Timeshares are not for everyone. Hence, the timeshare resale market. While buying these vacation club properties may be a great idea at first, many members realize the resort vendors gave them a false perspective. When that is the case, which transpires often, timeshare buyers look for ways out of their deals.
Reselling has become popular to unload the burden of unwanted timeshares. Alas, timeshare resales are often a double-edged sword. See below the benefits as well as the potential pitfalls of hiring a resale company to buy or sell a vacation property.
Timeshares trace back to the 1960s; within that time, they have grown into a multi-billion dollar industry. As timeshares rose in popularity, it was inevitable that a secondary market would eventually develop. A timeshare resale refers to vacation ownership that is, in turn, sold by individual proprietors rather than the resort developer.
Reselling timeshares is a sought-after practice since many owners prefer to recoup their investments. Alas, it has not always been a simple process. The inception of the internet played a crucial role in expediting this business model. With easy access to various online marketplaces, timeshare resale companies became just as alluring as the resorts themselves.
Timeshare resales can take place on the typical online marketplaces of Craigslist, eBay, and Facebook. Or, they can be handled by industry-leading services like RedWeek and Timeshare Users Group (TUG). A resale company may be of assistance or help with every step, from marketing the timeshare to closing the transaction.
Venturing into the timeshare resale market can be advantageous for interested buyers and sellers. Discover a few examples below of why some folks even consider the aftermarket a superior route to handling timeshare ownership.
The primary benefit of buying a timeshare from a resale company is the ease of obtaining a desirable unit at a reduced price compared to the high costs of corporate resort brands. The resale market gets flooded with owners looking to get rid of their timeshare and is often willing to negotiate, sometimes a fraction of the original price.
Timeshare owners who have grown disinterested in retaining their ownership may also benefit from resale companies as they can provide an exit. The average timeshare company does not make it easy for an owner to cancel their agreement. Alas, owners can find resources in the resale market that advertises their unit on listings that receive thousands of views.
Another benefit for both buyers and sellers is that working with resale companies can take place from the comfort of one's home. As opposed to the conventional selling approach of resorts utilizing high-pressure sales tactics throughout lengthy presentations and tours, resale companies provide a more comfortable experience.
Despite their beneficial qualities, timeshare resale companies have drawbacks too. The resale market is not always a lucrative, easy, or safe option for buyers and sellers alike. Following are several examples of why to rethink the decision.
Contrary to what resort vendors may claim, timeshare properties lack value appreciation in the real estate market. Hence, the resale price can be lower than on the secondary market. On top of the minimal returns, some resale companies also charge advertising fees based on how long the listing for the timeshare is publicized.
While many resale timeshares have low asking prices, finding buyers is more challenging. It is common to take up to a year or more before a seller receives an offer. Buyers in the resale market are also impacted as timeshares abide by the right of first refusal clause, giving the resort the first chance to buy the property again. To protect the value of their product, many resort brands take advantage of this clause. Waiting for the best offer requires patience.
Not all timeshare resale companies are genuine. When dealing with the timeshare industry, be vigilant of potential fraudulent activity. Some so-called timeshare resellers prey on the distress of timeshare owners who seek assistance. For more information on how to avoid timeshare resale scams, click here.
Purchasers and vendors should be aware of the basic timeshare resale regulations. Buyers stand to profit from this market if they collaborate with a reputable business. On the contrary, if a seller wishes to part ways with their timeshare, having a thorough knowledge of timeshare resale law will ensure they do not become victims of fraud.
As a safeguard, many states have enacted statutes regarding timeshare resales. These rules most often pertain to agreement policies and false advertising. For example, misrepresenting services can result in penalties against a fraudulent resale company. These legal protections benefit buyers and sellers in the chance of encountering a scam.
As always, read the terms and conditions of an agreement before moving forward. Then, confirm that there are no contradictions between what was promised and what was delivered. Last, use secure and traceable payment methods such as an escrow account or a credit card in case of a dispute.
Find answers to a few frequently asked queries below.
Selling a timeshare is a matter of finding a trusted company with licensed real estate agents. After choosing the marketplace and listing the timeshare for sale, it becomes a time of awaiting offers. Some resale companies provide advertising resources to bring in interest and assist in closing the deal when an offer is made. Funds from both sides are often held in escrow until the transaction gets finalized.
Due to the challenges and risks of the aftermarket, consult with the developer that sold the timeshare. Some resorts offer exit solutions and deed-back programs or can refer to reliable companies.
To buy a timeshare resale, explore the many online marketplaces. Considering the multitude of reselling owners, the secondary market has plenty of options. Shop different resort brands, all types of ownership (i.e., weeks, points, etc.), and throughout an assortment of destinations. After placing an offer and the seller accepting, it must undergo the ROFR process before completing.
Buying from a resale company can be done from the comfort of one's residence. Alas, without face-to-face contact, this process can still be challenging. Consider contacting a timeshare advocacy group, self-help organization, or legal representative for further assistance.
Companies that have a strong reputation for running trusted and law-abiding businesses are the finest. Also, beware of the not-so-great enterprises that perform the bare minimum, and some even go as far as to take advantage of interested buyers or distressed sellers.
To find the most promising companies in this market and avoid potential scams, research every option. Seek out those with a reputable history in the resale industry and who have positive reviews from former clients.
Reselling a timeshare is not the only way of exiting such an agreement. If you have changed your mind about owning a timeshare, you may be eligible to exercise the right of rescission. Timeshare rescission periods are implemented by state laws, with most of them providing buyers three to fifteen days after purchasing to cancel their agreements.
After the cooling-off period expires, other alternatives for reselling include renting the timeshare, gifting it to a family member or friend, or donating it to charity. Still, finding a willing recipient is never a guarantee. The latest opportunity for disgruntled timeshare owners is employing a cancellation company. Such entities provide exit solutions to those deceived by the industry.
A prime example of a timeshare cancellation company is Wesley Financial Group, LLC ("WFG").* Instead of reselling timeshares for little to no profit or placing the burden on someone else, this company aims to terminate the agreements altogether.
Established by industry pioneer Chuck McDowell, WFG assists those misled into purchasing a timeshare. With a history of terminating 30,000 timeshares and counting, WFG has gained authority within its decade of experience.
If you have issues with timeshare resale companies, consider contacting WFG about their professional termination services. You could be next to achieve financial freedom.