Alameda, California (EastBayDaily) — Many timeshare experts and newcomers alike will find themselves wondering why resale values have been stagnant for some developers while other developers are seemingly impervious to the threat of falling resale prices.
Selling Timeshares, Inc., a licensed Real Estate brokerage who specializes in Hilton Timeshare Resale, has posted an informative article on their timeshare blog about why Hilton timeshares, and other timeshare developers who adopt a First Right of Refusal program are better able to weather the economical storm that’s affected almost all real property in America.
First right of refusal programs are just what they sound like. Before selling their timeshare, owners are required to give the developer the right to purchase the ownership back, directly from the owner. If an owner wishes to sell their timeshare to another individual, they will be obligated to submit the purchase agreement to their developer prior to being able to move forward with the transfer and sale.
The developer can then choose whether or not to purchase the ownership for the price the owner has secured in the agreement with their buyer. With Hilton, owners are guaranteed at least what they are contracted for. It is not a detriment to the seller if the ownership is purchased from the developer, as the transfer will be carried out just like any other.
David Van Norman, a licensed Real Estate agent for Selling Timeshares, Inc. mentions, “Many other clubs’ value would be significantly higher if they adopted the resale safeguards that Hilton has used in their vacation club.”
This is a way for the developer to control what price the ownerships are sold for on the resale market. A developer will generally only exercise their right to purchase the unit if the price it is sold for is very low when compared to the original retail purchase price of the unit.
From the perspective of the timeshare owner, first right of refusal can be a very positive thing. It generally means there will be a controlled secondary market for their ownership, which leads to stability in Hilton resale prices, and prevents the ownership from being devalued to the point of being a liability for the owner or their heirs.
About Selling Timeshares, Inc.
Selling Timeshares is comprised of a group of Licensed Real Estate Professionals with years of knowledge of the most valuable vacation networks offered in today’s market. They are a full service timeshare resale brokerage that does not charge an upfront fee to sell.
Follow them on twitter @sellngtmshrsINC Like them @ facebook.com/sellingtimesharesinc
David Van Norman