Original Message:
Re: Have the Timeshare Resorts forgoten about the resale market (by Mary E.):
Actually, timeshares aren't "worthless" after you buy them, but they do seem to drop in value immediately--anywhere from 75 to 50%. I'm a Broker in Oregon reselling "Fractional Timeshares" which involve deeded ownership of a particular Unit in a resort. Oregon considers timeshares "real estate" and requires any reseller located in the state be a licensed real estate broker. I've sold regular timeshares, resale, for about 10 years and now do so on a limited basis. If timeshares were sold retail at the same price that resorts originally sold them to you, the broker would need to take the 25-50% in commission to match the marketing costs that it takes to command the higher value-- matching the marketing involved in the original sale. All that advertising, free stays, free meals, and all the other freebies that go along with original timeshare marketing is expensive. Nothing is free. Most brokers won't sell timeshares, or do so only as a favor to certain clients. They normally try to do so at a 6-10% commission. This is simply not worth the time and money it takes to succeed. In order to make resales on a commission basis worth doing, the commission has to be much higher, and most people get sticker shock when you tell them what it really costs. In addition, Resorts make showing these properties to prospective buyers nearly impossible. As a result, the market for resales is really limited to those who are already familiar with the resort. A smaller pool of prospective buyers, means less value. I'm a proponent of not engaging companies who charge up-front fees. I charge a straight commission and only take properties I believe I can sell. I'm one of the few in my area along the Coast who will even take a timeshare listing. Without professional marketing available to sellers, unfortunately it leaves a vacuum that attracts many less than honest Timeshare Scammers. Do your homework before parting with any money. If it sounds too good to be true, it probably is. Mary Englund