What is My Timeshare Worth?

In regards to what something is worth, a wise man once said, “Something is worth whatever someone is willing to pay for it.” What’s My Timeshare Worth?  This is one of the most difficult questions to answer in the timeshare industry. Most developers don’t want you to know that timeshares are like new cars driven off the lot. They depreciate immediately after you buy them. Most resort developers’ official response to the value of their timeshare is that “it is worth exactly what you paid for it no less and no more”

It is a hard pill to swallow if you try to sell a timeshare right after you purchase it because you will usually be able to sell it for only 70 percent of the price you just paid. Timeshares are best if used as vacation properties and not used as investments. Now that we have set some expectations let’s look at some hard numbers.

Most timeshares have 50 percent of fluff money built into them when they are sold by the developer. This money funds all of the free gifts, sales commissions, and the customer service items involved in the initial selling of the timeshare.  Think about all of the wooing and pressure that you were put under to buy your initial timeshare. When you resell your timeshare, you don’t have that advantage. You can’t take them to the beautiful vantage points, show them the great pools, the resort’s golf shop and fitness club, and all the great things that convinced you to buy in the first place.

With all of that being said there is a great market for timeshare re-sales, and it does not involve you being offered 50 percent of your initial price and a $1,000 “rebate” by a major “Timeshare” reseller. This is done so that they can resell your property for 65 to 75 percent of its initial value. Other companies want to give you an appraisal and have you list your vacation property with their company. They are usually very nice and tell you an inflated value of your property so that you are convinced to list with them. Most of these listings don’t sell because they are overpriced!!

Timeshares are a real estate item so the saying “Location, Location, Location” applies when referring to timeshare values. No matter what any inland resort salesperson tells you the most desired and valued time shares are in and around ocean locations. Oceanfront timeshares with “Prime” “Red” weeks hold their value better than any other units. At a pristine oceanfront resort you can usually get 75 to 85 percent in a private party sale. At most high demand inland resort you can usually expect between 60-70 percent of its initial resort prices.