Timeshare purchases often are made on a whim. Sure, it sounds like a good idea during the sales pitch, but in due time, buyer's remorse creeps in. What follows is a desperate pursuit to get rid of the timeshare property. One of the common ideas: resell it.
Alas, that is easier said than done.
So, why are timeshares hard to sell? The short answer is the timeshare companies make it that way, so you can’t get out of the deal. However, in this guide, we’ll go more in-depth. By the end, you should have a better grasp of how to get rid of your timeshare.
When timeshare buyers are dissatisfied, they try to work it out with their resort first. Although, timeshare companies can be tough negotiators, especially if you try to exit an agreement that profits them. So, when help from the resort proves useless, some turn to timeshare resale brokers.
Timeshare resales refer to a timeshare sold by existing owners instead of resort developers. While it may sound like a niche market, there is an alarming number of resellers. Yet, the problem is a lack of potential buyers. That makes it difficult for anyone selling timeshares in the secondary market.
As a timeshare owner, reselling is not easy. Many write it off as being unable to compete with the new properties sold by resorts. However, resale timeshare properties are cheaper, sometimes for as little as $1! So why are more people not taking advantage of the resale market?
The lack of buyers in the resale market is due to little interest in timeshares in general. The reason people do not shop for used timeshares is the same reason they are not shopping for new timeshares. The only difference is the resorts have expendable funds to bring in new clients.
Resellers are all on their own. There is no sales presentation, marketing budget, or staff members researching potential buyers. While the resort salespeople do an excellent job of hiding a timeshare’s shortcomings, resellers cannot afford to do the same. When you see a timeshare for sale in the secondary market, you see it for what it is.
Below are just a few examples of timeshare imperfections that make it so challenging to resell them:
While timeshares often are regarded as real estate, they don’t function like it. Unlike real estate options such as a house or even a vacation home, timeshares have no investment value. You cannot expect to sell your timeshare one day and make a profit. The resort staff may have told you that your timeshare’s value would appreciate, but in fact, it does the opposite. Selling a timeshare is tough when everyone knows it has no value.
What if you discovered that your timeshare will never get paid off? That’s a difficult pill to swallow, but it’s true considering annual maintenance fees. All timeshare owners must pay these expenses as long as they remain owners. What's worse is the cost increases almost every year as well. Let's face it, plenty of people would prefer investing in a vacation property that doesn't include annual expenses.
A huge red flag for reselling a timeshare is the risk of being scammed. With so many people trying to get out of timeshares but no clear path to take, many fall for resale scams. This transpires when resellers claim to have a buyer for your timeshare, and you just pay an upfront fee to complete the sale. Alas, these deals never go through. Instead, they run off with your money. With the risk of scams, selling your timeshare is tougher.
Despite the above shortcomings for timeshare resales, it’s sometimes the only reliable way to get out of a timeshare. If you contemplate selling a timeshare, the following are three steps to guide you:
First, dig up the original signed agreement regarding your ownership. Ensure that the resort developers have not outlined in-house exit options in the terms and conditions before moving forward. Even if not, you still need the specifics when listing your timeshare in the resale market.
What's more important is determining whether your timeshare agreement comes with a deed to the property or is a right-to-use timeshare. That needs to be transparent in your listing. Those with a deeded agreement should obtain a physical copy of the deed before selling.
After ironing out the details, contemplate an asking price. It's essential to set realistic expectations for your timeshare's resale value. To do that, first understand timeshares are not great investments as the salespeople touted.
Many timeshares end up worthless. Hence, settling on a price point can be challenging. Your best bet is to examine the current market and see how much similar units sell for. Don’t only look at the current listings; look at those already sold for a better idea.
The last step is to make the sale! The odds of recouping what you paid for your timeshare are slim. Often, owners are happy enough to escape from the recurring fees. Sometimes it’s better to cut your losses to prevent more debt from accumulating.
Before listing a timeshare for sale, ensure all fees and expenses are paid and up to date. Safe to say, nobody will waste their time looking at a timeshare if it is behind on payments. Also, fraudulent activity is rampant among resellers, so hiring a real estate agent could be helpful.
When reselling a timeshare, prepare for the event that you cannot sell it. Albeit, a new exit option has developed in recent years, giving owners another chance to reach timeshare freedom when selling doesn’t work.
If you cannot sell your timeshare, consider canceling it instead.
Cancellation companies find a way to terminate your timeshare agreement outright. They are professional timeshare exit experts using legal and ethical practices. While scams are less prevalent than in the timeshare resale field, finding a reliable company you can trust is still crucial.
Wesley Financial Group, LLC* is a wonderful example of a trustworthy and industry-proven timeshare cancellation company. With over ten years of experience, WFG has a track record that speaks for itself. If you need timeshare exit services, look no further. WFG might be able to help, so reach out today to see if you qualify!
*Wesley Financial Group, LLC, and its affiliates, successors, or assigns are not lawyers or a law firm and do not engage in the practice of law or provide legal advice or legal representation. All information, software, services, and comments provided on this site are for informational and self-help purposes only and not intended to substitute for professional advice, legal or otherwise.