Aspects of the Timeshare Real Estate Market

There are significant differences between timeshare and traditional real estate including the differing amenities associated with a timeshare versus a home. There are many variables to a timeshare, e.g., season of use, exchangeability, whether it is a "lock-off".

Like traditional real estate, the timeshare vacations industry also has a primary Retail market and a secondary Resale market.

Unlike traditional real estate, however, competitive timeshare resale prices are usually lower than retail. When prices improve it will help the viability of the new sale developer future.

Marketing on the Internet has recently exceeded signage as the number one way buyers would find real estate to purchase. 

As consumer internet usage has increased, the Timeshare Resale Industry has benefited significantly from the use of the Internet to advertise units for sale. This is because timeshare owners/sellers have never been able to use signage to help with their marketing due to resort restrictions. Since about 1995 the Internet has created an interactive growing conduit for timeshare property information utilized by buyers, wholesalers, timeshare brokers and timeshare sellers. The Internet is the single largest factor that has improved the market for timeshare resales. In contrast, print media advertising has fallen off in its cost effectiveness in drawing willing buyers. Several of the major real estate franchise firms have cut back their print media budgets.

Web 2.0 is the new lift for timeshare resale marketing. New websites will emerge that will assist buying consumers that are searching the Internet for interesting offers at attractive locations and prices.

See for example, our timeshare sale catalog, which contains over 5512 timeshare resorts with timeshares for sale and rent all over the world.

Per industry surveys, 58% of all U.S. resorts offer no resale programs for their timeshare owners. According to the 1997 ARDA U.S. Timeshare Industry Overview and Economic Impact Analysis, it was also found that:

  • 46% of all timeshare owners have some degree of interest in selling timeshares.
  • 22.2% are actively pursuing selling.

According to the 2003 edition of "Resort Timesharing in the United States ," prepared by Ragatz Associates, it was found that a little better than one in four timeshare purchases was a resale.

  • 27% of total timeshare acquisitions are resales-as follows:
  • 15% consumer resales.
  • 8% POA resales.
  • 4% gift, inherited or other.

This type of information is limited and is all that is available offering estimates of numbers of resales by individual owners. We believe that the survey data above is unreliable because of the limited number of responses to questions about reselling individually-owned timeshare weeks.

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