Rather than purchase from directly from a major brand, a buyer can choose to purchase from a reseller. However, this may not be advisable, from a financial and usage perspective. You can certainly find an average or worse timeshare for much less on the resale market. But for the very best programs, one may be better off purchasing directly from the brand.
Firstly, there is some risk involved with purchasing resale, and to avoid this many choose a licensed real estate broker. These brokers charge considerable fees, however, and can be pretty scammy themselves (just try to sit through a phone call with a rep from, say, SellMyTimeshareNow, and you'll be getting the hard, emotional sell). In any case, major brands typically will invoke a Right of First Refusal on resales that prevent a buyer from acquiring them at overly discounted prices, say (as an estimate) 50% of the current market value. Add on the upward price increases caused by competition amongst resale shoppers, broker’s fees, and closing costs on the real estate transfer, and the new owner could end up paying up to 75% of the price offered by the brand itself.
Then we must account for the fact that the brand will offer first day incentives that will not be received when purchasing from a reseller. If the buyer is a savvy enough negotiator to gain a first day incentive greater than, say, 25-30% of the deed price, then he is coming out ahead vs. a resale purchase, from a financial perspective.
Finally, it’s not uncommon for major brands to restrict resale owners from the full benefits of their programs, reducing their value from both a usage and financial perspective.
When all these factors are accounted for, it may make sense to avoid the additional risk and work of purchasing from a reseller. It may not, particularly if the buyer is satisfied with a lower quality timeshare, so the resale market shouldn’t be ruled out entirely. As always, a shopper should do his due diligence.
Firstly, there is some risk involved with purchasing resale, and to avoid this many choose a licensed real estate broker. These brokers charge considerable fees, however, and can be pretty scammy themselves (just try to sit through a phone call with a rep from, say, SellMyTimeshareNow, and you'll be getting the hard, emotional sell). In any case, major brands typically will invoke a Right of First Refusal on resales that prevent a buyer from acquiring them at overly discounted prices, say (as an estimate) 50% of the current market value. Add on the upward price increases caused by competition amongst resale shoppers, broker’s fees, and closing costs on the real estate transfer, and the new owner could end up paying up to 75% of the price offered by the brand itself.
Then we must account for the fact that the brand will offer first day incentives that will not be received when purchasing from a reseller. If the buyer is a savvy enough negotiator to gain a first day incentive greater than, say, 25-30% of the deed price, then he is coming out ahead vs. a resale purchase, from a financial perspective.
Finally, it’s not uncommon for major brands to restrict resale owners from the full benefits of their programs, reducing their value from both a usage and financial perspective.
When all these factors are accounted for, it may make sense to avoid the additional risk and work of purchasing from a reseller. It may not, particularly if the buyer is satisfied with a lower quality timeshare, so the resale market shouldn’t be ruled out entirely. As always, a shopper should do his due diligence.