Appreciation
The term Appreciation when used with traditional real estate purchases is the increase in value that the property has over a period of years. Most real estate investments will increase over a period of time, however timeshare or vacation club ownership very rarely increases over time. There are a number of reasons for this, the ownership is an interval of the whole entire development, and so even if the resort shows Appreciation the increase in net value to each timeshare owners is negligible. Also due to the variation in pricing of a timeshare or vacation club depending on which season it falls into, it is often difficult to appraise a resort
The fact is that most timeshares over a period of time depreciate in value and that is the reason why owners look to resale for an exit program to sell their timeshare. Many owners look to their home resort when selling their timeshare, however this can be very costly, most resorts either charge a huge commission, or only willing to pay the minimal most timeshares are appraised at. This is why most owners turn a Timeshare Resales Company like Visions of the World who will market their ownership until sold, and find a buyer who in turn can save thousands on developer prices.
In most cases timeshare resorts or developers are often only prepared to buy back ownership at a fraction of the price that you paid originally, and in turn will then sell it to a buyer at an inflated price based on the appraisal of the whole entire development. Apart from the inflated price, resorts have many expansive over heads such as marketing and administration, which lend to the over inflated prices. When buying a resale these costs are negated and the purchaser pays the going market price rather than the inflated resort price. All in all both buyer and seller are getting a better deal by using a Timeshare Resale Company.
Go back to Timeshare Glossary of Terms
