The average of closed and funded timeshare resale transactions at Timeshare-Resale-Broker.com for calendar year 2010 was $6,865.92 which is a dramatic drop from the highs of 2007-2009. The decrease in price year over year for timeshare resales was 25% from 2009.
Wayne Stroman, the broker for Timeshare-Resale-Broker.com a division of Stroman Realty, Inc. cites two main reasons for the drop in the average prices.
Number one is the present global financial crisis that has caused residential home and condominium resale prices to fall in similar percentage drops in many vacation areas. It could take several years for those markets to fully recover. Also commercial financing woes will slow down new timeshare resort construction till a few more years after the housing market recovers. This will cause the timeshare development industry some trouble getting back to the high levels of building and sales it has seen in the last decade.
The second reason is the Relief companies’ onerous downward pressure on timeshare resale prices. They do this by massive direct mailings followed by sales presentations touting impending large mandatory resort assessments and increasing timeshare maintenance fees. This fear tactic seems to work well to break down the owners desire to keep the timeshare property and motivates them to pay as little as $1000 and up to $4000 or more to be rid of it. Also as a condition of the Relief proposition, the owner must sign over the deed without getting any equity in return. This is not a sale. It is a transfer of ownership and the timeshare must be paid off before the Relief company will be interested in taking the week and the transfer fee.
Then the Relief companies flood the market with the give away timeshare weeks they take from the owners. Last year the low estimate is that they added over 25,000 weeks to the resale market. This further distresses timeshare resale pricing and you can see it in our lower sales prices. The Relief companies are taking massive equity out of the hands of the owners.
Also maintenance fees will increase when fewer owners at any resort pay their share of the costs. This perpetuates the increase in fees and encourages more owners to pay to give away their timeshare.
“Based on the facts, timeshare owners that sell through a licensed broker that is a REALTOR® gain almost $10,000 more than a seller who disposes their timeshare through a Relief company” said Stroman. “Using simple math the Relief companies probably took about ¼ of a billion dollars last year in fees and potential equity from timeshare resellers.”
Stroman reported the average price of a timeshare resale in Florida was $5,917.00, California was $7,811.17, Hawaii was $9,057.26 and for the Caribbean islands was $12,780.56. The worldwide average for a 1 bedroom timeshare resale was $4,141.36 and for a 2 bedroom timeshare resale or larger was $7,756.08.
“Island and waterfront timeshares are still holding great values for owners” he believes.
Timeshare-Resale-Broker.com is one of the world’s largest Timeshare Brokers. We have been the leader in the Timeshare Resale Industry for over 25 years. All of our Timeshare Agents and Brokers are licensed Timeshare Resale Specialists that are members of the National Association of REALTORS®.
Stroman Realty has sold timeshare properties located in 25 countries with buyers and sellers in 94 countries in over 1331 different timeshare resorts. Since 1995 we market on the Internet to those interested in timeshare vacations as a form of second home ownership. The internet has significantly enhanced timeshare marketing efforts nationally and worldwide.
Stroman Realty, Inc. is a full service real estate brokerage company located in a 30,000 sq. ft. office complex on Lake Conroe, just north of Houston, Texas. We have been servicing buyers and sellers since 1979.
You can find links to “Timeshare Resale Vacation Buying Trends: A 2003-2007 Study” at http://www.rpmls.com/timeshare-resale-study.aspx