Have the Timeshare Resorts forgoten about the resale market

Im pissed, from what I have read. When you buy a timeshare you would think that they would let you know what the resale market is like. Maybe a oh by the way your timeshare is worthless after you buy it. I understand what redweek is trying to do, but is there any real way to recoup the thousands people spend on timeshare. I sure the resorts could make money off the resale market. If someone is willing to pay 30,000 on a timeshare why would that same person or another not pay the same amount on the resale market the product is the same. I wonder if someway could be developed to sell timeshares on the resale market the same way they do retail! Any Ideas on how to sell timeshare the same way the resorts do?

bobd157 wrote:

Im pissed, from what I have read. When you buy a timeshare you would think that they would let you know what the resale market is like. Maybe a oh by the way your timeshare is worthless after you buy it. I understand what redweek is trying to do, but is there any real way to recoup the thousands people spend on timeshare. I sure the resorts could make money off the resale market. If someone is willing to pay 30,000 on a timeshare why would that same person or another not pay the same amount on the resale market the product is the same. I wonder if someway could be developed to sell timeshares on the resale market the same way they do retail! Any Ideas on how to sell timeshare the same way the resorts do?

Why would you ever think a resort sales office would tell you about resales!

Their job is to get as much of your money and sell you one of their units!

Some very good resorts will have a resales office after all new units have been sold.

These resales offices will sell your unit and return units also. The last thing a new resort wants you to know about is resales and timeshare sites for you to learn about timesharing.

This is why I have seen the offers drop $5000 before I left the room. They know you can beat their price by thousands of dollars.

phill12 wrote:

bobd157 wrote:

Im pissed, from what I have read. When you buy a timeshare you would think that they would let you know what the resale market is like. Maybe a oh by the way your timeshare is worthless after you buy it. I understand what redweek is trying to do, but is there any real way to recoup the thousands people spend on timeshare. I sure the resorts could make money off the resale market. If someone is willing to pay 30,000 on a timeshare why would that same person or another not pay the same amount on the resale market the product is the same. I wonder if someway could be developed to sell timeshares on the resale market the same way they do retail! Any Ideas on how to sell timeshare the same way the resorts do?

Why would you ever think a resort sales office would tell you about resales!

Their job is to get as much of your money and sell you one of their units!

Some very good resorts will have a resales office after all new units have been sold.

These resales offices will sell your unit and return units also. The last thing a new resort wants you to know about is resales and timeshare sites for you to learn about timesharing.

This is why I have seen the offers drop $5000 before I left the room. They know you can beat their price by thousands of dollars.

Very frustrating! This entire timeshare industry has evolved from the very beginning around the resorts hiding the resale market. Maybe I will become a salesperson at my resort and unload my timeshare to someone for 20% what the retail is. Maybe red week could telemarket potential buyers and offer them a vacation package with the 90 min tour of course and them let them know, don't buy at the resort, enjoy your stay and then when your done with your presentation we have the same unit for 20% off.

bobd157 wrote:

Im pissed, from what I have read. When you buy a timeshare you would think that they would let you know what the resale market is like. Maybe a oh by the way your timeshare is worthless after you buy it. I understand what redweek is trying to do, but is there any real way to recoup the thousands people spend on timeshare. I sure the resorts could make money off the resale market. If someone is willing to pay 30,000 on a timeshare why would that same person or another not pay the same amount on the resale market the product is the same. I wonder if someway could be developed to sell timeshares on the resale market the same way they do retail! Any Ideas on how to sell timeshare the same way the resorts do?

It's a sad situation but developer timeshare salespeople are not in the business to inform prospective buyers about resales. If they did, they would be out of a job. You also have to remember that when you buy a developer timeshare you're paying the overhead that the developer has accumulated (sales people, hawkers, presentations, food, closings, attorneys, accountant, construction costs etc.). The developers are in business to make a profit.

It's up to the wise consumer to research before buying any big ticket item such as a timeshare. They would then learn about resales. The first timeshare we bought was from the developer. We didn't find out about resales until our rescission period had passed, but I don't blame the developer salesperson as he didn't twist our arm to sign on the dotted line.

I've always had the thought that "without developer bought timeshares, there would be no resales" and chalked our developer bought timeshare as a lesson learned.

Believe it or not there are some people that have bought from the developer more than once due to incentives that some developers offer.

Join the crowd! It was probably that experience that got you interested in the whole timeshare thing. And if you think about it, you probably want to go on vacation every year anyhow. Having a timeshare really helps make it happen. You may live longer, have more memories and a better life, thanks to that JERK who sold you something you could have gotten for nothing!

I did the same thing. But now that I got interested in vacationing/timeshares I learned how to get them on the cheap and have purchased 7 more. My friends and family are also enjoying them.

Statistics show most timeshare buyers are repeat offenders. Luckily you learned before your next purchase.

What I'm trying to say is, don't beat yourself or your salesman up about it. It's was a good thing and now you know there are even better.

orvillef2 wrote:

Join the crowd! It was probably that experience that got you interested in the whole timeshare thing. And if you think about it, you probably want to go on vacation every year anyhow. Having a timeshare really helps make it happen. You may live longer, have more memories and a better life, thanks to that JERK who sold you something you could have gotten for nothing!

I did the same thing. But now that I got interested in vacationing/timeshares I learned how to get them on the cheap and have purchased 7 more. My friends and family are also enjoying them.

Statistics show most timeshare buyers are repeat offenders. Luckily you learned before your next purchase.

What I'm trying to say is, don't beat yourself or your salesman up about it. It's was a good thing and now you know there are even better.

Thanks, it is nice to vent. I wish from the very beginning, when I received a phone call one night from a vacation package rep fulfilling for my resort, there would have been a nice disclosure about the future that lays ahead. I have learned my lesson. So for anybody that reads this, if you ever get a phone call offering a great vacation with resort presentation of course. Hangup and head to the resale market!

I have to say, I've been to probably 20 different presentations over the years. I have to think about them before buying!! Got a lot of free travel as a result. When I finally decided to buy, I started thinking about the housing market and it's somewhat the same thing, you buy a new house and when you sell it, it goes on the resale market. I started to google timeshare resale which gave me a lot of information. I then went on vacation to HI and went to talk with several realtors and the Westin themself. The pricing difference was amazing. The only really difference I see if that I can't trade for hotel days.

bobd157 wrote:

orvillef2 wrote:

Join the crowd! It was probably that experience that got you interested in the whole timeshare thing. And if you think about it, you probably want to go on vacation every year anyhow. Having a timeshare really helps make it happen. You may live longer, have more memories and a better life, thanks to that JERK who sold you something you could have gotten for nothing!

I did the same thing. But now that I got interested in vacationing/timeshares I learned how to get them on the cheap and have purchased 7 more. My friends and family are also enjoying them.

Statistics show most timeshare buyers are repeat offenders. Luckily you learned before your next purchase.

What I'm trying to say is, don't beat yourself or your salesman up about it. It's was a good thing and now you know there are even better.

Thanks, it is nice to vent. I wish from the very beginning, when I received a phone call one night from a vacation package rep fulfilling for my resort, there would have been a nice disclosure about the future that lays ahead. I have learned my lesson. So for anybody that reads this, if you ever get a phone call offering a great vacation with resort presentation of course. Hangup and head to the resale market!

I am not picking on you (cause your sure not alone), but I guess I am still not sure why someone would answer an "unexpected", out of the blue, phone call from a telemarketer and then be unhappy with the results. But it appears you learned your lesson, so thats the good part. Now continue to spread the word.

PS: Disclosure?? What's that?

The vast majority of people that bought their FIRST timeshare from the developer go on to buy other timeshare weeks on the resale market (as we did). Don't let your developer bought timeshare rain on your vacation parade. Use it to your advantage and realize that you are not alone.

I bought in the early days, from Marriott. They clearly warned us that we were buying for vacations and not as an investment. I don't know what the market is now, but there was a time when we could actually get our money back by selling.

When you buy anything, you must do due diligence on the sale. Not only that, but you must be clear about why you are spending the money, and remind yourself about that over time.

Snake oil salesmen will never tell you anything negative, at least not in direct terms. That's your job--due diligence. After all, it's your money. The salesman wants your money for himself, and there is no law against taking candy from a baby.

These companies are in the business of making Money!!!! I wonder what will happen in the future? Many of these companies are building 2 and 3 bedroom units and the prices are sky high! I just went to the Marriott presentation to see the 2 and 3 bedroom units. I posted the pricing on the conversions and new units on the Marriott discussion group. These companies are going to run out of people at some point to buy the larger units! I know from buying my Westin Villa on the open market that it would be difficult for me to buy another week at the Westin today! I also did a tour of the Westin North Villa and didn't even get to the look at a 2 or 3 bedroom. Pricing was way to high for my budget! You have to watch out for the sales people. I look at these phone call I get as a free vacation or airline ticket! :)

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

debbiea88 wrote:

These companies are in the business of making Money!!!! I wonder what will happen in the future? Many of these companies are building 2 and 3 bedroom units and the prices are sky high! I just went to the Marriott presentation to see the 2 and 3 bedroom units. I posted the pricing on the conversions and new units on the Marriott discussion group. These companies are going to run out of people at some point to buy the larger units! I know from buying my Westin Villa on the open market that it would be difficult for me to buy another week at the Westin today! I also did a tour of the Westin North Villa and didn't even get to the look at a 2 or 3 bedroom. Pricing was way to high for my budget! You have to watch out for the sales people. I look at these phone call I get as a free vacation or airline ticket! :)

I know what you mean. I've been seeing timeshares selling in the 50-60K range lately. I cannot imagine in my wildest dreams paying that much for one week of timeshare. I can't imagine what the people are thinking that actually pay that much for one week of timeshare. The highest amount we ever paid for a timeshare was 11K (only developer one we bought and it was in a very sought after location in a very popular gold crown resort) and I thought that was ridiculously high.

marye206 wrote:

Actually, timeshares aren't "worthless" after you buy them, but they do seem to drop in value immediately--anywhere from 75 to 50%.

Some timeshares ARE actually worthless as is evidenced on Ebay. There are many timeshares on that site on a daily basis that don't even get $1 bids.

This phenomenon came about due to postcard companies in the last few years taking timeshares that people want to get rid of, charging them $3000+ and then turning around and selling them on Ebay with starting bids of $1.