There are even some states that are preparing to make it a law that these companies cannot claim timeshares as being an investment opportunity and of course most of these states allow you to cancel timeshare contract terms after the initial buy (within a certain period of time) because of the unscrupulous behavior that happens at some sales presentations.
But the real question is: What is the value of a timeshare and how does it affect resale pricing?
The real hassle in timeshare values comes when you are trying to sell your unit and you want to get more out of it than what you put into it. You have to write up all the fees that are contained in your timeshare; everything from property taxes, if any, to cleaning fees and member fees for the resort. Then, you have the fun of figuring out how much it is going to cost you to get it listed and sold by a reputable company. Although you can sell it yourself by listing it on certain websites and in EBay timeshare auctions or on other auction sites, this can be even more of a hassle for the first time seller.
When you are figuring up the timeshare values of your unit, you should check the local vicinity to see what other options are available and what their values are. If you have a timeshare condo in Florida, for example, you can see what other comparable timeshares are selling for on a site like Ebay by checking completed auctions. You might even be able to find the exact same type of unit in the same building if someone else is selling theirs and base your value close to that one. Just be sure to base your value on a unit that actually SELLS. Many timeshare owners over-value their units and thus they sit on “To Sell” lists or sites forever, never moving or even garnering interest from savvy buyers.
Finding the resale value of your timeshare can be daunting, especially if you have never sold a timeshare before. You can get real estate companies that specialize in timeshare resales to do all the work for you, but you will have to pay them a small fortune when it goes to closing. True timeshare values have nothing to do with money, as stated above. It is in the dates that you can use the property and the amount of pleasure that you and your family get from the location, so keep these in mind as well. If you have a top timeshare companies like a Marriott or Disney timeshare, you will naturally be able to get a better price out of it as they are of a higher caliber than other units and they tend to hold their resale value because both companies actively exercise their rights to first refusal. (This means if the price gets too low, DVC, for example, will just buy the unit from the seller for the agreed upon price and then sell it to someone on their waiting list – for full retail price!)
Consider all of these things when you decide to buy or sell a timeshare. If there is anything that you are not sure about, you should consult with someone who is more knowledgeable than you. This ensures that you will do things the best way.