current market for timeshares

I am wondering what the current market is for timeshares. Given the current credit crisis in the financial markets and a poor real estate market, it seems that supply of timeshares would be increasing while demand is falling. However, it seems that information is hard to find on sales prices and inventory. So, how does one go about pricing a resell timeshare in this market? I read that sellers should expect to sell their timeshares at 1/4 to 1/3 of the developer price....

patrickb41 wrote:

I am wondering what the current market is for timeshares. Given the current credit crisis in the financial markets and a poor real estate market, it seems that supply of timeshares would be increasing while demand is falling. However, it seems that information is hard to find on sales prices and inventory. So, how does one go about pricing a resell timeshare in this market? I read that sellers should expect to sell their timeshares at 1/4 to 1/3 of the developer price....

In my own observations at several different timeshare facilities at which I own fixed weeks, there is very little (if any) correlation between the current credit, real estate and economy factors and the activity or pricing at established (i.e., sold out) timeshare facilities, where prices are not dropping.

A resale figure of "1/3 of the developer price" is almost always extremely optimistic, frankly. I think it's far more often in the 15-25% range. Developer prices generally mean absolutely nothing in the resale market -- buyers just don't care what the original purchaser may have overpaid to a developer.

You can get a pretty good feel for realistic, current, actual market value simply by finding comparable weeks being sold (on eBay, or elsewhere) and seeing the winning bid prices. Again, buyers couldn't care less what original developer prices are or were. All that matters in the resale market is what the week in question is actually worth to an interested buyer TODAY. The resale market finds its own value level pretty easily, it seems.

patrickb41 wrote:

I am wondering what the current market is for timeshares. Given the current credit crisis in the financial markets and a poor real estate market, it seems that supply of timeshares would be increasing while demand is falling. However, it seems that information is hard to find on sales prices and inventory. So, how does one go about pricing a resell timeshare in this market? I read that sellers should expect to sell their timeshares at 1/4 to 1/3 of the developer price....

In my opinion, with the economy on the brink of a recession, luxury items such as timeshares will be the first to go (unpaid balances and unpaid maintenance fees) and there will be millions of timeshare foreclosures. Timeshares are not a necessity, they are a luxury.

As far as trying to come up with a price to sell your timeshare, there's really not a single rule concerning such. It can be difficult, in many cases, to place a dollar amount on a resale timeshare.

A person that bought resale in the first place may want on the resale market what they paid initially, however a person that bought from the developer will NOT get what they paid initially. If someone wanted to pay developer prices, they would simply buy from the developer and not resale and get whatever perks a developer offers.

With the exception of a few high end timeshares (Marriott, Hyatt, 4 Seasons, Westin, Disney etc.) a resale will bring approximately 1/4 to 1/3 of what was paid the developer. That is if you can sell it at all. Some timeshares can't be sold for even $1, which is evidenced on Ebay. It all depends on the popularity of your resort and it's location and the time period owned (it's all about supply and demand).

One major thing to consider when buying a timeshare in the first place is that it's much easier to BUY a timeshare than to SELL a timeshare. Proof is in the millions that are for sale on the resale market.

Poor I would think. I have a Time Share in Orlando which I gave away primiarily to avoid the increasing maintance fees and the horrid exchanges with RCI. Over the years I am horrified to figure the amounts of monies wasted I could have gone to Europe first class for all the money I threw away. Any financial advisor would tell you Time Shares are no investment actually they are a loss. However, the exception might be if you use the same one each year perhaps then you break even.

barbara1106 wrote:

Any financial advisor would tell you Time Shares are no investment actually they are a loss.

Exactly, timeshares are an investment in future vacations, not financial investments.

Quote:

However, the exception might be if you use the same one each year perhaps then you break even.

Could be if you bought resale, but if you bought developer then I can't see any break even point with the very high cost you paid initially and ever increasing yearly maintenance fees.

patrickb41 wrote:

I am wondering what the current market is for timeshares. Given the current credit crisis in the financial markets and a poor real estate market, it seems that supply of timeshares would be increasing while demand is falling. However, it seems that information is hard to find on sales prices and inventory. So, how does one go about pricing a resell timeshare in this market? I read that sellers should expect to sell their timeshares at 1/4 to 1/3 of the developer price....

Hi. To get a good idea of the low end of the resale market, go to www.ebay.com and look at the timeshare sale auctions for various resorts. I believe there is a way to obtain sales data from ebay, but I do't know how to get that info. Contact ebay to see if the ebay sale info is available. Stan.

Copy and paste Ebay timeshare auctions URL below:

http://search.ebay.com/timeshares_W0QQflocZ1QQfnuZ1QQfsooZ1QQfsopZ3QQsaslcZ1

Then scroll down to 'search options' then scroll down to 'completed listings' then click 'show items' at the bottom. As you can see many have sold for 1 cent.

jayjay wrote:

Copy and paste Ebay timeshare auctions URL below:

http://search.ebay.com/timeshares_W0QQflocZ1QQfnuZ1QQfsooZ1QQfsopZ3QQsaslcZ1

Then scroll down to 'search options' then scroll down to 'completed listings' then click 'show items' at the bottom. As you can see many have sold for 1 cent.

stanleyf5 wrote:

Hi Jayjay, thanks a million for the sales search info. Stan.

You're quite welcome.