What is my Timeshare Worth?
Questions surrounding timeshare worth have been asked since the advent of the timeshare industry, primarily due to the nature of the product. When you are dealing with a vacation use product such as timeshare, discrepancies are bound to surface. So when you ask yourself “what is my timeshare worth?” there are several variables to consider.
The bottom line is – you want as much money as possible for the sale of your timeshare, right? But like the sale of other use products such as cars and boats, the threshold is what a buyer is willing to pay for a product, not necessarily what the seller deems to be an accurate price. That said, timeshares have value, so you can make money on your timeshare. The key is to do your market research.
Where to Start
Several areas should be considered when determining a timeshare’s worth. However, one area to disregard is the original sale priced paid for the timeshare. Similar to the sale of a new car, timeshares lose worth “right off the lot” because of the sales commissions and marketing costs baked into the original sale price. Once those costs are stripped out of the sale price, you’ll have a more accurate idea of the starting point for the resale price of your timeshare. These costs average between 50-60% of the initial sale price.
Many timeshare owners incorrectly assume that timeshare is like traditional real estate and, therefore, should increase in value. However, in the vast majority of cases the opposite is true because it is more of a use product. Even so, there are items to consider that may seem related to real estate such as:
- Location, location, location – where the timeshare resort is located can make a big difference in determining timeshare worth. There is a reason that nearly 25% of all U.S.-based timeshare resorts are located in Florida. Because it is Florida!
- Size of the unit – a two-bedroom unit is the most popular size unit, with about 72 percent of timeshare units in the U.S. at two-bedrooms or larger. The average size of a timeshare unit is just over 1,000 square feet. If your timeshare is two-bedrooms or larger, you have an advantage.
- Position of your unit – as many owners have discovered, some the hard way, oceanview is not always oceanfront. And partial view can have several meanings. Be as honest as you can when determining the worth of your timeshare in relation to its position at the resort. If you have a pool view rather than an ocean view at a high-demand resort, it may reflect a lower resale price point but get more offers from buyers who consider it a bargain.
- Season – let’s face it, a bargain week in Ocean City in January just isn’t going to cut it. But Christmas weeks, Spring Break weeks and the like can be a big advantage and, therefore, get you a better price.
- Amenities – the more, the better. Smart resorts continually re-invest in their amenities to keep their resort relevant and attractive. Water parks, golf courses, ski lifts – everything helps.
- Exchange companies – check with your exchange provider to determine the exchange value of your timeshare. Higher exchange value should equal higher timeshare worth.
Determining the worth of a timeshare has become more complicated due to the popularity of points-based timeshare products, since a two-bedroom unit in one brand’s network may be worth more than for another brand, even in the same town. However, the more research you can conduct, the better chance you have to determine an accurate starting point.