The reasons people buy timeshares are many and varied. Perhaps it was a persuasive pitch from a resort sales person, or maybe it was a desire to visit a particular destination each year but without the cost of owning a full-time home. Whatever the reason, as time passes and tastes change, it is possible that a timeshare may no longer be appropriate for one’s lifestyle.
If this is the case, then many owners turn to the resale market for help in selling their timeshare. But this can be a tricky business. Many of the same laws that govern real estate transactions apply to timeshare resales, and there are some serious caveats.
First and foremost, buyers are competing with many other sellers. The best way to ensure that your timeshare will sell is to price it competitively. To do this, you will need to research the market. Find out how much other resales at your specific resort are going for, check the sold history section on TUG, look at completed listings on eBay or our classified ads, and consult with a broker who specializes in timeshare resales.
It is also a good idea to consult with your resort and work through them if you are trying to sell your timeshare. Some resorts have “right of first refusal” agreements in place with resale companies. In these cases, if a buyer makes an offer and you are unable to sell your property, the resort will match the offer or buy it back from you. If you can get your resort to agree to this arrangement, you will save yourself some money on the sales commission.
Another important consideration is that, just like any other commodity, a timeshare can depreciate in value. Some experts suggest that it can even drop to less than 99% of its original value. This has been driven by the economy, the poor performance of the industry in general, and the ever-increasing maintenance fees.
There are some resale companies that claim to be able to help you sell your timeshare, but they often come with some big warning signs. For example, if you are asked to pay an upfront fee of any kind – for advertising, legal fees, etc – it’s likely a scam.
Finally, it is worth noting that selling a timeshare can be a long process. This is especially true if your property is at or near a popular tourist location. If this is the case, it is a good idea to advertise your property in multiple locations and with multiple brokers. This will increase the likelihood of finding a buyer and help you sell your timeshare as quickly as possible. A reputable broker will also be able to guide you through the process and help you avoid some of the pitfalls.