by Tatya H.P.
It can be confusing for a starter to decide from where to buy his first timeshare from resale market or directly from timeshare resort or developer. It can be a hard decision to make with both having its own advantages and disadvantages. Buying timeshares in the resale market like auction websites or advertising through classifieds is a recent concept compared to buying from developers which has been there since its inception. Internet has brought everything to the doorsteps of the people and thus benefiting the timeshare market also. Websites such as eBay.com, bidshare.com and redweek.com provide prospective buyers with more information on the property and also wide variety of buying options.
The scenario was totally different a decade ago when the buyers used to buy timeshares through timeshare presentations hosted by timeshare developers. The decisions taken to buy timeshares were mostly based on one’s impulse rather than research and analysis. But with the advent of internet auction sites a user has more powerful tools to research the prices in advance even if he is going to a presentation. The buyer can make a more informed choice today than earlier. Buyers can also avoid the trauma of sitting through a timeshare presentation by buying through resale market. The presentations sometimes take ninety minutes and can go even longer. At the end of the presentation the buyers who were brought in on the pretext of a free gift are subjected to high pressure selling techniques, and this yield to sign a paper and buy a timeshare.
Now talking about the cost comparison, a developer’s timeshare offer includes the cost of advertisement, presentation, free gifts etc. which is whopping 40% of the cost of the timeshare and sometimes this exceeds the cost of the timeshare resale. On the other hand if one buys a timeshare through a resale market one can buy the timeshare 30% to 50% cheaper. Also buying through a resale market offers you more choice and freedom to select your desired unit. You know that you are getting the best price. It is definitely worth saving thousands of dollars by buying a resale.
But there are good reasons to buy from a developer. There are many reputed companies that have ventured into timeshare business like Marriot, Disney, and Hilton etc. When you are buying through a resale market there is a margin of doubt whether your investment is secured or not and the trust factor is low. Where as the timeshare developers spend fortunes in the development of timeshares and have great reputation and thus can be easily trusted. They give you the best and the latest amenities which you can never get from a resale unless it’s a relatively new unit. Another high point of buying through a developer is that they offer many incentives and benefits to their customers in the form of bonus weeks, discounts on attraction tickets, car rentals and much more. On the other hand these benefits may not be available to you if you bought your timeshare through resale market as many developers does not allow timeshare resale units with same amenities compared to those who bought directly from them. Also the developers usually offer many financing options that you may not get if you buy from a resale market.
Showing posts with label timeshare resale. Show all posts
Showing posts with label timeshare resale. Show all posts
Sunday, January 10, 2010
Buying Guide for Timeshare Resale
by Tatya H.P.
Are you on a hunt for timeshares? Are you tired of listening to the lengthy presentations of timeshare companies? Here is the solution, go buy a timeshare resale. Almost non-existent a decade ago timeshare resale industry is waking up to the call and catching up slowly and steadily. Timeshare resale takes place through classifieds, auction sites and also many reputed firms have joined this emerging market. The reason why anybody should look at buying timeshare resale is that they cost 30%-50% less than the new timeshare. The reason why new timeshares are expensive is the timeshare companies spend a lot on advertising. Sometimes the cost of advertising is higher than the value of resale. That is why timeshare resale is much cheaper option than new timeshare. But one should remember certain things while buying timeshare resale.
Do not believe on word of mouth if the seller tells you that the timeshare is in a great location. It is advisable to see the timeshare yourself or at least tell your friend or family member if they live close to the location to go and see it. Timeshare is indeed a great investment in your life provided you know you are buying a right one. And also consider things like whether the timeshare is in a high demand area and in close proximity to grocery stores, malls, restaurants and other amenities. And also find out whether there are any major attractions nearby. Also buy your timeshare in a prime season which gives you more options for exchange later on.
Also do not ignore the floor plan. Some units are converted from motels into timeshare units, while some may be outstanding but some may turn out to be very bad. Look for well designed and well planned unit. And also see if the units are well maintained. If it’s clean and free from dust, structural damages and squeaking doors it speaks a lot about the management. Well maintained and well kept units represent a good management. This also adds to the value of the unit.
The low prices of timeshare resale overshadow the underlying cost sometimes such as maintenance fees, property taxes and if there is any special assessment this year. Clearly ask the seller if all these have been paid up to date otherwise the price of owning a timeshare resale increases and makes no sense in buying. Also buy a timeshare resale unit in a timeshare resort which has low maintenance fee, as this is an annual fee it keeps on adding if you pay any extra money.
If you are buying through a broker, do not fall into the trap of buying through an unlicensed broker. The timeshare industry has witnessed many scams and frauds related to timeshare resale. So always go to a licensed broker because they have much at stake compared to a non-licensed broker. Also put the money in an escrow account until the time you get the timeshare unit.
The foremost important criterion is the price, so do your homework and research the prices of timeshare units in the area you are interested in buying. A timeshare is an investment for a better life. Keep in mind that the prices of timeshare resale units are as low as 30% to almost half the price of the new units. You can do the research on internet auction sites like eBay and bidshare.com. If you are buying through a broker you can ask the broker to show a comparative analysis of prices.
The bigger the unit, the better the value and chances of exchanging. Most people are happy if they buy big units as it also accommodates big families and friends and also big gatherings. Also do not forget to ask the seller the reason why they are selling their units. It can be due to some problems related to management or inconvenience. This information will be crucial to you as you might be able to gauge whether you can handle those issues later on or not.
Are you on a hunt for timeshares? Are you tired of listening to the lengthy presentations of timeshare companies? Here is the solution, go buy a timeshare resale. Almost non-existent a decade ago timeshare resale industry is waking up to the call and catching up slowly and steadily. Timeshare resale takes place through classifieds, auction sites and also many reputed firms have joined this emerging market. The reason why anybody should look at buying timeshare resale is that they cost 30%-50% less than the new timeshare. The reason why new timeshares are expensive is the timeshare companies spend a lot on advertising. Sometimes the cost of advertising is higher than the value of resale. That is why timeshare resale is much cheaper option than new timeshare. But one should remember certain things while buying timeshare resale.
Do not believe on word of mouth if the seller tells you that the timeshare is in a great location. It is advisable to see the timeshare yourself or at least tell your friend or family member if they live close to the location to go and see it. Timeshare is indeed a great investment in your life provided you know you are buying a right one. And also consider things like whether the timeshare is in a high demand area and in close proximity to grocery stores, malls, restaurants and other amenities. And also find out whether there are any major attractions nearby. Also buy your timeshare in a prime season which gives you more options for exchange later on.
Also do not ignore the floor plan. Some units are converted from motels into timeshare units, while some may be outstanding but some may turn out to be very bad. Look for well designed and well planned unit. And also see if the units are well maintained. If it’s clean and free from dust, structural damages and squeaking doors it speaks a lot about the management. Well maintained and well kept units represent a good management. This also adds to the value of the unit.
The low prices of timeshare resale overshadow the underlying cost sometimes such as maintenance fees, property taxes and if there is any special assessment this year. Clearly ask the seller if all these have been paid up to date otherwise the price of owning a timeshare resale increases and makes no sense in buying. Also buy a timeshare resale unit in a timeshare resort which has low maintenance fee, as this is an annual fee it keeps on adding if you pay any extra money.
If you are buying through a broker, do not fall into the trap of buying through an unlicensed broker. The timeshare industry has witnessed many scams and frauds related to timeshare resale. So always go to a licensed broker because they have much at stake compared to a non-licensed broker. Also put the money in an escrow account until the time you get the timeshare unit.
The foremost important criterion is the price, so do your homework and research the prices of timeshare units in the area you are interested in buying. A timeshare is an investment for a better life. Keep in mind that the prices of timeshare resale units are as low as 30% to almost half the price of the new units. You can do the research on internet auction sites like eBay and bidshare.com. If you are buying through a broker you can ask the broker to show a comparative analysis of prices.
The bigger the unit, the better the value and chances of exchanging. Most people are happy if they buy big units as it also accommodates big families and friends and also big gatherings. Also do not forget to ask the seller the reason why they are selling their units. It can be due to some problems related to management or inconvenience. This information will be crucial to you as you might be able to gauge whether you can handle those issues later on or not.
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