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How To Sell Your Timeshare
How To Sell A Timeshare In Today's Market
When selling a timeshare, all fees must come out of escrow, including but not limited to; closing costs, marketing costs, and the individual's commission. This process will eliminate the risk of paying any money during the process without results rendered.
We have established relationships with brokers that are willing to sell your timeshare without paying upfront fees. Brokers willing to take commission once the timeshare sells incentivize them to earn their commission.
Whereas a timeshare resale company like sell my timeshare now.com requires upfront fees. A resale company like sell my timeshare now.com will collect their "marketing" expense to sell your timeshare. If your timeshare does not sell, they have "rendered" services as you paid sell my timeshare now.com a marketing expense.
Technically, they have done so.
What Is The Best Way To Market My Timeshare For Sale?
You may ask yourself, "If these resale companies charge upfront fees, what is the best way market my timeshare for sale on my own?"
Brokers, on average, charge 25%-30% commission for their services. Granted, these brokers are willing to take on the risk of paying the marketing expense to promote your timeshare. Although the broker recovers the marketing expense from the proceeds from an escrow account, the time the brokers spend between the seller and the buyer is significant.
If you are not interested in paying a commission, you can always try the following:
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Use Facebook ADS.
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Create a video and use it on social media.
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Use stock photos from the internet and promote your timeshare on social media.
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Ask friends and family if they'd like to buy a timeshare.
We want to inform you; that you can expect $2,000 to $2,500 in closing fees ranging from $300-$500 to a title agency. There's $500 to $1,000 in resort transfer fees and $1,500-$2,000 for timeshare lawyers to produce a purchase agreement between the seller and buyer.
Using Facebook ADS can be expensive. You can expect to spend between $500 to $1,000 before your timeshare sells. You will have to deal with phone calls, emails, and the potential buyer to address any questions or concerns.
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Timeshare Developer Has The Right Of First Refusal
Once you find a buyer, you need to request an estoppel letter to produce documentation to the buyer that your timeshare is Free and Clear of any owed balances. The estoppel letter will also identify what your ownership will provide in terms of rooms, week or point system, home resort, and other factors.
Unbeknownst to many timeshare owners, timeshare developers have the right to "refuse" the buyer based on their qualification process, such as:
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Credit History
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Income
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Criminal History
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Timeshare Ownership History
Suppose the timeshare developer does not approve the buyer; they have the right to deny the buyer, and the current timeshare owner would need to find another buyer.
This qualification request is part of the purchase agreement under the "Right of First Refusal section."
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How Does The Buyer Pay You?
Timeshares are not tangible property. For this reason, banks will not finance a timeshare. If the borrower defaults, the bank has nothing to foreclose on as the timeshare developer owns the timeshare.
You own the "right to use the developer's factional interest of property."
You'll need to find a buyer with the cash, as it will be nearly impossible to find a lender unless the buyer takes out a personal loan to pay you.
Selling a timeshare at this point may not be the issue. Finding a buyer with the cash may be the real obstacle.
How To Sell Your Timeshare With A Limited Budget?
When the options mentioned above seem to require a lot of money and time, you may want to look at eBay.
eBay has thousands of timeshares listed as high as $80,000 to as little as $1.00 from people desperately looking to give away their timeshare to eliminate the ongoing increase of maintenance fees.
It is essential to be transparent. You may consider "giving away" your timeshare. It is always a good idea to be truthful and let the buyer know that even though you will give away your timeshare for a dollar, there will be specific facts to consider:
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Timeshares are exclusive memberships that will give the buyer the exclusive "right to use" the developer's fractional interest in the property.
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Maintenance fees have an average increase of 7% to 10% annually. In many cases, the maintenance fees double every 10 to 15 years.
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The purchase agreement will disclose that the maintenance fee is a contractual obligation for the lifetime of the membership unless it specifies a specific number of years when the membership ends.
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97% of timeshare contracts have a clause that obligates the member's heirs to inherit any financial obligations under the agreement, should the member pass away.
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There are $2,000 to $2,500 in closing fees that would have to be covered by the buyer using a closing company.
If you would like more information to learn how to sell a timeshare from one of our consultants, or if you would like to speak to a broker that will sell your timeshare without upfront fees, please do not hesitate to call our office for a free consultation.
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Process To Sell Timeshare On The Resale Market
Selling your timeshare on the resale market can be a great way to get rid of the unwanted timeshare and save money on maintenance fees. It's important to research the various options available for selling your timeshare.
One option is to list your timeshare with a reputable reseller willing to work on commission. They will handle all of the necessary paperwork and marketing and provide a free market analysis to help you determine the best selling price for your vacation ownership. Make sure the resale company is willing to take all their fees upon closing to mitigate your risk of losing money before your timeshare sells.
Another option is to sell timeshare directly to another party or use digital marketing. Promoting your timeshare can be done by listing your timeshare on eBay, Craigslist, Facebook, or online marketplace social media sites. You will have to handle the resale process—phone calls, emails, paperwork, and so on. One of the benefits of having a broker is they will handle all paperwork and communications for you.
Regardless of which option you choose, it's essential to have all the necessary documentation and information about your timeshare. Being prepared will help ensure a smooth and successful sale that allows you to sell your timeshare quickly and easily.
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How To Avoid Timeshare Scams In The Timeshare Resale Industry
The secondary market can be a great way to sell your timeshare. However, it is crucial to be aware of potential timeshare scams. When considering a resale company, there are a few key things to keep in mind that can help you avoid timeshare scams.
First, always remember that if a deal sounds too good to be true, it probably is. Suppose someone contacts you with a buyer for your timeshare. Be sure to research the timeshare resales company before making any decisions. Ask for a purchase agreement with a government ID from the buyer. If the buyer is confirmed, granting your request should not be declined.
Second, beware of anyone who asks for upfront fees or pressures you to make a decision immediately. Legitimate businesses will not require you to pay in advance or sign a contract before you have had the chance to do your research and make an informed decision.
Finally, always be sure to ask for references from previous clients. A reputable timeshare resale business will not hesitate to provide references if requested. These can be a great way to get insight into the quality of service you can expect.
Always contact the better business bureau to validate the company's history patterns, reviews, and complaints. If there's a pattern of people complaining monies have been paid before the sale, and the company is no longer returning calls, those are red flags.
By following these tips, you can make sure that you protect yourself from fraud and ensure a safe and positive experience selling your timeshare.
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What Is The Resale Value Of A Timeshare
Let's understand what we are selling first. By definition, timeshares are exclusive memberships with a point system or week system allowing your buyer to use a fractional interest of the developer's property once a year as long as the member pays the annual maintenance fees.
Since you are selling a membership to vacation ownership at a timeshare resort, the timeshare loses 80% to 90% of its value. A 20% evaluation is a fair market value for your timeshare.
Selling Timeshares And The Selling Process
Selling your timeshare can be a daunting task, but it can be a smooth and easy process with the proper preparation and knowledge. When selling your timeshare on the secondary market, there are a few things to keep in mind.
The first step is to determine the value of your timeshare. You can do this by researching selling timeshare and the closing process on the secondary market. Once you know what your timeshare is worth based on the formula previously presented, you can start promoting your vacation ownership and find potential buyers.
There are a few different ways to market your timeshare. You can list it on a timeshare resale website or classifieds site, or contact a timeshare resale broker and determine their sales commissions. Brokers are experienced in selling timeshares, the closing process, and can help you get the best price for your vacation ownership.
When you have found potential buyers, you will need to negotiate a sales price. Once you've agreed on a price, you will sign a sales contract and transfer ownership of the property. After the sale is complete, you will receive the proceeds from the sale minus sales commissions.
Selling your timeshare doesn't have to be complicated or stressful. You can successfully sell your property on the resale market with a bit of preparation and knowledge.
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Am I Better Of Using Timeshare Cancellation Companies?
There are a lot of timeshare cancellation companies out there that will promise to help you cancel your timeshare contract. However, it's important to know that these timeshare exit companies are scams. In fact, the Federal Trade Commission has issued a warning about timeshare resale and timeshare exit scams charging high upfront fees.
So, while many companies claim they can help you cancel your timeshare contract, it's always best to use a timeshare lawyer. Timeshare lawyers are familiar with the laws and regulations surrounding timeshares, and they can help you cancel your contract in the most legal and effective way possible.
In many cases, you are able to write off your purchase price as an abandoned secured property if your timeshare lawyer can help you successfully terminate your contract. We recommend speaking to your certified public accountant to verify any tax benefits or liabilities.
If you are looking for an ethical and legal way to terminate your timeshare obligations, please do not hesitate to contact our offices for a Free Consultation.