How Much is a Timeshare?
When it comes to significant investments such as purchasing a house, car, or boat, consumers often engage in meticulous research, comparing prices and features, particularly for items priced over $20,000. However, the timeshare industry operates differently. Unlike other major purchases, timeshare developers traditionally do not disclose the prices of their units upfront. This lack of transparency raises a critical question: How can one determine the cost of a timeshare? The answer becomes apparent only during a guided tour. It is during these tours that sales representatives showcase the most attractive demo units and facilities. It’s at this stage, immersed in the allure of the amenities, that the asking prices of timeshares are finally revealed to potential buyers.
So What is the Price of a Timeshare?
Purchasing a timeshare is a unique experience, vastly different from the conventional process of buying a home. While buying a traditional property might involve a lengthy, deliberative process spanning weeks or months, the timeshare buying experience is designed to be swift and decisive. Typically, the entire sales process, from tour to purchase, is completed within a few hours. This rapid pace is often fueled by aggressive sales tactics. A striking 99% of timeshare purchases are made on the same day as the property tour. These snap decisions are frequently spurred by enticing “Today Only” price offers, which create a sense of urgency and can lead to a wide variation in prices for similar or even identical units.
The timeshare market offers a range of options, from modestly priced units to luxurious, high-end choices like penthouses, which can command prices in the six-figure range. Throughout the purchasing process, buyers often navigate through a hierarchy of sales personnel, from representatives to managers, and sometimes even vice presidents. This tiered approach is strategically designed to maximize revenue from each potential buyer. A key metric in this industry is the VPG (Volume per Guest), which reflects the average sales value per guest. According to data from the developer association representing the timeshare industry, the VPG typically stands at around $22,000. This figure highlights the average financial commitment buyers are making in this unique sector of the real estate market.
How Does One Determine the Average Price of a Timeshare?
Determining the average price of a timeshare can be a challenging task, primarily due to the limited availability of reliable consumer research and the often misleading nature of aftermarket listings on numerous resale websites. The secondary market for timeshares is particularly perplexing, with some properties being auctioned for as low as one dollar on platforms such as eBay. Additionally, resources like the Timeshare User’s Group provide a member listing service where used timeshares are available, and there’s also a well-known timeshare blog, RedWeek, that offers similar listings. This resale market can be particularly baffling for newcomers who find it difficult to differentiate between a brand-new timeshare unit and one that’s being resold. It’s important to note that regardless of whether a unit is new or resold, all units within a resort are uniformly maintained by the property owner’s association, ensuring consistent quality and standards across the board.
In the United States alone, there are over 1600 timeshare resorts, making the task of determining an average price even more daunting. To navigate this complex market, we highly recommend consulting with the Licensed Timeshare Resale Brokers Association. This organization consists of commission-based realtors who specialize in timeshare resales. They possess in-depth knowledge and experience in the industry, which can be invaluable in helping potential buyers understand the nuances of market sales prices versus listing prices. Their expertise can provide a clearer picture of the current market trends and help in making an informed decision.
For more comprehensive insights and guidance on timeshare ownership, we encourage you to explore other articles by Finn Law Group. These articles are designed to provide timeshare owners with valuable information and tips on various aspects of timeshare ownership.
Please note that the content of this article is intended solely for informational purposes and should not be construed as legal advice. For specific legal concerns or detailed guidance, consulting with a legal professional is always recommended.
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Led by timeshare attorneys J. Andrew Meyer and Michael D. Finn with over 75 years of combined legal experience. The Finn Law Group is a consumer protection firm that specializes in Timeshare Law. For a free consultation, please contact our office at [email protected] | Follow us on Twitter X for more on timeshare related matters.
