Marketplace to Buy Resale Timeshares

A timeshare, in simplified terms, refers to an arrangement in which several joint owners have the right to use a vacation property during an allotted period of time (often a week during a specified season or range of weeks). Timeshares are most often specific units, condos, or villas located at a specific “home” Resort property.

For example, if you own a two-bedroom timeshare at a Florida resort that you can use during the Summer season every year, then your vacation accommodations are guaranteed every year as long as you confirm/reserve your week during the season.

There are many things that set a vacation timeshare apart from the average hotel but the main difference is the quality of the actual rooms available. Compared to traditional hotel rooms, timeshares are far more deluxe and can range in size from studio units to villa suites with three or more bedrooms that can often sleep ten or more guests. 

Timeshare units offer additional conveniences and comforts not available in typical hotel rooms like fully-equipped kitchens with stove, oven, dishwasher, cooking gear, dishes, utensils, etc and in-unit washer/dryer (most units). In addition to the in-suite amenities, Timeshare resorts also provide an extensive range of on-site activities and amenities. Many resorts offer championship golf courses, ski mountain access, water complexes and world-class spas.

Timeshare maintenance fees are fees that timeshare owners are required to pay on an annual or regular basis to cover the expenses of maintaining and operating the timeshare property. These fees are in addition to the purchase price of the timeshare.

Maintenance fees vary depending on the location, size and amenities of the timeshare property. The fees typically cover the costs of routine maintenance and repairs, such as landscaping, cleaning, and repairs to the building or unit. In addition, the fees may cover expenses such as property taxes, insurance, utilities and other operating costs.

Timeshare maintenance fees are usually determined by the timeshare resort or property management company based on a budget developed each year. The budget takes into account the expected costs of maintaining the property, and is divided among the timeshare owners based on their share of ownership. Failure to pay these fees can result in penalties, loss of ownership and/or impact to credit record.

Timeshare seasons refer to the different periods of the year when timeshare owners can use their units or properties, and the level of demand and cost associated with those periods. Timeshare seasons will vary by location and resort and typically categorized and defined by high demand, average demand and low demand. High demand season typically commands the highest cost and is the most popular time for timeshare owners to use their units. Those looking to own a timeshare will want to consider what season/time of year they want to vacation in, depending on their resort of choice and general vacation goals

There are several reasons why resale timeshares are often priced significantly lower than those sold by developers or resorts:

1. No significant marketing or sales costs: When a developer or resort sells a timeshare, a significant portion of the purchase price goes toward marketing and sales costs, such as advertising, sales commissions, and overhead expenses. That’s how they offer guests $200 or other incentives to attend a timeshare presentation! In contrast, resale timeshares are typically sold by the owner or through a resale broker, which eliminates significant costs.
2. Depreciation: Like some assets and real estate, timeshares can depreciate in value over time. This means that the resale value of a timeshare may be lower than its original purchase price, especially if it is an older unit or located in a less desirable area or season.
3. Limited market demand: While there are many people interested in purchasing timeshares, the market for resale timeshares is more limited than for new ones sold by developers or resorts. The “resale” timeshare market is mostly fragmented, untapped and unknown which result in significantly lower resale prices due to lesser demand.
4. Lack of financing options: When purchasing a new timeshare from a developer or resort, buyers may have access to financing options that are not available for resale timeshares. This can make it easier and more affordable to purchase a new timeshare, which can increase its value and price.

Overall, resale timeshares can be a good option for buyers who are looking for a lower-priced vacation ownership opportunity, but it is important to do your research and understand the costs and benefits of both new and resale timeshares before making a purchase decision.

Right-of-First-Refusal (“ROFR”) is a clause that may be required if it is included in the timeshare deed or contract you are purchasing resale from an owner. It states that the Timeshare Resort holds the right to purchase the timeshare and if the Resort exercises ROFR then the Resort would purchase it at the same sales price that was agreed-upon between the Seller and the Buyer. The Closing Company will handle any required ROFR process and keep both parties informed.

Closing process can take 3 to 6 months or sometimes longer depending on many factors including but not limited to: time it takes for the deed/contract to get recorded; time it takes for the Timeshare company to process the transfer to the new owner;  responsiveness of both the Buyer and the Seller on completing requirements which include providing information/documents, signing and notarizing agreements, etc.