While the resale market is one of the best ways to sell a timeshare responsibly, setting realistic expectations is important. While selling your timeshare can help you recoup some of the cost, timeshares are not a financial investment, and rarely sell for as much as you paid.
While some timeshare resale scams will make unrealistic claims about high returns and instant sales, a legitimate resale company will tell you to temper your expectations. In this guide, we’ll discuss how to determine the worth of your timeshare, so you’ll have a better idea of what a resale looks like and what you can expect during the selling process.
What Determines Timeshare Resale Value?
Timeshares are a luxury product, similar to a car or a boat. As a result, they don’t typically appreciate in value. As a rule, timeshares sell for less than their initial price, sometimes going for less than half what you originally paid. However, as with any market, resale prices depend on what people are willing to pay. This is why we say “as a rule,” rather than things being absolute: it’s not impossible for a timeshare to appreciate in value, but that requires a confluence of factors and a willing buyer.
So what factors determine what a timeshare resells for? In many cases, they’re the factors that determined what you paid for the timeshare in the first place.
Brand
Timeshares from reputable brands tend to retain more value than those from independent developers. These timeshares are often part of vacation clubs, making them more flexible. They may also integrate with a larger ecosystem, such as Marriott Bonvoy. Disney Vacation Club, in particular, tends to hold more resale value due to brand loyalty and its exclusive connection to the Disney parks.
Resort
While owning at a specific resort is self-explanatory for fixed-week and independent timeshares, it also matters a lot for vacation clubs. Many vacation club memberships are linked to a home resort, where owners get priority booking privileges. Resorts with luxurious amenities or in high-demand locations tend to fetch higher prices in the resale market.
Ownership Type
There are many types of timeshare, and the type you own strongly influences its resale value. Many new timeshares are points-based, which are flexible but more abstract. Fixed-week timeshares are more rigid, but some buyers value them for their consistency; you don’t need to make reservations in advance!
While the value of different types of timeshare is subjective, the type of timeshare you own determines other factors that a potential buyer will look for:
The value of a fixed-week timeshare is determined by its use week. A timeshare’s use week refers to the specific week in the year you’re allowed to stay there: use weeks during peak tourism season, or during major holidays, tend to go for more than off-peak weeks. For floating-week and fractional ownership timeshares, this role is taken by the use season instead, but the same principles apply.
Other factors to consider for deeded-week timeshares include whether they can be used annually or on alternating years and the unit’s size and type. The more often you can use the timeshare and the more luxurious the accommodations, the more it will sell for.
For points-based timeshares, point allotment is the biggest determinant of resale price. Having more points means having more buying power when booking a stay. You can use the points to book a single, elaborate vacation or multiple smaller ones. Generally, larger point allotments sell for more, but factors such as home resort and usage limits can lead to greater variance.
Common Pricing Misconceptions
Of course, even a perfect combination of the above factors does not mean that you’ll recoup the cost of buying a timeshare from the developer. Timeshares, almost invariably, depreciate in value over time. Even if you were to turn around and sell one immediately, without ever using it, you likely wouldn’t break even. Why is that?
Retail vs Resale
When you’re buying a timeshare from the developer, a big portion of the price is overhead. The timeshare developer must pay their sales staff and marketing team, as well as all the fees and taxes associated with selling real estate. There’s also the matter of profits: these are businesses, and the bulk of the income from a timeshare purchase comes from that initial sale.
Since buying directly from the developer is so much more expensive than buying on the resale market, many developers attempt to sweeten the deal with exclusive perks. These range from branded merchandise and lounge access to internal vacation exchanges and VIP services. These perks aren’t included with resale purchases, which can further lower their perceived value.
Transfer Fees
Title transfer fees are another factor driving down prices. These are fees charged by the resort developer and vary by brand. Some brands may charge several hundred dollars. Others, several thousand. Certain brands don’t charge anything at all. It’s important to check the terms in your contract before you begin the resale process.
Typically, the buyer pays transfer fees and other closing costs, which limit how much they’re willing to pay. You can make your timeshare more appealing to buyers by offering to pay these costs and cover maintenance fees for the first year. This will reduce the amount you make from the sale, and perhaps even cost you money, but it’s an option if you’re looking to sell quickly.
What Does a Timeshare Resale Look Like?
So with all of these factors in mind, what does a typical timeshare resale look like? What can you expect? Well, if you’re working with a reputable timeshare company, here’s what it looks like.
Research the Market
Before selling your timeshare, you should check a reputable resale site like Timeshares Only to see the average resale price. It’s important to dial in what people are willing to pay. Consulting with other timeshare owners can help you figure out the average sale price, and experts at reputable resale companies can offer their own recommendations.
Be Patient
Selling a timeshare is not a fast process. You could get lucky and find a buyer almost immediately, or your timeshare could be on the market for a while. The fact is, timeshares are a buyer’s market, and it’s impossible to know how long a resale will take. Working with a well-known company in the timeshare space will help you get more eyes from buyers.
Let Timeshares Only Help Sell Your Timeshare
You don’t need to go through this process alone. If you need help selling your timeshare, Timeshares Only can help. It’s a trusted name in the industry with over two decades of experience helping owners sell and rent their timeshares. Their experts can help you determine a fair price for your timeshare and get it in front of prospective buyers on their timeshare marketplace. As a Featured Reseller for ARDA’s Coalition for Responsible Exit, they’re dedicated to making the selling process as smooth and seamless as possible.