The most obvious reason timeshare owners struggle to sell their timeshare is that the resale market is flooded with “DEVALUED” INVENTORY—because the resale market consists almost entirely of sellers, with no buyers.
It is estimated that, at any given time, there are roughly 1 million owners looking to end their timeshare ownership. A quick and simple online search reveals thousands of timeshares listed for less than $1 or even for free.
The first thing timeshare owners must understand is that timeshares are not a financial investment. Timeshare buyers are often misled at the time of purchase to believe that their timeshare is an investment that may appreciate in value or has financial value for sale on a secondary or “resale” timeshare market. This simply is not true.
Below is an example of language taken directly from one U.S. timeshare resort’s public offering statement. Many resorts use similar language in their owner manuals, master agreements, or public offering statements.
“Units (other than Commercial Units) and Unit Weeks are offered for sale for personal use and enjoyment only and should not be purchased by any prospective purchaser for resale or as an investment opportunity or with any expectation of achieving rental income, capital appreciation, or any other financial return or valuable benefit, including but not limited to any tax benefit. Owners attempting to resell or rent their unit or unit week would have to compete, at a substantial disadvantage, with the developer in the sale or rental of its unsold units or unit weeks. Generally, there is no established market for the resale of Units and Unit Weeks or for the rental of Units and Unit Weeks in the Condominium.”
So not only should you not purchase this timeshare “with any expectation of achieving rental income, capital appreciation, or any other financial return or valuable benefit…” Should you ever try to resell or rent your timeshare, you will be competing with the developer at a substantial disadvantage.
This leads us to the third obstacle preventing you from selling your timeshare. Some resort developers view resales as a THREAT TO THEIR REVENUE STREAM and have taken direct and intentional action to SUPPRESS the resale market—including restricting rights and benefits for owners who purchase their timeshares on the resale market.
This is a tactic used by some resorts to help ensure any potential timeshare purchaser views a timeshare interest sold by the resort as more valuable than one sold by a timeshare owner. Here is what one major U.S. resort developer had to say, IN ITS OWN WORDS, taken directly from its SEC filings:
“Owners generally can offer their vacation ownership interests for resale on the secondary market, which can create pricing pressure on the sale of developer inventory. However, owners who purchase vacation ownership interests on the secondary market typically do not receive all of the benefits that owners who purchase products directly from us receive.”
Yes, the resort is telling us that any buyer of a timeshare interest in the secondary market is PENALIZED in terms of benefits. Essentially, the resort is stating that it generously allows timeshare owners to advertise their timeshares for sale, but it will not provide owners who bought their timeshares on the resale market with the same benefits as owners who purchased their timeshares directly from the resorts.
“While a purchaser on the secondary market will receive all of the entitlements that are tied to the underlying vacation ownership interest, the purchaser is not entitled to receive certain incidental benefits. For example, owners who purchase our products on the secondary market have restricted access to our internal exchange programs and are not entitled to trade their usage rights… Therefore, those owners are only entitled to use the inventory that underlies the vacation ownership interests they purchased.”
So, when you want to sell your timeshare interest, you are competing with the resorts for buyers, and THEY RIG THE GAME IN THEIR FAVOR. The resort explains that owners who buy directly from them have the right to reserve a unit or exchange it, whereas resale purchasers have limited exchange rights—locking them into the same timeshare year after year. As a result, the resorts are manipulating the secondary market and intentionally devaluing your timeshare.
“Additionally, most of our vacation ownership interests provide us with a right of first refusal on secondary market sales. We monitor sales that occur in the secondary market and exercise our right of first refusal when it is advantageous for us to do so, whether due to pricing, desire for the particular inventory, or other factors. All owners, whether they purchase directly from us or on the secondary market, are responsible for the annual maintenance fees, property taxes and any assessments that are levied by the relevant property owners’ association, as well as any exchange service membership dues or service fees.”
IN SUMMARY, anyone who purchases a timeshare on the resale market, with restricted benefits and privileges, has to pay the same ongoing fees to own that timeshare as a person who buys directly from the resort. Furthermore, this developer reserves the right to block any purchases in the resale market when it suits its needs.
At Newton Group, we offer timeshare owners WHAT THE RESORTS DON’T WANT YOU TO HAVE: viable, safe and legal options for ending your timeshare ownership.
We ensure EVERY AVAILABLE OPTION IS PRESENTED TO YOU through our unique, Guaranteed 5-Step Process.
Our exclusive approach combines SPECIALIZED EXIT SERVICES with the protection of PERSONAL LEGAL REPRESENTATION, under one service agreement and with an affordable flat fee.
NEWTON GROUP CLIENTS have their own separate and independent legal engagement with our partner law firm, whereby the attorneys work directly for the timeshare owners and have a fiduciary and ethical duty to act in owners’ best interests.
Never before has JUSTICE BEEN SO ACCESSIBLE AND AFFORDABLE for timeshare owners!
If you want out of your timeshare, get the nation’s MOST EXPERIENCED TIMESHARE EXIT EXPERTS FIGHTING FOR YOU AND YOUR RIGHTS. We have been successfully helping timeshare owners since 2005.
By Gordon Newton
President Newton Group