Read These Tips Before You Sell Your Timeshare
Many people would agree that reselling a timeshare is not as easy as buying one.
If you think about it, timeshare promotions include a lot of gifts and rewards just for watching the presentation. A lot of cost goes in to campaigns to invite you to see a presentation. This is all in an effort to get you to buy a unit. If you are selling, you need to compete with that type of onslaught to potential buyers.
This has to make you wonder if selling one that you have purchased is as easy as buying one. The fact of the matter is that it is difficult to resell your ownership. That is why it is wise to not think of this only for investment purposes. Unlike real estate, selling is difficult and you will often sell for a loss. It is an investment in life and vacations, but not necessarily financial returns.
True that many people buy timeshare with the intention of vacationing only but certain unforeseen circumstances may force some timeshare owners to resale their timeshare unit.
So this article is exclusively for those people and may also benefit others also who are contemplating selling their timeshares due to reasons such as change of taste, family has grown and you no longer want to go to the same location etc.
1. Check with the timeshare developer who sold you the timeshare.
Some developers offer buyers a buyback option. Some developers also offer resell assistance as well. If that is not the case, they may also point you to an associated licensed broker that can help handle resells.
2. You have to be realistic in your expectations.
Do not expect wonders. It is a bitter truth that timeshare properties do sell at less than their original price. Not only that, it may be difficult to resale as well especially if it is in a not so popular destination, is a small unit for example a studio and if the time of use is in an off season. It might be a challenging task to sell a timeshare like the one discussed above. But in case of a property which is located in popular vacation destinations, is reasonably big and offers usage during peak season might sell easily. But again even if the property sells it might sell at 30-50% less than its original price. So be prepared mentally about that, think that it is like your car which depreciates with each passing year.
3. Be creative and consistent in using resources with ready prospects.
Besides your timeshare agents, check out both real estate agents and travel agents. Timeshare ownership would be interesting to both those who have seen value in purchasing real estate as well as those who like to travel. Just be ready to pay a finder’s fee or commission. And if these agents do not ask for one, be nice and offer one.
4. Find Buyers On Your Own Online.
With the internet it is getting much easier to reach many people. Right off the top of my head Craigslist and Ebay are two could reach a lot of people with. But each city has its own special paper or online site that will advertise cheaply. In Southern California there’s the Penny Saver and Recycler. You can also reach major metropolitan newspapers online and post ads as well. And finally there are many online classified ads sites as well.
5. Reconsider keeping your property and trying a few alternatives for the weeks you miss your vacation.
Because resale value is so low, it may be worth it financially to try to keep it and do something else with your timeshare for the years you do not use it. For example, you can rent it out every year. For renting it out you may get a lot closer to earning back your purchase price. Another example is donating it each year you don’t use it and see if that will allow you a nice tax write-off (consult your accountant!).
I hope this has been helpful for you. After reading this you may find it a better option to rent your timeshare each year than to sell it. Either way whether you keep your timeshare or you sell your timeshare, I wish you luck.