Why Timeshares Lose Their Value
Timeshares lose their value if a project is not managed properly. Management of a timeshare is a delicate situation where the lack of experience and understanding will be financially harmful to all timeshare owners. Timeshares that at one time were worth ten of thousands of dollars in the past, are only worth pennies today. There are answers to why this has happened. All of this is avoidable with a little common sense and a few inquiries to companies that handle the trends of the industry along with programs designed to offset the circumstances at hand.
First why is your timeshare worthless? Well, you have spent hundreds if not thousands of dollars to sell your timeshare, but you get no bites. People today have their timeshare advertised for less than they paid for your unit when they first purchased it, but that is not the problem. The resorts general manager is selling units to any John or Jane Doe for $300.00 or less every day. A resort's first problem, the general manager does not believe in the resort or the concept of "timesharing" and has become a give away artist of the product. If a project is under a management company, the management company is only after the maintenance fee or rental monies and has no clue on "How to sell a timeshare" in most cases. Believing in the project and the product is step one or known as timesharing 101. How do you rectify this problem? Immediately fire the person or company creating your devaluation issues, this is a common sense theory that should not be taken lightly!
Second, pick a board of directors that understands the trends of the industry and timeshare owners in general. A first class BOD will understand the concept of timeshare and how to get the most out of them. A strong board of directors will have intense knowledge of a "Weeks" timeshare verses a "Points" timeshare and how both can be utilized for the maximum benefits of its owners. If that is not possible, consider contracting with a consulting company to guide your project through the process of how to maintain the value in your timeshare project.
Third, "STOP" giving away your waterfront property! This is Ludicrous! There are several options in the timeshare industry that allow for a project to support its value. Understand that most resort property management companies get paid for revenue generation. Management companies in most cases are not under contract to maintain a timeshare owners property values. "Resort management companies", are not sales, marketing or project management specialist in most cases. They appear to be "GIVEAWAY" experts! That means a timeshare owners investment as per the value of their timeshare will rapidly depreciate.
Fourth, keep your facility and programs current with RCI or II. A perfect example of a typical "Weeks" program timeshare on one of the best know auction sites shows a two bedroom, two bath every year unit right by Disney. $1 buys it. Prospective buyers see all the things you hope they do not see. Cheap resales! Unpainted facilities, green swimming pools, old furniture and appliances in the units, dead bushes and the list goes on. Recently, our staff visited a resort in Maine, Bar Harbor. Walking in the door during business hours in the main lobby, all the lights off except a few by the desk. A sure sign this resort is living on a very slim budget. These are just a few of the warning signs prospective buyers pick up on instantly. The resort manager thinks they are doing a good job. Wrong answer, penny wise but dollar foolish in this case. It was all visible throughout the resort that managing a prosperous project just did not exist. Displayed in the lobby of the main office was a list of "resales" right by the front desk. OUCH! The first question would be, why are they selling? What's wrong with this place? Their was not just one resale, but many being displayed. Timeshare is a vacation concept, making it fun will make it profitable. People in general remember the great vacations at outstanding places, but they also remember the bad ones as well.
There are Major flaws in the timeshare industry. So many resorts are being run by a "Board of Directors" who are being guided in their decisions by uninformed people. As vacation and free time trends change, a resort must make the changes as well to remain financially sound in today's environment. Professional resort consulting from http://www.resultsinc.net is at your finger tips and worth every dollar you will spend for their expertise. Why guess when you can know what is necessary to succeed. Our sales, marketing and project management programs are used industry wide, we control the master plans to the majority of them. Straight shooters for over 35 years.
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