If you're asking the title question, "should I buy a timeshare resale?" you've come to a good place for information. While no one can make the final decision for you, we can offer up the facts on what timeshare resales are and why you should buy one.
What is Timeshare Resale?
Timeshare resales are essentially timeshares being sold by owners that no longer wish to use their vacation ownership. One benefit of buying a timeshare resale is the immense amount of money you can save since timeshares rarely appreciate in value. This means you can ensure a vacation each year to make memories with your family for much less. Oftentimes some member benefits transfer from original owner to buyer, but be sure to ask your agent beforehand. Check out our blog to learn the differences between buying DVC Resale Vs. Direct for more information about the benefits that transfer.
Another bonus to buying a timeshare resale is the ability to browse listings right from home, rather than going through a long timeshare tour. You can search for the best vacation clubs to join, like Marriott Vacation Club or Hilton Grand Vacations. Each vacation ownership club has its own benefits, exchange options, and portfolio. Have you stayed in a resort that you absolutely LOVED and wanted to travel back to? Chances are, you can with a timeshare, and you can get a great deal when you buy resale.
Learn the basics: What is a Timeshare and How Does it Work?
Is Timeshare Real Estate?
The answer is yes and no. When purchasing a residential home, buyers are looking for potential investments or a place to settle down. The flow of buying and selling residential properties is normal, with buyers normally purchasing homes that have already been lived in rather than buying straight from a developer.
Timeshares are usually deeded, like real estate, but are not necessarily comparable. Timeshares do not increase in value over time, and it's not as easy to sell your timeshare. Buyers can't simply call an agent and schedule a private viewing of your ownership. Owners really do own a portion of their resort, but resale doesn't work exactly like the real estate market.
Is Timeshare Resale a Scam?
As we mentioned before, you may have heard that timeshare resales are not legitimate. While there are some companies or individuals out there that only look to prey on unsuspecting buyers and sellers, timeshare resale itself is not a scam. It's simply owners looking to sell their interests, usually with the help of a third-party.
If you're considering buying timeshare resale, know that we at Fidelity are Licensed Real Estate Agents who specialize in timeshare resales and connecting buyers to sellers—it's what we do best! While it is hard to find companies you can trust in a saturated market, you can trust Fidelity.
For more information and signs to watch out for, read our blog Is Timeshare Resale A Scam?
Timeshares Worth Buying
As mentioned previously, timeshares are not an investment. Timeshares worth buying are not going to appreciate in value. Depending on your travel preferences, you will want to look into which timeshares are worth buying. Will you want a points-based timeshare, for flexibility? Or, are you looking to vacation at the same place, at the same time every year?
Timeshares worth buying entirely depend on your preferences, because in the end, their value comes from being used over a lifetime of vacations!
How to Buy a Timeshare Resale
The process of buying a timeshare resale is relatively simple at first. If you're not sure which vacation club to join or what type of ownership is best, there are many resources out there that can help. With resale, you get to pick if you want to buy points or weeks, which brand you like best, and even your Home resort.
The best way to buy a timeshare resale is with a trusted, third-party company with experience in the industry.
Are There Any Legitimate Timeshare Resale Companies?
Great question! The answer is yes. As times are changing, the timeshare industry is, too. While some want you to believe the resale market is dead and full of scammers, this simply is not the case. We won't deny there are still scams out there, but it is possible to find a reputable timeshare resale company. When looking for a reputable company to buy a timeshare resale from, check the BBB, Yelp, and even ask for recommendations from your friends or family. Furthermore, the American Resort Development Association is a great source and indicator of a reputable resale company. Members of ARDA uphold a strict code of ethics and are vetted by professionals of the industry. If you're not sure where to turn for timeshare help, ARDA is a trusted source. Timeshare.com also has up-to-date information on the timeshare industry.
Best Timeshare Resale Company?
Another subjective question, but we believe we are amazing at what we do. Fidelity Resales has been in the resale world for over 20 years. Additionally, our team has sold more Disney Vacation Club memberships than anyone else. We are accredited by the BBB and ARDA, and we have been a featured re-seller for many large brands in the industry. Not to mention, we specialize in both sides of the timeshare resale process. That means we are able to help you get the best service and support when buying OR selling your timeshare.
How Can I Buy A Timeshare?
Should you decide to buy a timeshare resale and you've found a listing that you love, it's simple to make an offer right online, or with the help of one of our agents. Normally, buyers will pay for closing costs, but this is something that can be negotiated. One more thing to look out for is how many points are left in the owner's Use Year, or how long you will have to wait to use the ownership. This can be a smart negotiating tactic when it comes time to buy.
Navigating the Right of First Refusal
Many industry professionals will advise you to a Licensed Real Estate Agent when buying a resale, because it can be quite a process on your own. If your offer is accepted by the seller, don't jump for joy just yet. Your agent will then send the signed contracts to the developer to undergo the Right of First Refusal.
The right of first refusal is a clause in every timeshare contract, no matter the developer. It allows the developer a chance to reclaim the ownership before it is sold to a new owner. The developer can either choose to step in as the buyer and accept the contract as is, or allow the sale to proceed between the original parties.
Your agent at Fidelity will handle all communications with the developer and let you know if they waived or exercised the ROFR. If the developer chooses to take over the sale, don't fret! There are many listings available, and we can help you find another one.
Something to keep in mind when the developer exercises the ROFR, is that they may be reclaiming all of the ROFRs that come in from a specific resort. Or, the offer may have been within their means to buy it back themselves. While those $1 listings on eBay are a great steal, the developer will likely exercise the ROFR in this case.
Benefits of Timeshare Resale You Don't Always Hear About
We already covered the savings that come with resales, but there are other benefits of timeshare resale that not many people know. If you're looking to add onto your existing ownership, you can do it for much less while keeping all of your original benefits. Many DVC owners will look to the resale market to buy more points, for bigger and better vacations.
While there are some restrictions with resale, like which resorts you can use your points at, there are some ways around that. Vacation exchange networks like RCI or Interval International allow owners to sign up and trade their points or weeks for thousands of other resorts around the world. This means you don't have to travel back to the same resort every year, or even within your brand. DVC owners can trade their points for a stay at a Hilton resort, and vice versa.
So, Should You Buy a Timeshare Resale?
Let us know below what your take is on buying a timeshare from the resale market. If you're interested in the benefits of vacation ownership, buying a resale timeshare may be an option you should consider.