Looking to Buy? Learn the Disadvantages of Timeshare Resale

Timeshare properties have made it possible for many individuals to enjoy owning a piece of vacation property they wouldn't otherwise afford to buy through traditional means. What makes timeshare an attractive option is that the ownership or the rights to use the property is made available but the more taxing parts involving ownership responsibilities (maintenance, repair, utility charges, mortgage, etc.) are taken away. With timeshare resales being offered at nearly half their original price, it's not really surprising that many people are encouraged to buy. However, they may not always be a good option. Here are some of the disadvantages of timeshare resale:

You sell it at a loss.

A timeshare resale does not exactly equate to a good sale. If you buy one and then decide to resell it later, you can't expect to profit from it. In fact, you even have to expect to sell at a loss.

You can't price the timeshare to your advantage.

If you're a timeshare reseller, you definitely cannot ask for the same price as a developer.

For one, you truly have no reason at all. Developers actually spend for the cost of presentations, advertising and promotions. Those free gifts they give away at the end of those long presentations? They aren't actually free - developers have to spend for them. If you add up all the expenses they incur when selling timeshares, that's around 40% to 50% of the price they charge for the timeshare.

Since you'll be using the resale market, you will have to keep your prices competitive to attract potential buyers. You also can't try to outdo the system by raising your prices. Chances are, there are other sellers in your category and location who may be offering more competitive prices, which means you have to keep your prices low.

You might have to compete with major players.

Resales usually do not have the same reputations as those sold through developers.

Some of the biggest names in real estate are involved in timesharing. Think Disney, Hilton and Marriott and you have a pretty good idea of what you can expect. They have the reputation and you don't - at least, not yet.

If you're a seller, this means that you will have to market your timeshare more aggressively in order to get noticed.

So you bought it at a good price. You still have to pay for its upkeep.

You may have purchased only the rights to use the timeshare property but that doesn't exempt you from being involved in the dirty work. You still have to pay for the maintenance fees of the unit for as long as your contract holds. That will set you back by about $400 to $500 a year - a figure that will go up, depending on how the current markets behave. Fees will also go up should the area become popular or exclusive.

You're open to scams.

Another disadvantage of timeshare resale is that some of it may be offered through a scam. It's the hard face of reality but scams in the timeshare industry do exist and you might not be immune to them. Beware of unnecessary pressure being imposed by the salesperson or any policies that you think may be suspect. Check the stipulations on your contract and ask for clarifications on any points that confuses you. Protect yourself from anything that might turn your timeshare resale dreams into a nightmare.