Resale value of timeshares

[toddvb20]

Can someone tell me why some timeshares hold their value (relatively speaking) or at least have some value while others are worthless as soon as you drive it off the lot?

Thanks!

 

[easyrider]

Amenities, location, weather and cost are factors that keep some resale values higher than others. For the most part, single location resorts are not as flexible to use as a multi-destination resort system giving single location resorts less resale value, imo.

None of the developer bought timeshares hold the new value and most have very little resale value.

Bill

 

[T_R_Oglodyte]

Amenities, location, weather and cost are factors that keep some resale values higher than others. For the most part, single location resorts are not as flexible to use as a multi-destination resort system giving single location resorts less resale value, imo.

None of the developer bought timeshares hold the new value and most have very little resale value.

Bill

It can be resort specific. Our Winners Circle unit has maintained it's value well, since we bought it for $900 in 1999. Factors that are significant.

• Fixed week 52 in coastal southern California.
• Owner-controlled Board of Directors. (No developer using a maintenance contract to line their pockets.)
• well maintained and fiscally responsible
• Usable with any exchange company.

Others that we own we paid significantly more for (even resale), but their values tanked in the 2008 recession, and have never recovered.

 

[Sandy VDH]

Timeshare System Points Comparison Chart

side by side comparison chart of all the major Timeshare Point systems

tug2.net

We did this comparison a few years back, and it may be a bit outdated, however the last line of the comparison is resale value. That still holds true, so take a look there.

 

[ScoopKona]

Can someone tell me why some timeshares hold their value (relatively speaking) or at least have some value while others are worthless as soon as you drive it off the lot?

Thanks!

Same as every other thing: supply and demand.

Take all the timeshares in and around Walt Disney World. Thousands and thousands of units. Massive supply. And while you'd think, massive demand, that demand is only really for the Disney Vacation Club properties. Most families visit Orlando for as long as the kids are "Disney aged" and then age out.

Now take Aspen. There are eight resorts -- including a Hyatt, St. Regis and a Ritz-Carlton. And the ones that don't have big hotel names are still considered high-end boutique. Skiers only "age out" due to injury or old age. And I've met 80-year old skiers in Aspen.

You could have just as easily asked, why are some wristwatches worthless, and some cost tens of thousands of dollars? They all tell time, after all. The difference is that there aren't any salesmen trying to sell Swatch watches, claiming they're just as valuable as a Patek Philippe. "They're made in the same town in Switzerland!"

 

[easyrider]

Timeshare System Points Comparison Chart

side by side comparison chart of all the major Timeshare Point systems

tug2.net

We did this comparison a few years back, and it may be a bit outdated, however the last line of the comparison is resale value. That still holds true, so take a look there.

This is the first time I viewed this. I feel kind of good for having WM and didn't realize the huge difference in mf of WM and some of he others. Hard to follow that Hilton mf's are less than WM's for a two bed unit.

Bill

 

[Sandy VDH]

This is the first time I viewed this. I feel kind of good for having WM and didn't realize the huge difference in mf of WM and some of he others. Hard to follow that Hilton mf's are less than WM's for a two bed unit.

Bill

Hilton is higher than WM. 1200 vs 1150. Now these are averages in term of required points and MFs for Hilton. WM is just an average points and overage MF although they do vary by the amont of points owned.

But while generally these is still a valid comparison, Prices have changes and so have points (like Hilton). It was a joint effort to get this comparison done, it would have to be again to update it.

 

[bnoble]

Can someone tell me why some timeshares hold their value (relatively speaking) or at least have some value while others are worthless as soon as you drive it off the lot?

Depends on what you mean by "hold their value." If you paid very little, there's not much to lose. That's one of the nice things about buying many timeshares resale.

Setting that aside, it is worth remembering that timeshare is a product that is sold, not bought. There are not many people who wake up in the morning and tell themselves that today is a good day to take on a lifetime obligation for the operation and upkeep of a luxury condo. Well, there are quite a few of us here on TUG, but we are...different.

So, the ones that seem to retain some non-trivial fraction of their developer sales price do so because they have some organic demand that is enough to make a dent in the supply in the form of people who want out. That organic demand comes from a lot of places. Unique locations, exceptional amenities, and well-kept units all play a part. Part of it is name recognition--everyone knows the name "Marriott" and has some idea of what it means. One way to judge is whether or not there is a healthy spread between the rental rates of a unit and its ongoing costs. The larger the spread, the easier it is to establish a resale market. There still has to be a built-in discount, because owning is less flexible than renting, but without the underlying rental spread there is no point to owning at all.

 

[tschwa2]

If you can regularly rent it out (not that you are but if you wanted to) for 150-300% of your annual fees it is likely to have some resale value. If on the other side if you don't own but you can regularly rent into a resort paying less than MF's up to about 125% of MF's, there really isn't any point in owning. Someone still might want to buy in (but not at developer prices) to receive preferential unit locations or other minor perks but the cost would still be near zero with the supply and demand issues.

 

[RX8]

The simple answer is the post above ^^^

 

[easyrider]

Hilton is higher than WM. 1200 vs 1150. Now these are averages in term of required points and MFs for Hilton. WM is just an average points and overage MF although they do vary by the amont of points owned.

But while generally these is still a valid comparison, Prices have changes and so have points (like Hilton). It was a joint effort to get this comparison done, it would have to be again to update it.

Many of the resorts are 10,000 credits for a 2 bed unit. The MF on 10,000 credits is $994. I see Moab is 14,000 credits for a 2 bed deluxe which would be about $1,370 MF.

I was thinking about acquiring a Hilton or two.

Bill

 

[montygz]

Can someone tell me why some timeshares hold their value (relatively speaking) or at least have some value while others are worthless as soon as you drive it off the lot?

Thanks!

Below are some reasons. However, the real value of owning a timeshare comes in using it. If you use it, you can get value out of it. If you don't, you will be unhappy. Also, most people who buy timeshares from developers have no idea what they are "driving off the lot" and when they find out, it isn't a pretty picture.

Cost to use. Some timeshares have relatively low fees and are good traders.
Location. Some timeshares are in places with high demand and low availability. They can be great renters as well as places to use.
Quality. Some timeshares and systems are nicer than others.
Emotional appeal: Disney uses location, quality and emotional appeal to keep its prices high. It is also a small system and they use right of first refusal to help keep prices from plummeting.

 

[daverunfast]

IMO, a deeded timeshare is worth about 2.5X the average rental less maintenance fees.

 

[TUGBrian]

if someone wants to provide updated figures for the comparison spreadsheet, im happy to update it!

 

[dioxide45]

Generally a timeshare will hold its value if the cost to rent with cash is significantly higher than the maintenance fees of the unit. For this reason, resorts that hold resale values also tend to weeks/resorts that can easily be rented for a steep profit above maintenance fees. Look at Orlando, DVC can be rented for about 2.5-3X maintenance fees but many of the offsite resorts will rent for less than maintenance fees. DVC holds resale value, those others do not. Scottsdale AZ and Hawaii properties rent well and return a good profit when rented, so they hold value as you can't usually rent them for less than the fees.

 

[Angelpire]

[Deleted - buying/selling/renting are not permitted in the discussion forums.]

 

[VegasBella]

Things that help a timeshare maintain a high value:

• Location, location, location
• In-house sales team that does RE-sales by commission
• HOA that uses funds wisely, keeps resort well-maintained
• Owners have certain benefits that renters/hotel patrons don't get

Ways to maximize resale value:

• Know what you own and be able to give accurate, useful descriptions of all the benefits of ownership
• Be patient, find the right buyer who is willing to pay
• Advertise/market your timeshare well

Ways to get a good deal when buying:

• Find the inefficiencies
• Be patient, find the motivated seller
• Know what you're buying (all the little details help)