Navigating the Timeshare Resale Market: A Comprehensive Guide

Understanding Timeshare Resale

Timeshare resales occur when existing owners sell their timeshare interests, often facilitated by classified ads, auction sites, and specialized firms. The resale market has gained momentum as buyers recognize the substantial savings, largely due to the absence of hefty marketing costs that inflate the price of new timeshares. According to ARDA, the average cost of a new timeshare in 2019 was approximately $22,942, while resales often offer significantly lower prices.

Key Considerations When Buying Resale Timeshares

Before committing to a timeshare resale, it's crucial to conduct thorough due diligence:

• Verify the Location: Don't rely solely on the seller's claims. Visit the property yourself or ask someone you trust to inspect it on your behalf.
• Demand and Amenities: Assess the timeshare's demand, its proximity to essential services, attractions, and whether it's situated in a prime season for exchanges.
• Unit Quality: Examine the floor plan, design, and maintenance. Units converted from motels may vary in quality, so look for signs of good management.
• Hidden Costs: Inquire about maintenance fees, property taxes, and any special assessments. Ensure these costs are up-to-date to avoid unexpected expenses.
• Broker Credentials: If using a broker, choose a licensed professional to avoid scams. Place your funds in escrow until the transaction is complete.
• Market Research: Investigate the going rates for timeshare units in your desired area. Utilize auction sites like eBay and resources like bidshare.com for price comparisons.
• Unit Size: Larger units may offer better value and exchange options. They're also more suitable for accommodating larger groups.

The Financial Aspect of Timeshare Resales

While the initial purchase price of a resale timeshare is lower, it's important to consider the ongoing costs. Maintenance fees, which can vary widely among resorts, are a recurring annual expense. According to the 2020 State of the Vacation Timeshare Industry report, the average annual maintenance fee was $1,000. Selecting a resort with reasonable fees can help keep long-term costs manageable.

The Importance of Timing and Motivation

Purchasing during the high season can enhance your exchange opportunities. Additionally, understanding the seller's motivation for selling can provide insight into any potential issues with the property or its management.

Making an Informed Decision

Investing in a timeshare resale can be a smart move for your leisure lifestyle, but it requires careful consideration. By researching thoroughly and approaching the transaction with a critical eye, you can secure a vacation home that brings joy and relaxation for years to come.

For further information on timeshare resales and to ensure a safe transaction, consider visiting the American Resort Development Association (ARDA) website or consult with a licensed real estate agent specializing in timeshares.