Not a good time for Timeshare Resales

[readytoretire]

I have some prime deeded weeks at some prime properties that I bought many years ago. I did buy them as resales but still had to pay a decent price for some of them because of location and week. I have looked on several sites, Redweek, Ebay, TUG, etc... and what I have noticed is that many of the deeded week properties are for sale for zero dollars and the sellers are paying the closing costs! What is going on? Really? I do not expect to get 10K for any of my listings but when you own June weeks at the beach in SC and NC and week 52 in the NC Ski mountains you do not want to give away your timeshares and I do not think I should pay the closing costs. I have been able to rent them if not using for a good profit but the point is I do not want my children to be burden with them when I am gone. I do not know if this is all due to covid that deeded sales have tanked recently but I am just rrying to decide if it is worth holding on for a bit to see if this improves or not. Any opinions?

 

[rrsafety]

My two cents is if you can rent them, even at cost, why not wait 18 months to see if things pick up? If you believe it is COVID related, then wait. If it is a fundamental shift in the nature of the TS market, then I suppose dumping now is as good as dumping later.

 

[Shankilicious]

Wait. Right now is the worst it's ever been in the timeshare world in general. There's so much uncertainty with Covid travel restrictions and people's jobs being up in the air, lavish vacations are the last thing the majority of Americans are thinking about or actually spending money on.

Sent from my SM-G892A using Tapatalk

 

[TheTimeTraveler]

At the current time most Timeshares are worth little or nothing; blame it on the great recession, blame it on competition, blame it on Covid, etc. With things ever improve or not? No one really knows for sure.

The resale market is flourishing with bargains and a lot of folks want to get out for their own various reasons......


.

 

[PigsDad]

Timeshares have been on a constant decline for decades. The same questions were asked after the 2008 market crash, and no, timeshares did not recover. And they won't recover from this current environment. All they do is go down, so learn to get as much value out of using them as possible, and assume you will have to give them away or even pay a bit to get rid of them. That is just the harsh truth.

Kurt

 

[DaveNV]

Make note that your children are not required to inherit your timeshares. They can specifically deny to receive them, and they will revert to the HOA. There are searchable threads on Tug about this.

I agree with the others - you can wait it out, but realistically, you may not find nearly the return on your investment that you might be expecting. As I'm sure you understand, you're more likely selling time at a resort, not true real estate in itself. But if you've gotten your use from them, then why NOT give them away, if you're done with them, and you know your kids don't want them? If there is even a modest value, giving it away and asking the Buyer to pay closing costs is still a good deal for the new owner. But even if not, and you do end up paying closing costs, there are companies who will handle the paperwork and do the transfer for just a few hundred dollars. (LT Transfers is among the best, and they're Tug members.) Paying a few hundred dollars in closing costs is still lots cheaper than paying the next maintenance fee, when it comes due. Sometimes it's better to cut your losses, and get out from under the obligation.

Dave

 

[Magus]

If you ever buy a timeshare with resale value you mind you have already lost. This is one of the worst times for resale at that. Assigned weeks are also worth less than flex. If covid has shown nothing flexibility is worth something.

 

[Magus]

Wait. Right now is the worst it's ever been in the timeshare world in general. There's so much uncertainty with Covid travel restrictions and people's jobs being up in the air, lavish vacations are the last thing the majority of Americans are thinking about or actually spending money on.

Sent from my SM-G892A using Tapatalk

this was true in 2q20 but not since. Very few white collar folks are worried about their job and people want to travel, hence the reason hospitality companies EV is 90% of pre pandemic even with most revenue down 70%

 

[dioxide45]

Timeshares have been on a constant decline for decades. The same questions were asked after the 2008 market crash, and no, timeshares did not recover. And they won't recover from this current environment. All they do is go down, so learn to get as much value out of using them as possible, and assume you will have to give them away or even pay a bit to get rid of them. That is just the harsh truth.

Kurt

^^^THIS^^^

After the 2008 crash, certain timeshares may have regained some of their losses but most did not. Those that did never got back to anywhere near where they were prior. In the world of timeshare, what goes down stays down. Developers are also always looking for ways to devalue resales. In fact, if the OP were to have looked at their timeshare value before the pandemic, it probably would have been the same. Unless they are either uber prime resorts, prime season and likely name brand, they won't have much value. Then or now.

 

[Patri]

If you still own the timeshares when you die, tell the kids NOT to pay any maintenance fees, and to contact the resorts to take them back. The resorts may fuss and threaten and refuse, but eventually they will have to. You won't care about your credit rating anymore.

 

[RunCat]

The travel industry is shifting to more flexibility. A fixed week in a fixed location is a hard sell in the age of AirBnB. Things might change, but I tend to doubt it. In addition, think about this: If you think it will be a burden on your children to own it without paying for it, it will likely be even more of a burden on someone who is actually paying for it.
Sadly, things change. :-(

 

[WackyLucy]

....the point is I do not want my children to be burden with them when I am gone...

I cannot comment knowledgeably about your particular timeshares or the current resale market for them.

I will merely point out that unless your children are already currently named on your deeds as co-owners, they do not have to be "burdened" with your timeshares when you are gone. They need only disclaim them as unwanted items of inheritance at that time.

 

[CPNY]

I have some prime deeded weeks at some prime properties that I bought many years ago. I did buy them as resales but still had to pay a decent price for some of them because of location and week. I have looked on several sites, Redweek, Ebay, TUG, etc... and what I have noticed is that many of the deeded week properties are for sale for zero dollars and the sellers are paying the closing costs! What is going on? Really? I do not expect to get 10K for any of my listings but when you own June weeks at the beach in SC and NC and week 52 in the NC Ski mountains you do not want to give away your timeshares and I do not think I should pay the closing costs. I have been able to rent them if not using for a good profit but the point is I do not want my children to be burden with them when I am gone. I do not know if this is all due to covid that deeded sales have tanked recently but I am just rrying to decide if it is worth holding on for a bit to see if this improves or not. Any opinions?

Seriously, Free timeshares? I never heard such a thing!!

If they are prime weeks in prime properties, consider them valuable if you’re able to get out of them quickly and easily. The zero price isn’t the bad part, it can take a long time to find a willing “buyer”. There is a reason why free free free is attached to the listing. Welcome toTUG

 

[PigsDad]

Seriously, Free timeshares? I never heard such a thing!!

 

[TUGBrian]

has been very little change in the resale market pricing compared to pre-covid....its hard to go down from zero!

admittedly the already small pool of potential buyers has likely gotten smaller however.

 

[WVBaker]

My two cents is if you can rent them, even at cost, why not wait 18 months to see if things pick up? If you believe it is COVID related, then wait. If it is a fundamental shift in the nature of the TS market, then I suppose dumping now is as good as dumping later.

They need to keep in mind that those maintenance fees are, without much doubt, going to increase each year.

 

[bnoble]

when you own June weeks at the beach in SC and NC

If those June weeks are later in the month, oceanfront, and with broader name recognition (e.g. Marriott, Hilton, etc.) then yes, they are probably worth something. If they are not oceanfront, or early June, or not a place with a name that Joe Sixpack has ever heard of, then not so much. That's not to say you can't find someone willing to give you a few bucks for them, but it will be more work for fewer bucks.

week 52 in the NC Ski mountains

When I think about annual ski vacations over New Years, I am not thinking about North Carolina as a destination, no matter how nice the resort is.

 

[easyrider]

has been very little change in the resale market pricing compared to pre-covid....its hard to go down from zero!

admittedly the already small pool of potential buyers has likely gotten smaller however.

Actually, one of my deeded timeshares at a premiere golf resort included a free year of use and closing costs. I think it was around $1,100 to be rid of it.

Bill

 

[SkyBlueWaters]

Owners are even hesitating units they own because of CV and related costs to travel. People are still waiting for the 2k stim check, so...prolly not any discretionary left for anyone with barely surviving status.

 

[Magus]

SBW - I don't think costs of traveling/timeshare is an issue (certainly CV is for ~half the country). Most middle class and above did not lose their job with the exception being some small biz owners. The job losses were concentrated largely among working class and part time workers in hospitality, retail and a few other industries and a very large portion of them actually came out ahead not working ($400-$600 weekly + core unemployment > $12-14 hr + stimulus checks). We still have a hard time finding willing workers at even 5% above pre-covid rates because no one is in a rush to work.

The average family actually has done better in the last 12 months than normal - Typical family of four received $3,400 tax free last april/may and $2,400 in January with stimulus checks + less driving costs - nearly $6k is ~15% of typical after tax income for median household income. Plus all student loan payments and interest (well, 90% of them - all public student loans) have been deferred for over a year as well and a large % of the population deferred their mortgage and many are not paying rent. 2020 might be the best year for consumer's balance sheets in the history of the US with a gargantuan savings rate. The personal savings rate in 2020 in the US was a whopping 16%, vs a typical 2-5%.

The consumer is in great shape in general in the US (yes, there are exceptions of course) which is why leisure travel is actually quite good in the US except cruise lines (look at ABNB, CHH, WH share prices - higher than pre-pandemic). It's various segments of the business world that are hurting badly and of course the US debt balance sheet and biz travel is still down about 75%. I think time-share owners in general probably skew older than average which are less likely to travel and be more worried about CV.

 

[alexadeparis]

i personally have been readjusting my portfolio with the many free or nearly free units with an eye towards lowering overall MF while getting the same or more points. I will be dumping some lesser units at zero and will be happy just to find a willing taker.

 

[Gypsy65]

Timeshares have been on a constant decline for decades. The same questions were asked after the 2008 market crash, and no, timeshares did not recover. And they won't recover from this current environment. All they do is go down, so learn to get as much value out of using them as possible, and assume you will have to give them away or even pay a bit to get rid of them. That is just the harsh truth.

Kurt

I’m not sure

I think that some of the old timeshare issues are now slowing starting to be addressed and believe it will be a little while for it to turn around
Not that your ownership will increase value. But that the benefits and ways to use it will be transferable to any buyer

Timeshares are big business and if all these resorts want that wheel to keep turning they’ll have to make them more appealing for resale buyers not just for them

I also think that some people may not want to jump on a jet and go travel especially if they’re hard core Covid scared or someone they knew died.
Therefore maybe prompting them to look at a TS for the ease and localized resorts that are easily travels to via a car

 

[Gypsy65]

They need to keep in mind that those maintenance fees are, without much doubt, going to increase each year.

I get the fees go up each year but so did the cost of my car
Went up $20,000 in 2 years

I also get that we all want a deal but if you are at a resort and let’s say you’re there for $100 per night. I’d bet someone else is there for much much more

I’ve said this before but if we all bought a $50,000 motor home which would be junk at that price
We would have insu. Storage. Depreciation Camping fees etc
After a few years it wouldn’t be road worthy
After 10-20 years you would also pay to have it hauled away and have always had the same accommodations

 

[WVBaker]

I get the fees go up each year but so did the cost of my car
Went up $20,000 in 2 years

I also get that we all want a deal but if you are at a resort and let’s say you’re there for $100 per night. I’d bet someone else is there for much much more

I’ve said this before but if we all bought a $50,000 motor home which would be junk at that price
We would have insu. Storage. Depreciation Camping fees etc
After a few years it wouldn’t be road worthy
After 10-20 years you would also pay to have it hauled away and have always had the same accommodations

I'm sorry but, is there a point to the comparisons?

 

[DannyTS]

Have you checked the resorts you own before Covid? The market may have been flooded with listings before the pandemic started. I haves stopped looking at deals frequently, we own plenty of weeks, but I did not notice a decrease in value for Sheraton Vistana Vilages Bella (mandatory) and for Westin Lagunamar. To the contrary, the number of Redweek listings for Lagunamar is half or less of what it was a year ago. Lagunamar had a listing way under the market price for a 2 BR platinum EY. It was sold immediately after it was posted. SVV Bella is also holding is value pretty well from 3 years ago when I bought it. Vistana has a good buyback program so that may explain why the number is listings is low for many resorts. However, Lagunamar is not accepted at this moment so that cannot be the reason for that resort.