With baby boomers reaching their peak earning years and as their aging parents are
passing their assets to their children, the monetary capacity to purchase resort timeshare
resales has never been as high for the target buying market.
We’re seeing the largest transfer of wealth in our country’s history right now.
Resort timeshare resales will continue to grow as a place for households to park some of that wealth.
Given differences in timeshare unit quality and in the different market areas,
resort timeshare resale prices vary widely across the country. In general, buyers for new
timeshares today can expect to pay an average of $18,500 retail price, plus annual
timeshare maintenance fees, for a two-bedroom high season timeshare unit that they
can use one week a year. In contrast, resort timeshare resales are available for significantly less.
Resale units can sell 25 to 50 percent or more below the original price, making
resort timeshare resales a popular value with cost conscious, vacationing households.
The absence of appreciation is not a hindrance for most buyers. Unlike those in
the primary home ownership market, timeshare buyers are mainly looking for the cost-effective
use of the unit and the resort facilities.
Although timeshare values can appreciate in highly desirable markets such as Hawaii,
and New York City, most resort timeshare resales have little appreciation when bought at retail
price.
Compare the vacation cost economics represented at the new sales table with a resale
price and the vacation savings numbers make more sense.
Timeshare resale buyers shop for the best value and most pay cash. They usually
want someone else to handle contracts and closings.
Some buy to exchange to different resorts. Many buy for a specific location or region
like mountain, golf, waterfront or beach resorts. Also they will buy additional
time in units at a resort where they already own.
More brokers will enter this timeshare resale specialty and learn how to market
and close resort timeshare resales as a sole profession.
Important Trends
- The ever expanding internet will continue to help resort timeshare resales.
- More timeshare resorts will be built.
- First time buyers will seek resort resale values.
- Consumers will fully understand that timeshare “Resale beats Retail” for value.
- A timeshare multiple listing system will attract cooperating brokers.
<< Previous : Top Ten Best Selling Resorts | Next : Timeshare Consumer Advice >>
Timeshare Resale Study - Table of Contents