The Timeshare Secondary Marketplace: The Rest of t

Market Differences

Aside from the obvious, there are two major differences between traditional real estate ownership and resort vacation ownership. First, traditional real estate is a necessity item and vacation ownership is a luxury item. Second, in traditional real estate, the consumer seeks the product, and in timesharing, the consumer is enticed to the product. These two facts alone allude to the difficulties of selling timeshares.

In traditional real estate, there is both a primary market where the residential or commercial developer takes the risk of marketing and selling; and a secondary market where the individual owner bears the burden of marketing and selling. Owners in the secondary market often choose a real estate professional for assistance. These two markets comprise the total traditional real estate marketplace. Both are clearly understood, accepted within the industry and readily accessible to the consumer.

Traditional real estate is usually a local (neighborhood) market and has a distinct marketing advantage over the timeshare market. According to the National Association of REALTORS®, the most effective medium for selling homes is an inexpensive yard sign on the seller's property. This is not an option when selling timeshares because the resorts do not allow it. Typically, purchasers of residential real estate preview the property. This option is not always available to timeshare purchasers because many resorts refuse to cooperate with reselling owners and brokers. Due to the discretionary nature of vacation ownership, leisure is the motivation not necessity, as with traditional real estate.

When qualifying traditional real estate buyers, the buyers generally want a certain subdivision or a certain part of town. Timeshare buyers usually have several generic vacation choices such as snow skiing in Colorado, the beach in Cancun, or a golf course at Hilton Head. This is a much harder sale to consummate... and for a lot less money.

In traditional real estate, the two biggest complaints by sellers are (1) the price was too low and (2) it took too long to resell. Timeshare is no different.

Resale Difficulties

There is a growing demand for a viable timeshare secondary market. Lifestyles change, children grow up, people divorce, encounter financial hardships or just get tired of their timeshare and want to sell.

Today, the timeshare industry is older and larger, with more timeshare owners. Even though the market has matured, many resort developers choose to ignore and leave to chance the resale difficulties faced by their owners.

If the owner's resort offers no resale program, there are very few options remaining for the owner to resell the property. As in traditional real estate, timeshare buyers often presume that they will have at their disposal a secondary marketplace.

More than half of U.S. timeshare resorts have no on-site resale program. The same resorts offer no resale program whatsoever and many advise against the use of other programs.

From the 1970's (when the timesharing industry was still young) through today, owners find themselves in the predicament of wanting to sell their units but having few choices to do so. Many timeshare resorts are simply not equipped to handle resale services for their owners; and neighborhood real estate offices have neither the expertise nor the desire to enter this specialized field of real estate. In the beginning, the only option available to owners was to sell it by advertising it themselves or give it away to a friend or relative.

It is literally cost prohibitive for the consumer to advertise timeshare property in the manner necessary to get crucial national and international media exposure. The cost to advertise in USA Today with a minimum four-line, four-day classified ad is $1,136.

Credible Resale Services

In many instances, without timeshare resale specialists supporting the secondary market where individual owners can operate, resort foreclosure can be the end result. Projects must rely upon the owners paying maintenance fees to support its operations once the developer sells out the resort. A strong resale market is essential to the timesharing community. In order for the industry to thrive, timeshare owners must have access to credible outlets through which they can resell their property.

The ability to resell is critical for the industry to prosper. Today, there are several suitable timeshare resale assistance options available to timeshare owners.

Some of the more pro-active developers and Home Owners' Associations (HOA's) have resale programs available on site to accommodate their owners who want to sell. However, only about 40% of resorts offer on-site resale services. Most on-site resale service programs are not independent of the resort. The resort subsidizes such programs. The HOA on-site reseller may obtain free inventory to sell (repossessions and foreclosures) -- thereby pocketing not simply a commission but the entire sales price. These on-site resellers receive the marketing advantage of access to renters, exchangers and those owners who desire to sell. Many on-site resellers require that the HOA provide office space, utilities and a high visibility location. Regrettably, this ?marketing advantage? is actually paid for by the individual owners' maintenance fees.

It creates a conflict of interest when a timeshare broker sells on his own behalf and at the same time, takes listings from owners.

A few real estate offices located near some of the timeshare resorts also offer resale services. These offices generate their income from the traffic going to and from the resort.

These two programs (on-site at the resort or in close proximity thereto) sometimes work but do not satisfy the demand. They can be credible, and they may produce some results. Sadly, they are limited to only certain resorts and certain locations. With the majority of U.S. timeshare resorts offering no on?site resale program, there is a huge unserved market.

Timeshare Reselling: It?s A Global Market

The international broker specializing in timeshare 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.

To further illustrate the widespread geographical reach of timeshare, multi-state and international exchange programs are considered to be the number one motivating factor in new sales purchases. Following is a typical resale scenario: A resident from Canada buys a Florida timeshare property from a resident of California who also owns another timeshare located in Colorado that he purchased from a resident of New Hampshire. This sale scenario does not even address the residences of the other ten or twenty potential buyers that were solicited to effect this one sale.

The above example shows the interstate nature of the industry and the need for brokers operating on a national and international plane.

High Resale Marketing Costs

High marketing cost is one of the underlying problems associated with both timeshare resales and new sales. It is estimated that the marketing costs alone are over 40% of the new sales price paid by the consumer. Individual timeshare owners and the general public have a negative perception of these inordinately high marketing 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 developer's 40-50% marketing costs on a $10,000 new timeshare sale often exceed the resale price.

The resale dilemma is further magnified by a sales technique commonly used by resort developers at the new sales table. Following is an example of this technique, referred to as ?the drop.? The salesperson initially presents the property for $15,000. To increase the urgency for the consumer to buy, a manager is brought in to offer it for $



Posted by R. Scott Kesner on December 13, 2008 at 12:00 AM

About R. Scott Kesner
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Local Information for El Paso, TX

Latitude: 31.790208 -- Longitude: -106.423242


ZIP Codes for El Paso, Texas 79901  79902  79903  79904  79905  79906  79907  79908  79910  79911  79912  79913  79914  79915  79916  79917  79918  79920  79922  79923  79924  79925  79926  79927  79928  79929  79930  79931  79932  79934  79935  79936  79937  79938  79940  79941  79942  79943  79944  79945  79946  79947  79948  79949  79950  79951  79952  79953  79954  79955  79958  79960  79961  79966  79968  79973  79974  79975  79976  79977  79978  79980  79982  79983  79984  79985  79986  79987  79988  79989  79990  79991  79992  79993  79994  79995  79996  79997  79998  79999  88510  88511  88512  88513  88514  88515  88516  88517  88518  88519  88520  88521  88523  88524  88525  88526  88527  88528  88529  88530  88531  88532  88533  88534  88535  88536  88538  88539  88540  88541  88542  88543  88544  88545  88546  88547  88548  88549  88550  88553  88554  88555  88556  88557  88558  88559  88560  88561  88562  88563  88565  88566  88567  88568  88569  88570  88571  88572  88573  88574  88575  88576  88577  88578  88579  88580  88581  88582  88583  88584  88585  88586  88587  88588  88589  88590  88595 
Area Code for El Paso, Texas 915
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El Paso is the county seat of El Paso County in the U.S. state of Texas. According to the 2005 U.S. Census population estimates, the city had a population of 598,590, making it the sixth-largest city in Texas and the 21st-largest city in the United States. El Paso is second only to San Diego, California in size among all U.S. cities on the U.S.-Mexico border. Ciudad Juárez, Chihuahua lies opposite of the Rio Grande (Rio Bravo del Norte)—which separates the two cities—forming a bi-national metropolitan area of 2,280,782, making it the second-largest bi-national metropolitan area on the U.S.–Mexico border. El Paso is home to the University of Texas at El Paso (founded in 1914 as The Texas State School of Mines and Metallurgy and receiving university status 1967). Fort Bliss, a major United States Army installation, lies to the east and northeast of the city, extending north up to the White Sands Missile Range. -- Source: Wikipedia.com




Texas 2000 Census Population Profile Map

El Paso Texas United States
Population 563,662 20,851,820 281,421,906
Median age 31.1 32.3 35.3
Median age for Male 29.4 31.3 34
Median age for Female 32.8 33.4 36.5
Households 182,063 7,393,354 105,480,101
Household population 558,533 20,290,711 273,643,273
Average household size 3.07 2.74 2.59
Families 141,071 5,247,794 71,787,347
Average family size 3.54 3.28 3.14
Housing units 193,663 8,157,575 115,904,641
Occupied units 182,063 7,393,354 105,480,101
Vacant units 11,600 764,221 10,424,540

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R. Scott Kesner - Century 21 DKD Associates Inc.
R. Scott Kesner
Century 21 DKD Associates Inc.


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