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TIMESHARE RESALES

          There exists no viable secondary market for many or most timeshares, with some exceptions for players in the industry that have refrained from disparaging their reputation and the good will associated with their brand.[1] Moreover, upon any visit to online portals wherein consumer-owned timeshares are listed, such as Redweek,[2] or eBay,[3] it very rapidly becomes clear that these listings typically involve little or no exchange of money.[4]

In point of fact, timeshare developers will intentionally suppress any efforts to create a viable resale market in their products, for fear of having to compete with such a market on a cost-per-unit basis.[5]  It follows that there exists no intrinsic value in the consumer ownership of such an asset – moreover, a rigorous cost-benefit analysis of the “typical” timeshare will generally reveal that it’s more properly characterized as a net-liability.[6]

As indicated, a handful of developers manage timeshares that can be resold, albeit typically for only a fraction of the cost of acquisition. And there do exist reputable, license realtors that can facilitate these transactions.[7]  One who owns such an interest outright seeking a cost-mitigating exit-strategy should consult such a realtor, but should avoid anyone unvetted and unlicensed, as there are also unscrupulous individuals and companies that operate in this space.

[1] https://www.wsj.com/articles/should-you-travel-to-disney-right-now-a-debate-11618593177?mod=searchresults_pos2&page=1

[2] https://www.redweek.com/timeshare-resales

[3] https://www.ebay.com/sch/i.html?_nkw=timeshares&ssPageName=GSTL

[4] Id.

[5] https://fintel.io/doc/sec-drii-diamond-resorts-international-10ka-annual-report-2016-august-08-18068, p.28

[6] https://aaronsonlawgroup.com/a-consumer-finance-guru-looks-at-timeshares/

[7] https://www.bbb.org/us/ca/la-quinta/profile/timeshare-companies/preferred-timeshare-resales-1066-89077118/#sealclick

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