What is the ROFR and why should you know about it? Westgate Timeshare properties incorporate a right of first refusal clause into their contracts. Like it sounds, this clause means that you must offer Westgate a chance to purchase your condo before you can sell it to someone else.
This sounds like good protection for the seller doesn’t it? And it may well be. It definitely protects the Westgate resorts as they retain control of their properties. But think about the process involved. You as the owner must first seek a buyer on the open market. When you find a buyer, you then notify Westgate timeshare. If they decide to buy, they pay the same price the buyer offered. You as the seller are happy but the buyer is not. The right of first refusal clause is becoming more known in the resale timeshare market and may be putting potential buyers off. If you cannot get a buyer, then Westgate do not have to make you an offer.
The other reason that resale values on these properties are quite low is simply the fact that there is a huge supply on the market. The depreciation rate on all new timeshares is high but it is particularly high with Westgate. There is a huge difference between the prices initially paid and the values attainable on the resale market.
The ROFR clause doesn’t prevent you from buying a resale property but you just need to be aware that you could fall in love with your dream unit only for Westgate to buy it first. They may offer to resell it to you but probably at a higher price than if you had dealt direct with the seller.
If you still want to buy a Westgate vacation unit, you need to decide what type of unit you wish to buy.
1) Do you have the same vacation period every year? If so, then you are probably best purchasing a fixed week contract. The resale market value is generally higher for fixed weeks rather than floating weeks. People do not like the risk that they may not be able to use their week due to someone else having booked it first.
2) Do you intend on using the same timeshare every year or do you want to use it as a means of exchange so that you can visit other locations. If you intend to go to the same place every year, then pick the week that suits you best. If however, you plan on exchanging your timeshare week to go somewhere else, you need to plan your location and season choice more carefully. It is also best to buy a fixed week contract as this will allow you to exchange up to two years in advance of travel giving you plenty of time to pick your new holiday destination.
Westgate Timeshare is affiliated with Interval International. This widens the range of exchanges possible so you want your unit to be as attractive as possible if you intend seeing the World using this one vacation home.