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Original Message:
current market for timeshares (by R P.):
patrickb41 wrote:I am wondering what the current market is for timeshares. Given the current credit crisis in the financial markets and a poor real estate market, it seems that supply of timeshares would be increasing while demand is falling. However, it seems that information is hard to find on sales prices and inventory. So, how does one go about pricing a resell timeshare in this market? I read that sellers should expect to sell their timeshares at 1/4 to 1/3 of the developer price....
In my opinion, with the economy on the brink of a recession, luxury items such as timeshares will be the first to go (unpaid balances and unpaid maintenance fees) and there will be millions of timeshare foreclosures. Timeshares are not a necessity, they are a luxury.
As far as trying to come up with a price to sell your timeshare, there's really not a single rule concerning such. It can be difficult, in many cases, to place a dollar amount on a resale timeshare.
A person that bought resale in the first place may want on the resale market what they paid initially, however a person that bought from the developer will NOT get what they paid initially. If someone wanted to pay developer prices, they would simply buy from the developer and not resale and get whatever perks a developer offers.
With the exception of a few high end timeshares (Marriott, Hyatt, 4 Seasons, Westin, Disney etc.) a resale will bring approximately 1/4 to 1/3 of what was paid the developer. That is if you can sell it at all. Some timeshares can't be sold for even $1, which is evidenced on Ebay. It all depends on the popularity of your resort and it's location and the time period owned (it's all about supply and demand).
One major thing to consider when buying a timeshare in the first place is that it's much easier to BUY a timeshare than to SELL a timeshare. Proof is in the millions that are for sale on the resale market.