Is Buying a Timeshare Resale Worth It?
min Read
Imagine finding your dream vacation timeshare at half the original price through a resale listing. Or perhaps you’re an owner who plans to exit your timeshare commitment because you can no longer travel. Both scenarios represent common situations in the timeshare resale market, where sellers seek to exit ownership due to life-changing circumstances and buyers see resales as budget-friendly entry points into vacation ownership. While buying or selling on the resale market may seem appealing, both parties must navigate potential pitfalls and scams to avoid costly mistakes.
- Timeshare resales offer deep discounts compared to buying directly from a developer, making them appealing to budget-conscious buyers — but resale purchases often come with higher risks and limited benefits.
- The resale market is legal but risky. Scams targeting both buyers and sellers are common, especially those involving upfront fees or fake buyer offers. Always work directly with developers, legitimate resale companies, or licensed brokers.
- Developer perks may not transfer to resale buyers. These can include access to exchange networks, discounted last-minute bookings, and premium programs — factors that can significantly impact the value of ownership.
- Alternatives to third-party resale exist, such as developer deed-back programs, transferring to a family member, or seeking legal counsel if fraud was involved in your original purchase.
- Getting the most from your timeshare requires strategic use: joining exchange companies, banking points, renting when unused, and connecting with experienced owner communities to make informed decisions.
What Is Timeshare Reselling?
A timeshare resale involves buying and selling existing timeshare ownership between individuals, rather than purchasing directly from the resort developer. Think of it like the used car market for vacation properties. These resales typically sell for much less than the original purchase price, attracting cost-conscious buyers.
Why does this market exist? Life happens. Sometimes owners age and travel less, face unexpected financial challenges, or decide timeshare ownership no longer fits their lifestyle. When they’re ready to move on, they may turn to the resale market.
The resale process usually involves three players: the seller (current owner), buyer, and potentially a third-party facilitator. This is where things can get tricky. While lower resale prices look tempting to buyers, it may mean missing out on developer perks, upgrade opportunities, and valuable exchange programs only available with direct purchases.
The market also harbors risks, including upfront fee scams targeting sellers and misleading representations to buyers. Whether you’re buying or selling, you’ll typically find superior benefits and protections with direct developer options compared to resale alternatives.
Is Timeshare Resale Legitimate?
Yes, timeshare resale is completely legal and legitimate, but realistic expectations are crucial. A fundamental issue is that timeshares aren’t financial investments, so sellers shouldn’t expect to recoup original purchase prices when reselling. And buyers should view purchases as vacation promises rather than traditional real estate assets.
The resale market benefits from oversight and resources provided by several key organizations:
- The Federal Trade Commission (FTC) oversees consumer protection aspects of timeshares, targeting organizations that use deceptive sales tactics, misleading advertising, and fraudulent resale schemes.
- The Association of Real Estate License Law Officials (ARELLO) helps verify broker licensing.
- The American Resort Development Association Resort Owner’s Coalition (ARDA-ROC) has a Resale Resource Center providing lists of reputable resellers.
The safest approach to reselling involves working with a licensed real estate professional who specializes in timeshare resales. Always verify their credentials through ARELLO and check for complaints with your state’s consumer protection agency. The FTC warns against any resale broker requesting upfront fees — legitimate brokers work on commission after successful sales.
However, before exploring the resale market at all, contact your timeshare developer or homeowners’ association (HOA) first. Many offer internal programs or buyback options that could prove more favorable than dealing with third-party sellers.
Most Popular Timeshare Resellers
Third-party timeshare resellers connect sellers with buyers, operating as licensed brokers who handle full transactions for commission, or as platforms that advertise listings online. Reputable companies include:
Fidelity Real Estate – They focus on big names in vacation ownership, like Disney Vacation Club, Marriott, Hilton Grand Vacations, and Wyndham. As a licensed brokerage, they handle everything from start to finish, including marketing, buyer qualification, contract negotiations, and closing coordination. They specialize in points-based systems and higher-end resort brands.
Timeshare Broker Associates – This licensed brokerage works with a wide range of resort brands including Westin, WorldMark, Disney, Wyndham, Marriott, and Hilton properties. Their agents will help you figure out realistic pricing, create marketing strategies, and guide you in understanding the ins and outs of different vacation ownership programs.
SellMyTimeshareNow – You’ll have the choice to either handle the sale yourself using their online marketplace or go full-service with their licensed brokers. Their website features thousands of listings from all kinds of resorts and locations. They also offer helpful tools like pricing guidance and educational resources to help you understand what you’re getting into.
RedWeek – Calling itself the world’s largest timeshare marketplace, it’s primarily an online marketplace where you can list your timeshare for sale or rent. You pay a flat listing fee with their DIY option, or a commission for their full-service model. They offer market data to help with pricing for the DIY option.
A Timeshare Broker – You’ll find two options for selling your timeshare here. Option one: The company makes an immediate offer to purchase your ownership directly, meaning you pay nothing upfront and receive a payment faster than if you list your ownership. Option two: You can list your timeshare for free (they’ll include a market analysis of your ownership), and you’ll only pay a commission if they successfully sell your ownership.
Timeshares Only – A trusted member of ARDA, they operate as both a marketplace and full-service brokerage, also offering an exclusive maintenance fee relief program called TO GO that helps owners put money back in their pockets while waiting for the right buyer. Customers that sign up for this program can receive cash for their ownership, as well as discounts on exclusive vacations.
While these companies offer legitimate services, it’s important to understand all your options. The table below compares popular resale channels, highlighting the key advantages and drawbacks of each approach.
|
Channel |
Description |
Pros |
Cons |
|---|---|---|---|
|
Online Marketplaces |
eBay, RedWeek, Craigslist, Facebook Marketplace |
Broad audience reach, low upfront costs, complete control over listing |
No buyer vetting, high scam risk, time-consuming inquiries, limited transaction support |
|
Third-Party Brokers |
Licensed resale agents |
Professional handling, marketing expertise, transaction management |
Commission fees (15% to 25%), no guaranteed sale, lengthy process, limited buyer networks |
|
First-Party Developer |
Official deed-back options, developer buyback programs, internal resale assistance |
Simplifies exit process, eliminates scam risk, maintains relationship with trusted developer |
Often minimal or no payout, limited availability, selective eligibility criteria |
|
Private Sales |
Word-of-mouth, personal networks, family transfers, direct buyer contact |
No commission fees, personal connections may impact pricing, flexible terms |
Very limited buyer pool, no marketing support, complex legal paperwork, time-intensive |
|
Timeshare Exit Companies |
Centerstone Group, The Stonegate Firm |
Handles legal complexities |
Expensive upfront fees, no guaranteed results, many fraudulent operators |
Downsides of Working with Third-Party Resellers
Working with third-party resellers comes with several significant drawbacks. Commission fees typically eat up 15% to 25% of your sale price, further shrinking an already disappointing payout.
Many resellers operate with little oversight, and the market is flooded with scams — particularly companies demanding large upfront advertising fees with no guarantee of a sale. If anyone requests upfront fees or payments, proceed with extreme caution. You could end up losing money and still have ownership obligations.
Even with legitimate brokers, there’s no guarantee your timeshare will sell. It could sit on the market for months or even years.
In addition, many timeshare contracts include Right of First Refusal (ROFR) clauses, which give developers the right to match a buyer’s offer and purchase the property themselves. This can disrupt third-party transactions at the last minute, frustrating both buyers and sellers.
Because of these challenges, many owners find it’s best to start out working directly with their developer for more peace of mind. Developers typically offer greater transparency, support, and clearly defined exit pathways that can help you avoid common pitfalls in the resale market.
Timeshare Reselling Risks to Watch Out For
Unfortunately, the timeshare resale world is full of bad actors ready to take advantage of owners and potential buyers. Becoming aware of these common scams and red flags can save you thousands of dollars and a lot of heartache.
Upfront Fee Scams
This is the most common resale scam. Companies call claiming they have a “hot buyer” ready to purchase your timeshare immediately, but first you need to pay upfront fees for “taxes,” “escrow,” or “processing.” Once you pay, they disappear or come up with new excuses for additional fees. You can avoid this by only working with licensed brokers or legitimate, vetted organizations.
Fake Buyer Scenarios
Scammers contact you claiming to represent a buyer who’s desperately seeking your exact timeshare and willing to pay top dollar. They create urgency by saying the buyer is leaving town soon or has other options. After you agree, they hit you with upfront fees. Always verify the buyer’s existence independently and be suspicious of any “too good to be true” offers that come out of nowhere.
Phony Market Reports
Some companies send official-looking market analyses claiming your timeshare has appreciated significantly and is in high demand. These fake reports are designed to make you believe a quick, profitable sale is guaranteed if you sign with them immediately. Research actual market values through multiple sources and be skeptical of unsolicited appraisals that seem inflated.
Title Transfer Fraud
Scammers offer to “transfer” your timeshare to a third party who will take over payments, claiming this gets you off the hook legally. In reality, you often remain liable for all obligations while losing control of your property. Never sign over your deed without proper legal counsel and title company involvement. Legitimate transfers require proper documentation and legal processes.
Rental Income Promises
Some companies promise to rent out your timeshare and cover your maintenance fees while splitting profits with you. They collect upfront management fees but rarely deliver any rental income. Research the company thoroughly and understand that timeshare rental markets are typically oversaturated with limited profit potential.
Exit Company Scams
Companies claiming they can legally “cancel” your timeshare contract for large upfront fees (often thousands of dollars) prey on desperate owners. Many provide no real services and simply abandon clients after collecting payment. Research any exit company extensively, check Better Business Bureau ratings, and understand that legitimate contract cancellation is rare and doesn’t require massive upfront payments.
High-Pressure Advertising Packages
Some companies offer expensive advertising packages promising extensive marketing exposure, but your listing gets buried among thousands of others with little actual promotion. They may charge high rates for “premium” listings that receive no more attention than basic ones. Before paying for advertising, research the company’s actual sales success rates and ask for verifiable references from recent clients.
Alternatives to Timeshare Reselling
Before diving into the complicated and often disappointing third-party resale market, consider these alternative options that might better suit your situation. Each approach has its own advantages and requirements, but they’re generally safer and more straightforward.
- Contact Your Developer First: Most timeshare companies offer internal programs to help owners transition out of their contracts, including deed back programs, hardship assistance, or approved exit pathways. These developer-sponsored options are typically your safest bet since they’re legitimate, and the company already knows your contract inside and out. You may be surprised by what options are available that you never knew existed.
- Transfer to a Family Member: Gifting or selling your timeshare to a relative can be an excellent solution that keeps vacation benefits within the family while relieving you of ongoing obligations. This option works particularly well when younger family members are interested in vacation ownership and want to avoid initial investment costs.
- Donate to Charity: Some charitable organizations still accept timeshare donations, though this option has become less common in recent years due to the ongoing maintenance obligations. You may qualify for a tax deduction based on the property’s appraised value but consult with a tax professional first.
- Consult a Timeshare Attorney: If you believe your original purchase involved fraud, misrepresentation, or violated state regulations, a qualified attorney specializing in timeshare law may be able to help. Legal consultation can be particularly valuable if you’re facing financial hardship.
How to Get the Most Out of Your Timeshare
9.9 million U.S. households enjoy vacation ownership, according to ARDA. A 2022 report found that 90% of timeshare owners reported a high satisfaction rate and 84% stated they would purchase their timeshare product again. If you’re a current owner considering an exit, these tips can help you rediscover the true value potential of your timeshare. And for prospective buyers, they demonstrate ways you can benefit from the right approach to vacation ownership.
- Join a timeshare exchange company – Sign up with exchange networks like Interval International to make sure you don’t lose your vacation time even when life gets in the way due to illness, work conflicts, or emergencies. You can deposit points into the exchange system and receive credit for future use instead of losing them entirely. Plus, you gain access to thousands of other vacation experiences, like cruises and guided tours. Keep in mind that some resale purchases may come with limited or no exchange privileges.
- Take advantage of last-minute opportunities – Whether through your timeshare’s exchange company or internal network, you can often score discounted vacations when other owners cancel close to check-in. These deals may require fewer points, lower fees, or even just a small cash payment, letting you stretch your ownership further. Developer purchasers may enjoy broader access to these programs than resale purchasers, so it’s worth asking about what’s available to you.
- Plan around peak times – When using your timeshare for external exchange, booking high-demand resorts during peak seasons can maximize your trading power. This strategy works best when you have full exchange privileges.
- Connect with owner communities – Join forums or Facebook groups like Timeshare Users Group to learn insider tips from experienced owners who’ve been maximizing their ownership benefits for years. These communities may also help you understand the differences between developer and resale purchase benefits.
- Consider renting when you can’t use it – Rather than losing your points entirely, rent them out to help offset maintenance fees while still retaining all the long-term benefits of ownership. Be sure to understand your resorts’ rental policies, as some restrictions may apply.
- Deposit high-demand weeks to boost trading power – If you’re using your timeshare for external exchange, the value of what you trade in (your “trading power”) is based on factors like location, resort quality, and season. Depositing a high-demand week — such as spring break or holiday periods — can increase your exchange value, giving you access to better resorts or destinations in return. This strategy works best when you have full exchange privileges through your timeshare contract.
