Whether your travel interests have changed or you simply can’t stand the high maintenance fees any more, there comes a time for most owners to say, “I want to sell my timeshare.” The good news is that there are more options than ever before to get rid of a costly vacation ownership. However, it is important to understand the challenges involved and how to avoid being taken advantage of.
It is highly advisable that you work with a licensed broker who specializes in your developer’s timeshare resales. Their knowledge of the current market landscape aids in pricing your timeshare appropriately, negotiating offers and performing the closing process. Be sure that the broker you choose does not charge up front fees for advertising, legal expenses or any other purpose. This is a red flag and should be avoided at all costs.
A reputable broker will also never promise that they have buyers lined up to buy your timeshare. This is not only false but can be very dangerous. Many companies that make this type of claim are scams and should be avoided at all costs.
The reason that most timeshares have depreciated so much in value is the fact that supply far exceeds demand. People who are looking to purchase a timeshare at a particular resort are able to find it on the resale market for pennies on the dollar compared to what they paid when they purchased it new from the developer.
In addition, many timeshares are encumbered by contracts with the developer or management company that require you to pay real estate taxes, insurance and maintenance obligations for the building and all units in it. These additional costs are not included in the resale price and must be paid by the buyer at closing.
You can help increase the chances of selling your timeshare faster by implementing some simple strategies. Start by having a conversation with your resort’s management and marketing department about the resale program. They may have some ideas to help you. In addition, check with your resort’s bulletin boards for for sale notices from other owners. Often, other owners will be willing to buy or trade your timeshare for a week at their home resort.
Regardless of what you do, it is vital that you realize that you will never get back what you paid for the timeshare when you try to sell it. Remember, you purchased the timeshare for use and enjoyment. If you are unable to utilize your timeshare, the only way to get it off your hands is to sell it.
If you decide to sell your timeshare, be aware that your resort might have the right of first refusal on the sale. If it does, the resort will match any offer you receive or buy the timeshare from you. If you agree to sell your timeshare to someone outside the resort, the resort will probably require you to sign a written agreement that states the sales commission must be paid by the buyer at closing.