How much is my timeshare or vacation club membership worth?

Up until now it was almost impossible to determine the resale value of a timeshare or vacation club membership. Resales were conducted between private parties and the result of the sale was kept private.

With the majority of resales now occurring on websites like eBay and Craigslist, for the first time we can determine and analyze the final resale value.

By analyzing past eBay and Craigslist sales of timeshares in the same resort, same week, same trading power, similar exchange network, we can accurately predict the value of your timeshare. We can also determine when is the best time to sell your timeshare to get the most amount of money.

Most people wishing to sell their timeshare know little about the resale market. They are easy targets for unscrupulous sales agents. Timeshare sales agents set up simple websites on the Internet and wait for un-savvy sellers to contact them. Sellers are told that their timeshares are worth more than the market value. Sellers are then easily convinced to pay a fee and agents will guarantee their timeshare will sell. Unfortunately we have never heard of a successful sale upon paying these fees.

How much is my timeshare worth (part 2)?

A timeshare is simply the short term use of a property/resort every year for a specified number of years in the timeshare agreement. To determine the maximum of what a typical timeshare is worth, we must analyze the demand for the property and the price people are willing to pay to enjoy usage of this property.

The best way to determine the demand for the property, is to see what that property can be rented for. If the property itself cannot be rented then we must look for comparable properties that can be rented during the same specified time.

Let us use a real world example to help determine the worth of one's timeshare:

John purchased a timeshare from the Horizons by Marriott Vacation Club at Orlando. The timeshare is deeded and can be used every odd year. The week that the unit is available to John and his family is Week 48. John and his family can use the unit Sunday November 30 2008 - Saturday December 6 2008. John pays an annual maintenance fee of 392.27/year. Since John is only allowed to use the unit every other year -- the total cost for John to use the unit during this week is 392.27 * 2 = $784.54

The unit John is entitled to enjoy for seven days is a 2 Bedroom / 2 Bath suite with the following amenities:

• Master Bedroom: King
• Second Bedroom: Two Queen
• Living Room Sofa Bed: Queen
• Screened Balcony
• Fully Equipped Kitchen
• Washer/Dryer in Unit

Resort Web Site: www.marriott-timeshare.com

The question is how much can John sell this timeshare for? Let's begin by researching how much this unit would rent for from a site like travelocity for the same time period.

After completing a search of travelociy we see that a timeshare like this can be rented for a total of: $3006.72. This means that the timeshare cannot be sold for any more than this. Otherwise a potential buyer would be paying more to use the unit through the timeshare then if rented the from travelocity. Also a buyer still is responsible for the maintenance fees. This means the timeshare is worth no more than $3006.72 - $784.54 = $2222.18 A new owner would pay no more than $2222.18 to buy this timeshare for usage this year. It is hard to put a dollar value on what a new owner would pay for the next years usage (which occurs 2 years from now).

For each additonal year the new owner wishes to use the timeshare the value of John's timeshare increases.
Usage in 2010 = (Cost to Rent - Maintenance Fees) = $3006.72 - $784.54 = $2222.18
Usage in 2012 = (Cost to Rent - Maintenance Fees) = $3006.72 - $784.54 = $2222.18
Usage in 2014 = (Cost to Rent - Maintenance Fees) = $3006.72 - $784.54 = $2222.18
Usage in 2016 = (Cost to Rent - Maintenance Fees) = $3006.72 - $784.54 = $2222.18

Hence, if the new owner decides to visit this year, and would like to visit each additional year for the next 10 years the total value of the timeshare would be:

$2222.18 * 5 = $11,110.90

John can expect to sell his timeshare for $11,110.90 if the new owner valued using the timeshare for a period of 10 years.

Unfortunately most people do not wish to vacation at the same resort for a period of 10 years. They prefer the flexibility to travel when and where they wish. They see maintenance fees as being excessive and inflexible. They typically value the timeshare at only one 1-2 years cost of renting!

Searching past eBay sales we can see that John's timeshare sold for the final price of $2200.

Why doesn't my timeshare or vacation club membership sell for what I bought it for? I was told I could sell it for a profit.

As, the above example shows, you can only sell a timeshare for the equivalent cost of renting. Owning a timeshare forces people to vacation in the same location every year. The problem is when most people want to go on vacation, they do not want to vacation in the same resort year after year. They like to experience different places. They want to try something new.

A timeshare owner vacations at the same resort (or group of resorts) every year. This limits its resale value. Further limiting the value is that most vacationers do not want to make a long-term purchase when they go on vacation. They they would prefer to book their vacation no further than a year in advance. As a timeshare owner they would be effectively booking their vacation for many years in advance. For some timeshare owners, it is difficult to make a reservation at the resort at times that work best for them. This also makes timeshare ownership less desirable than getting a guaranteed rental.

LET US HELP YOU SELL YOUR TIMESHARE. CONTACT US AND WE WILL HELP.