Potential buyers that are considering the purchase of a timeshare ownership may or may not be aware of the resale market. Those who are familiar, may ask themselves, “Should I buy a Hilton timeshare from the developer or on resale?” It is a fair question and one that can only be answered, after gathering information about both buying options presented in this question.
Invest Wisely
Similar to buying a car, as soon as you buy a retail timeshare (from a developer) the value drops as soon as it is driven off the lot. The resale value is considerably lower than what you will have paid. In very rare circumstances, will the resale value spike high enough to come close to the retail value and banking on this happening is not a wise investment strategy. Return on investment is very low when buying from a developer. However, with Hilton’s right of first refusal (ROFR), the return on investment from purchasing resale can be considerably more appealing, especially considering not only the monetary value but also the personal value. A resale ownership gives you the exact same units to stay in as the retail, so your personal value compared to your monetary investment is much higher.
There are a number of other timeshare developers that have almost no resale value. These properties show up on craigslist and ebay for just $1, routinely. Hilton properties will never sell for that little because they have ROFR. Another reason is the fair business practices and excellent customer service provided by Hilton Grand Vacation Club (HGVC). So, while investing in retail HGVC may not be ideal, it is much safer than other timeshare ownerships without right of first refusal.
Hilton Grand Vacation Club
HGVC is one of the top timeshare resort clubs in the world. They pride themselves on excellence and it shows in the quality of their properties and customer service. Hilton develops their own properties or will manage an existing property under their own name, then they sell ownerships to those properties with presentations. These presentations are very costly due to the fact that they offer gifts or greatly discounted trips in exchange for attending these presentations. This cost is worked into the price of every ownership sold from the developer. When you purchase an ownership from a developer, you are paying for the cost of the gifts, trips and the aggressive sales reps.
Once purchased from a developer, if you buy 14,000 or more points, HGVC will give you Elite status. Elite members may have lower fees when making reservations as well as VIP HHonors membership. Owners who purchase their timeshare on the resale market do not have access to the Elite status. This is the only difference between buying from the developer and resale after you purchase. Everything else is purely the buying experience.
Once your purchase is complete, owners will have access to the world-class customer service and beautiful properties in the HGVC collection. Although you have a home resort booking priority window each year at your home resort, where you can book your home resort before owners at other locations, you may also use your points associated with your ownership to visit other resorts. You can either book within the Hilton collection or book a vacation at another club with RCI. RCI is the largest timeshare exchange company on the planet with thousands of properties available to you. HGVC has special access to RCI’s database and you may book an RCI vacation on Hilton’s online booking portal or call them at their reservations number.
Buying From Your Resale Timeshare Broker
When you buy from an honest resale broker, you will experience a more consultative approach to the sales process. The broker is not going to be pushing you to purchase a specific location, so there is no need for them to pressure customers into a sale. Because of this, customers are able to find the right location and week. Without the sales presentations and trips cost, a resale broker can afford to sell the HGVC ownerships at drastically reduced prices.
When you are looking for a timeshare resale broker, you want to make sure they are licensed to sell real estate in the state their business is located in. This will ensure that your transaction is legitimate and no legal problems will occur in the future. You can ask for their information directly and if they refuse to give up their information, it is probably a good idea to move on and find another broker. The Better Business Bureau is another good place to research a potential broker or your current broker. The BBB is a wealth of information about current businesses and their business practices. Consumers can file a report or complain about a company. These reports can give the business a way to clear up the customer’s issue or explain the problem.
Buy Smart
Scams and fraud are also reported to the Better Business Bureau. If you think you may be targeted or already a victim of a scam, you can check to see if you are. Unfortunately, the timeshare industry has received a bad reputation for scams and less than reputable business practices. Fortunately, there are many good companies out there that want to make timeshare ownership a positive and rewarding experience. As you are navigating the buying process, be sure to do your do-diligence and research to ensure that you are protecting yourself.
If you have any questions about Hilton Grand Vacation Club or anything else discussed here, please feel free to contact us.
