Is it Best to Buy Directly from the Developer or as a Resale?

Overview:
Developers are individuals or corporations who conceive timeshare projects and purchase the property to create them. They also obtain regulatory approval for the construction. They then build the resort, or sub-contract the construction, and sell the condominiums in the resort to individual buyers. This is usually the end of the developer’s involvement.

Although not always. Some developers, like Disney, Marriott and Hilton have divisions which also manage their resorts.

A developer has a marketing and sales budget which is used to publicize the benefits of his product. This budget also allows the salesman to provide incentives-----often worth many thousands of dollars-----to purchasers. Sometimes this promotions budget can be up to fifty percent of the sale price.

After buying a unit in a resort some owners, often due to changed circumstances, offer their timeshare for re-sale. So, just like for any other type of property, there are new sales and re-sales of timeshare, both have their advantages.

Benefits of buying new:

• Peace of mind—a new condominium, whether for timeshare or fulltime occupancy, comes with guarantees and obligations from the developer and builder.
• You will receive benefits and promotional incentives from the developer that are only accorded to new buyers. Things like bonus weeks. These are given to new buyers for a set number of years by numerous developers.
• Reward Points from companies like Marriott and Hilton that can be exchanged for hotel stays.
• Free exchange membership is provided to new purchasers by some Companies.
• There is no other way to obtain ownership, with all the benefits, in some high demand resorts. Some companies even have exclusive re-sale programs that guarantee incoming purchasers all the new purchaser benefits. But prices are usually comparable to new prices. This is a way of maintaining re-sale value at some fashionable developments.
• It may be the only way to obtain your preference week in some highly sought-after areas with limited opportunities for development.

Advantages of buying a re-sale timeshare property:

• The price is invariably less than for new units. Sometimes by a substantial margin, depending on the location, quality of resort and the week being sold. As noted, the developer has a marketing and promotions budget when he first sells his timeshare product. Re-sellers do not usually recoup these costs, which in some instances can be up to fifty percent of the new price.
• There is a wider range of re-sales available.