Why Should I Purchase a Timeshare Resale Instead of From a Developer?
When a consumer wishes to acquire something expensive, but spend less of their own money on the purchase, one avenue that many take is to look out for the item on the resale market.
From cars to furniture to clothes, many consumer goods have a thriving second (or third, or fourth) life, and retain significant “aftermarket” value. Is the same true for timeshares interests?
There are many different myths and misconceptions out there when it comes to the timeshare resale market. From the consumers’ perspective, it may be most important to get to the bottom of one particularly common question: “Should I purchase a timeshare resale, instead of from a developer?”
In some ways, this FAQ is a little more nuanced than many people expect! To help add some clarity, our own Michael Finn recently tackled this matter in a video interview. Here’s what he had to say:
Transcript of Why Should I Purchase a Timeshare Resale Instead of From a Developer?
“The short and easy answer is cost. If you buy on the secondary market from an owner or through maybe a timeshare broker, you’re going to pay approximately 5 to 10% of what you would pay if you were buying from a developer, so that’s a very, very significant savings, as you might imagine.
The other thing that you have to be concerned about, though, is that the developers do not want you purchasing on the secondary market. They’re going to do everything they can to discourage you, so if there’s a right of first refusal in your initial owner’s contract they’re going to exercise that right to prevent that owner from offering it to you.
Secondly, if you are offered an interest from an owner there’s a good possibility that part of what you are trying to buy will not be transferred to you. Some of the perks and amenities will not be transferred to you. The developers will not allow those things to be transferred. You have to be very, very cautious. I recommend using the services of an experienced timeshare broker. They know what resorts that you have to be concerned about. A relatively small additional cost, and in my opinion very, very worth it.”
Interested in learning more about this important topic? Here are a few resources exploring the ins and outs of the timeshare resale market, courtesy of writers for the Finn Law Group team:
- Does the Timeshare Resale Market Really Favor Buyers?
- Dispelling the Timeshare Value Myth
- The Unconscionable Suppression of the Timeshare Resale Market
Led by Attorney Michael D. Finn with 50 years of experience, the Finn Law Group is a consumer protection firm specializing in timeshare law. Our lawyers understand vacation ownership as well as the many pitfalls of the secondary market of timeshare resales. If you feel you have been victimized by a timeshare company, contact our offices for a free consultation. Know your rights as a consumer and don’t hesitate to drop us a line with any questions or concerns.