Global Nature Of Timeshare Resales
The international broker specializing in timeshare sales offers timeshare consumers resale assistance that corresponds to the global nature of the business, regardless of the location of the resort, the buyer or the seller. We, illustrate the global nature of timeshare resales, below.
To further illustrate the widespread geographical reach of timeshares, multi-state and international exchange programs are considered to be the number one motivating factor in new sales purchases. We will show you a typical resale scenario: A resident of Germany buys a Florida timeshare from a New York owner who owns a separate timeshare in Hawaii that he bought from a California resident. This scenario does not mention that location of the fifteen other possible buyers who are spread around the globe.
The above example shows the interstate nature of the industry and the need for brokers operating on a national and international plane.
High Cost Of Marketing For Resale
Very costly marketing is a problem that plagues the timeshare marketplace. It is estimated that the marketing costs alone are over 40% of the new sales price paid by the consumer. The general public and individual owners of timeshares frown upon these very high advertising costs. This is one of the reasons developers elect not to become involved with resales. Timeshare buyers are not aware that the marketing costs are so high, until they try to resell their units. The advertising costs incurred by the developer frequently exceed the resale price of the timeshare. In the United States, Florida is a prime timeshare location, to get an idea of prices in an active timeshare market do a web search for “timeshare resales Florida“.
The resale dilemma is further magnified by a sales technique commonly used by resort developers at the new sales table. This example will illustrate this sales method, known as “the drop.” The salesman states the sales price as $16,000. To increase the urgency for the consumer to buy, a manager is brought in to offer it for $10,000, today only. This sales technique is an attempt to motivate the customer to buy, since it implies that the timeshare is worth more than the asking price. This gives the perception of an inflated value of the property, this is a large problem in the timeshare industry.
The truth is that the owner has an incorrect concept regard the market value of his timeshare, and this perception, along with very high marketing costs produces a poor result for the person who needs to resell their timeshare. The consequences of this reality are first, the developer does not want to confront the owner with a resale program because the owner has become aware of the original distortion, and second, without developer support or broker pooling of owners’ funds through registration fees, the traditional commission only program does not work for the independent, non-subsidized secondary market.
To get help with reselling your timeshare: timeshare resales To learn more about timeshare sales come see us at: timeshare resales Florida
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Category Real Estate
Posted Tuesday, January 18th, 2011
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