If your timeshare has worn out its welcome and you're ready to part ways, your first thought is probably to sell it. That's common, as the market is more prominent today than ever before. Yet, research shows that reselling timeshares may not be prudent. To avoid resale scams, owners must understand how to sell a timeshare or know what other exit options are available. This article covers both.
Timeshare resales are timeshares sold by existing owners instead of the original property developers. And, there are numerous timeshare resellers.
When buyers grow dissatisfied with their timeshare ownership, they have limited exit options. With short rescission periods and a lack of help from resort developers, timeshare purchases can feel impossible to escape from at times. Thus, many owners turn to resell their property when all else fails.
However, there's an issue with reselling timeshares. Many are worthless. A timeshare’s value depreciates the moment it’s purchased. Who wants to buy that? That leads to the next issue—the lack of potential buyers in the secondary market. People just aren't interested in timeshares, resale or not. The sole difference between resellers and resorts is in staffing and budgets to hide these blemishes from potential buyers.
Reselling a timeshare can be a grueling process that gets expensive. Not only that but there's always the risk of resale scams. So follow this three-step approach:
First things first, get the original paperwork from your timeshare purchase agreement. Do this early so you understand what you purchased years ago and what you're selling today. For instance, when reselling a timeshare, you'll need some information for the listing.
The most crucial aspect is whether the agreement is "deeded" or "right-to-use." With right-to-use timeshares, you may have limitations on your ability to resell, so double-check with the property developers beforehand. With deeded timeshares, make sure you have a physical copy of the deed before proceeding.
Study the timeshare agreement and all components within. Below are a few examples of the details to list it for sale:
Next is figuring out how much the timeshare property is worth. Don't expect much. Keep expectations realistic. Timeshares don't have much investment quality. The chances of regaining what you paid are slim, and many resellers are content to give their timeshare away for pennies on the dollar.
Now, scout out the resale market to get an idea of listing prices. Look for timeshare units for sale similar in size and description to yours. You can start by looking at Craigslist, eBay, Timeshare Users Group, and other sites in the online marketplace sector.
A critical factor in a timeshare's resale value is if the expenses are not overdue. Many timeshare buyers take out a mortgage for the initial purchase. If the loan is still being paid off, the timeshare is listed as encumbered, making reselling tougher. And that's not all. Timeshare ownership often includes annual maintenance fees, assessment costs, property taxes, etc. Ensure all expenses are paid off should anyone consider buying your timeshare.
The last step is to list the timeshare for sale in the secondary market. You can do this by listing it on online marketplaces, or hiring a professional. The timeshare resale industry can be complex to navigate through if you're not familiar with these types of vacation properties. Getting a little help never hurts.
One option is to contact a real estate agent. But not just any agent. Seek real estate agents with credible experience in the industry. Ask about their background in selling timeshares and how many they've sold. Ideally, if you prefer a real estate agent, select one specializing in timeshares, although that can be tough.
Another route is working with a timeshare listing company. These companies will list and promote the timeshare property for sale. Albeit, not all of these resale companies are who they say they are. Before agreeing to work with any company, do your research to ensure it's a prudent decision.
To sell your timeshare is not the only way to get rid of it. As more timeshare owners voice their frustrations with the selling process, other exit solutions develop. For timeshare owners who are apprehensive about reselling, below are a few alternative exit options:
Some buyers decide to retain ownership and rent out their timeshare. Renting out your timeshare can subsidize your annual fees. Those same agents and listing companies that sell timeshares offer renting options too. Alas, renting timeshares has not proven a profitable investment quite yet.
The resale process for timeshares can be tiresome. Sometimes, you just want to give the timeshare away! As long as you meet the requirements, one option is to donate it to a charity. Timeshare donations have become more common as owners realize how little a return reselling gets them. Donating a timeshare can be ideal if you don't want the headache of reselling but want to make a positive change instead.
It's not uncommon for timeshare owners to think they can just ignore their vacation ownership and the expenses that come with it. Stopping your timeshare payments can lead to financial issues. At a minimum, expect damage to your credit score. Yet, you also risk facing collection agencies or even a foreclosure. Walking away from a timeshare, although tempting, has its consequences.
Timeshare owners who never wanted to be in such an unfortunate position in the first place may have another exit option in the form of timeshare cancellation companies. These companies assist owners who were misled or deceived into purchases. They strategize and negotiate your cancellation. Hiring a credible cancellation company as a timeshare exit solution is becoming popular.
Wesley Financial Group, LLC (WFG)* is one of these timeshare cancellation companies that's making a difference. Since 2011, this company has canceled more than 16,000 timeshares for owners led astray by corrupt sales representatives. As a leader in the timeshare exit industry, WFG has proven itself as a helping hand worth reaching out to. To learn more about their timeshare termination services, schedule a free consultation today!
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.