How Much is a Timeshare?
Consumers usually like to perform a price and features comparison on almost any purchase above 20k and especially a major purchase like on a house, car, or boat. Strangely, however
timeshare developers do not advertise the price of their units in advance of tour and never have. So, how is one to know how much a timeshare cost? Only on tour, does a sales representative usually show the best demo units and amenities and only then is the asking price of a timeshare disclosed.
So What is the Price of a Timeshare?
A timeshare is distinct from a traditional home purchase. Instead of a prolonged buying process that might take weeks or months, a timeshare is typically sold within a matter of hours following a tour. This expedited sales process is often driven by high-pressure sales tactics, with approximately 99% of buyers making the purchase decision on the same day they tour the property. These decisions are frequently influenced by “Today Only” pricing offers, leading to a broad range of prices for similar or identical units.
While a select few might choose to invest in premium options, such as a penthouse that can cost in the six-figure range, the majority of buyers encounter a series of sales representatives, managers, and even vice presidents during the buying process. This layered sales approach is designed to maximize the revenue from each potential buyer. As a result, the VPG (Volume per Guest), which represents the average sales value per guest, typically hovers around $22,000. This figure is corroborated by data released by the developer association representing the timeshare industry.
How Does One Determine then What the Average Price of a Timeshare Should be?
Consumer research is limited at best and aftermarket listings on many resale sites are quite unreliable. Some timeshares are sold on the secondary market for as little as a dollar on auction websites like eBay. The Timeshare User’s Group also offers a member listing service with used timeshares as does a popular timeshare blog called RedWeek. The resale market from the primary market is confusing to new buyers because it is impossible to distinguish the difference between a new timeshare unit and a resale. Each and all units in a resort are maintained equally by the property owner’s association.
With more than 1600 timeshare resorts in the U.S., we recommend checking with the
Licensed Timeshare Resale Brokers Association. These commission only realtors work with resales and can help you get a better understanding of market sales as opposed to listing prices.
This article is for information purposes only and is not intended as legal advice.
