In a real estate downturn, there can be bargains for buyers looking for vacation timeshares, particularly in the secondary resale market. But, buyer beware of hidden costs and marketplace scams.
- Step 1: Consider hiring a real estate agent specializing in resales in a targeted vacation area. Search the Association of Real Estate License Law Official's database at arello.org to verify an agent's license.
- Step 2: Visit a targeted resort's recreation area. Ask timeshare owners about the management company, the frequency of maintenance fee raises, etc.
- Step 3: Select a timeshare resale. Consider hiring a lawyer or an experienced timeshare closing agent to examine a contract's fine print. Now it's time to relax in your new vacation destination.
- FACT: In 1963, Hapimag, a Swiss company, became one of the first to sell timeshares, marketing mostly to German tourists in Europe.
- Step 4: Make a list of resale prospects. Check that resorts on your list are members in good standing of ARDA (American Resort Development Association).
- TIP: Visit websites specializing in timeshare resale listings.
- TIP: Consider a timeshare as a vacation destination instead of an investment. Financial pundits consider it to be a poor investment.
- Step 5: Know the downside of buying from an owner. Resales may not include all the benefits available to original owners who bought from the developer.
- TIP: Perks only available to original owners can include the right to buy an extra vacation week at a discount.
- Step 6: Find timeshare resale listings at online auction websites. Subscribe to a timeshare list from longstanding organizations.
- Step 7: Know the advantages of buying a timeshare from an owner. Resales don't suffer the post-purchase depreciation of a timeshare bought from the developer.