Frequently Asked Questions About Buying a Timeshare on the Resale Market
What is a timeshare resale?
A time share resale is simply a timeshare villa (either a week, interval, or points), which is being sold by the current owner rather than by the resort. In most cases the owner purchased it directly from the resort at a much higher price than the asking price on the resale market.
What is the difference between a deed week and vacation clubs and points?
Deeded weeks are exactly what they sound like: A deed to a week at a specific resort. It is usually a specific week and unit number; however usage is usually floating, meaning you are not limited to using it during your deeded week.
Vacation clubs are an ownership that is points based and is often called a membership. There is usually a set number of years to use the property and then the membership expires or you spend more money to renew the membership. Members receive an annual allotment of usage points that they can exchange for vacation accommodations at resorts within the club’s network.
Points-based ownership allows for more flexible usage options, allowing you to book vacations for a shorter or longer period (or in a smaller or larger unit) than the traditional week-long timeshare interval.
Most deeded week systems have an internal network of resorts where the usage resembles a points system, offering the best of both worlds. The security of a tangible deeded week, and the flexibility of a points based allotment for usage.
All forms of timeshare ownership can be bought and sold on the resale market.
Why are timeshare resales less expensive than purchasing from a resort?
Buying a timeshare from a resort presentation sales center comes with significant marketing related expenses, and it directly impacts the purchase price of the timeshare unit. Most sales centers budget to convert between 10%-15% of all customers on presentations, which means the 15% that do purchase bear the expense of the 85% that do not purchase. So the 15% pay for the Disney tickets, attraction tickets, resort gifts, marketing, and all the fixed costs that go into bringing in 75-125 families per day that choose not to purchase.
When buying from a current owner, you pay only the fair market value of the timeshare – a price that’s often 20 to 70 percent less than the retail price. You do not pay the marketing expense associated with the resort sales centers.
How is the “market value” determined for resales?
The market value of a timeshare unit on the resale market is influenced by a number of factors. Some of the important factors are the time of year (season), location, resort amenities, size of the unit, unit amenities, and, of course, market demand. Timehares located on the Ocean at a sunny time of year are always a good bet to maintain market value.
If you already own a timeshare and are curious about its current resale value, please feel free to inquire with one of our approved realtors and they will be glad to give you a free estimate of what you can expect your unit to bring on the resale market.
What are maintenance fees?
A maintenance fee is a mandatory fee that the resort management company or homeowners association charges its owners. This fee most often covers property taxes, utilities, insurance, and maintenance expenses including beautification of the unit and property. Maintenance fees are generally billed on annual basis, however, certain resorts allow you to pay them monthly.
If you purchase a resale time share, you will be expected to pay all maintenance fees and dues, however those fees will be disclosed to you during the purchase and closing process.
If I purchase a time share resale, will I receive the same benefits offered by the resort?
Ownership rights transfer to the new owner when you purchase a resale. However, some companies that offer internal usage networks may have restrictions that apply to units purchased on the resale market. Those companies know the value of the resale market and are attempting to force customers to buy the second, third, or multiple weeks directly from them. It is up to the consumer to decide if it is worth paying 3-4 times more for a unit to have the ability to use some usage perks designed by the developer, such as the ability to split the week up into two smaller pieces. In most cases, any and all rights of ownership are transferred when you purchase a resale.
How is ownership of the timeshare resale legally transferred to me?
Resale timeshare closings can be legally complex, but complete timeshare closing and title transfer services are available from the Timeshare Closing Group. Our services are all-encompassing (including deed preparation, recording, management of the escrow of funds, and verification of timeshare usage and unit information), or they can handle any single aspect of the closing which you do not feel capable of handling yourself. We hope you choose the Timeshare Closing Group, but rest assured title transfer services are available from other well respected companies. In most cases, the buyers are expected to pay the fees associated with the closing and transfer of the title.
What resale companies are Timeshare Closing Group approved realtors?
The Timeshare Closing Group currently recommends the following as approved realtors:
Concierge Realty – Orlando FL www.myconciergerealty.com/
FiveStarTimeshare Realty – Montgomery TX www.fivestartimesharerealty.com/
Timeshare Brokers Sales – Tampa FL www.timesharebrokersales.com/
Timeshare Resales USA – Orlando, FL http://www.timeshareresalesusa.com/