If you’ve been researching the timeshare resale market, you’ve likely noticed an interesting pattern. Timeshares on the secondary market sell for a lot less than the retail price. We aren’t just talking about mom-and-pop operations, either: major brands like Disney and Wyndham see discounts of 40% or more on the resale market. But why are timeshare resales so cheap? The answer is pretty simple: people want to exit their timeshares, and their exit plan can mean massive savings for you!
What Are Timeshare Resales?
Timeshares are a lifestyle product, but lifestyles can change. As people age or their circumstances shift, a timeshare that was once a perfect fit may no longer meet their needs. When this happens, owners begin to explore their exit options. However, not all developers offer a clear exit path. This often leads owners to the resale market, which is one of the safest and most effective ways to exit a timeshare.
Nearly every listing you’ll find on the resale market comes from someone looking to exit their timeshare. It’s rare to turn a profit when selling a timeshare, so making money isn’t really the goal. Instead, these timeshares are priced to move.
So, Why Are Timeshare Resales So Cheap?
The deep discounts on the timeshare resale market are a simple matter of supply and demand. With more sellers than buyers, prices are driven down. These sellers are often motivated by life changes rather than profit, which is why timeshare resales are so cheap.
This may lead you to wonder: are these timeshares different from what developers offer? Is it difficult to exit a timeshare? And if resales are so cheap, why would anyone buy directly from a developer? Let’s explore the answers to these important questions.
Timeshare Resale vs Retail: What’s The Difference?
Since timeshare resales are so cheap, it’s easy to draw on the used-car analogy. After all, a timeshare depreciates in value much the same way a car does. Considering how large the price difference is, you might assume that resale timeshares are somehow inferior to their retail counterparts. Luckily for prospective buyers, this couldn’t be further from the truth.
Buying a cheap timeshare resale doesn’t mean you’re getting a secondhand experience. You’re getting the same accommodations and treatment as someone who bought from a developer. You get the same rooms, the same booking windows, and the same amenities. However, there are a few differences that might influence your decision.
Retail Perks and Resale Restrictions – Why Are Timeshare Resales So Cheap?
Some vacation clubs offer incidental perks to entice retail buyers. Take the Disney Vacation Club as an example: it offers several retail-exclusive benefits to attract new owners.
- Access to exclusive lounges and events
- Discounts on food and merchandise
- The ability to exchange DVC points to stay at other Disney properties.
There’s also one resale restriction: resale owners at the original 14 DVC resorts cannot book stays at newer resorts like Riviera or the Villas at Disneyland Hotel, and resale owners at newer resorts can only book stays at their home resort.
For some people, these perks can make or break their purchase decision. However, for many people, the perks aren’t worth the price increase. Before you commit to buying any timeshare, you should do your research. Identify any potential perks and restrictions, and factor them into your value assessment. If those perks are worth it to you, great! Otherwise, consider resale instead.
Why Are Retail Timeshares So Expensive Compared To Resale?
So if resale offers the same experience as retail, why are timeshare resales so cheap? We already mentioned how resale timeshares are priced to move, but there’s another factor to consider: overhead.
Being a timeshare developer isn’t cheap. Major vacation clubs are constantly building new properties, upgrading accommodations and amenities, and working on improving the customer experience. Add the price of marketing into the mix, and things can get pretty expensive. While maintenance fees help cover a lot of these costs, the biggest windfall comes from the initial sale. All of these overhead costs are why retail timeshares cost so much. By the time a timeshare has entered the resale market, someone has already paid for those overhead costs.
There are some benefits to buying retail. In addition to incidental perks, you can access newer properties and have a bit more control over things like the use year. Even so, from a purely financial perspective, timeshare resales are so cheap that they’re usually the better option.
Find Your Ideal Vacation Ownership Through Timeshare Resale
Are you ready to take the first step toward unforgettable getaways and lasting memories? Your dream vacation is just a few clicks away. Click the button below to start browsing our extensive collection of timeshare listings. Explore a world of stunning destinations and find the perfect resort that fits your travel style. Discover your next vacation adventure today!
Is It Hard to Exit a Timeshare? Not With Timeshare Broker Associates
Considering how many timeshares are on the resale market, you might assume that getting out of a timeshare is an ordeal. Thankfully, that isn’t the case. While exiting a timeshare can take time, the resale process is easy, especially if you work with a trusted real estate broker like Timeshare Broker Associates. We’re fully licensed, members of organizations like ARDA and the National Association of Realtors, and have decades of experience helping timeshare owners. We never charge upfront fees and handle everything from marketing to closing. Plus, our specialists are experts in leading brands like Marriott, Hilton, Disney, and more. Click below to learn more!
