How to Price a Timeshare Resale
When selling your timeshare, listing it at a competitive price could make all the difference. If you request an outrageous asking price, you may not get any offers. However, if you request too little… you could miss out on extra revenue. So, how do you find the sweet spot?
Learning how to price your timeshare effectively may help you achieve a successful sale (and a faster one if that is your goal). While your ownership may come with excellent features, there are most likely comparable properties already on the resale market. Offering a lower sale price may tempt a buyer to choose your property over others that are similar to yours.
Is my timeshare worth more now?
When you first purchased your timeshare, did the salesperson mention that it was an investment? Chances are they either described it as an “investment” that you could resell down the road or something to pass down to your children. Sadly, the truth is that the true value in a timeshare is in using it. Once you’re no longer using it, it’s time to sell or rent it out.
This also means that it is unlikely that you will make a profit by reselling your timeshare. Unlike traditional real estate, timeshares do not increase in value. It’s actually the opposite. Overtime, timeshares depreciate in value, similar to a car. For a seller, this can come as shock. However, the sooner you realize the true value of your ownership, the more marketable it will become.
Can I get back what I paid for it?
First of all, if you purchased your ownership from the resort, you probably overpaid. Typically, timeshare developers mark up their prices by up to 50%, sometimes even more! They’ll use this extra money to cover the salesperson commission, contests, and “free” presentations. Don’t let this discourage you, but if you bought from the developer you likely cannot resell your timeshare for the original purchase price.
Once you purchase a timeshare from the developer, the value immediately drops. Whether you’ve paid $10k, $20k, or $100k – it’s rare that you can sell it for that price. People will often find that the same timeshare that they have just purchased can be found on the resale market for up to 70% off. While this can be a hard pill to swallow, it is the reality.
This does not mean that you cannot sell your timeshare. Thousands of timeshares are bought and sold on the secondary market every day. This just means that you need to be realistic about your asking price.
The Bottom Line
At the end of the day, pricing your timeshare resale depends on your personal needs. What do you feel comfortable walking away with? If you owe a mortgage, you may want to include this amount in the asking price. However, if your timeshare is paid off, you may only want to request a minimal amount. It’s completely up to you. If you’d like to make a bit more from your resale, you can also try renting your timeshare while you wait for a buyer. Learn more about selling your timeshare.