can look at websites like eBay or Craigslist and find hundreds of timeshare listings boasting sales prices of $1 or even $0. The people trying to resell for these ridiculous prices are not doing so because it was their first idea. It’s because the secondary market does not exist in any meaningful way and they no longer hold any illusions about timeshare worth.
The low resale values you see on the internet reflect a time-honored law of economics: high supply and low demand equal rock-bottom prices. One study showed that 85% of timeshare owners regret their purchase. That’s a lot of timeshares, and without any real resale market, those owners turn to the internet, which means essentially trying to give them away.
And yet, most people still have trouble getting rid of timeshares or memberships in vacation clubs — even high-end products like Disney Vacation Club or Marriott Vacation Club are not immune to this problem. No matter how prestigious or exclusive your timeshare developer claims to be, the membership will come with hefty maintenance fees and other costs that drive away buyers.
Also, keep in mind that many timeshare companies don’t want you to sell your timeshare. They have you where they want you, and no company wants a paying customer to turn over a lucrative contract to someone else who might not pay their fees.
In many cases then, companies will use timeshare contracts to block you from transferring your timeshare to anyone else, even if you’re only trying to give your interest away.
No, buying a used timeshare isn’t a good idea — for the same reason that buying a timeshare at all is a bad idea. For starters, the timeshare resort may simply not allow an owner to transfer the unit to you.
Second, even if it did allow the transfer, you have another headache coming. You might think that buying a free timeshare is an incredible deal that lets you save money, but you’d be wrong. You are about to be on the hook for ever-increasing timeshare maintenance fees, special assessments, and other costs for the rest of your life.
Third, buying someone else’s timeshare is a bit like playing Russian roulette. As soon as you take over that timeshare, you’re subject to the terms of a contract you didn’t sign. If it turns out that the contract had terms you weren’t OK with, it doesn’t matter. That’s your contract now. And, as we’ve seen through this article, getting rid of that timeshare won’t be easy.
Fortunately, you don’t have to rely on specialized Realtors, eBay, or someone who is willing to take on a ruinous financial obligation for you. Centerstone Group is a team of professionals with decades of experience in the timeshare industry. We’ve helped thousands of timeshare owners get out of their contracts, and we can help you too.
But you shouldn’t just take out word for it. Our 4.81-out-of-5-star rating on the Better Business Bureau (BBB) website tells you more about our reputation and results than we ever could. We are also a BBB-accredited, A+-rated business with a reputation as the top timeshare exit company.
Understanding the secondary timeshare market likely won’t help you get rid of your timeshare. We have other options though, including contract cancellation, our proprietary pressure campaign, and more. Contact us today to see what we can do for you.
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