Why are timeshare prices so low on the resale market?
Although some timeshare salesmen give the sales pitch that deeded timeshares will appreciate in value, unfortunately, they are NOT like houses and very rarely do. In fact, it is more likely to lose anywhere from 40%-80% of its value the moment you walk out the door. It is common that nearly half the cost of buying a timeshare from the Developer goes to Marketing & Sales. Remember the perks they threw in for buying/attending the presentation? Well, unfortunately, we paid for it (and the guy’s who didn’t buy) we just didn’t know how much we paid for it! So you can see buying a timeshare from a developer is more like buying a brand new car from a dealer than like buying a house. As with any product, the value of a timeshare resale is going to be based on supply and demand. When you have large resorts with several thousand owners there will generally be a fair amount of supply on the resale market at any given time. When you buy a timeshare on the resale market you pay fair market value wh