Owning a timeshare can be costly, especially with stories of how the timeshare industry is experiencing low demand, low resale value, and more fraudulent activities have arisen.
People are also beginning to realize that it’s more like a liability than an investment, considering that yearly maintenance fees sum up to more than the unit’s cost.
And all these factors make selling a timeshare harder than before, causing owners to echo questions like, “Is it possible to sell it?” And how?
If you’re on this end, read this article to learn more about how to sell a timeshare legally.
Selling off your vacation ownership might be a good financial decision. But if you don’t think so, here are four reasons to consider selling it:
- Financial relief: Selling a timeshare can provide much-needed financial relief, especially if you’re facing unexpected expenses or changes in circumstances.
- Lifestyle changes: If your lifestyle has changed and you can’t use your timeshare, selling it can free up your time and resources for other things.
- Travel flexibility: Selling your timeshare can give you the freedom to travel to new destinations and try out new experiences rather than visiting the same vacation spot year after year.
- Relief from maintenance fees: Timeshares come with ongoing maintenance fees that can add up over time. By selling your timeshare, you can relieve yourself of these fees and use the money for other expenses.
While there are benefits to selling a timeshare, it’s also essential to consider the potential drawbacks. =’Here are four reasons why you might not want to sell your timeshare:
- Low resale value: Currently, timeshares have a low value on the resale market, so you may not get back what you paid for them.
- Emotional attachment: If you have a sentimental attachment to your timeshare, it may be hard to let it go, even if you no longer use it.
- Difficulty in selling: Selling can be challenging due to declining demand, a negative reputation, and legal complexities.
- Loss of vacation spot: If you enjoy visiting your timeshare and have made memories there, selling it may mean losing that ‘special’ vacation spot.
If you’re considering selling your timeshare, here are some essential things you’ll need to have:
- Ownership documents: Get all the necessary paperwork to prove you own the timeshare, including the deed and other legal documents.
- Maintenance fee information: Potential buyers will want to know the ongoing timeshare maintenance fees, so have this information on hand.
- Property information: Document detailed information about the timeshare property, including its location, amenities, and any rules and regulations related to ownership.
- Asking price: Decide on a fair asking price for your timeshare based on current market conditions, the property’s location, and the unit size.
Some other things you might need or want include:
- Timeshare broker or agent: Consider working with a licensed timeshare broker or agent who can help you navigate the legal and financial complexities of selling a timeshare. But stay alert since there are many fraudsters in this sector.
- Marketing materials: If you’re selling the timeshare yourself, create marketing materials such as ads and listings to highlight the benefits of owning the property.
- Negotiation skills: Be prepared to negotiate with potential buyers on the price, terms, and sales conditions.
These specialized companies help you sell your timeshare units by providing marketing services, legal assistance, and transaction support.
Disney Vacation Club and Diamond Resort International are some of the most popular timeshare resale companies.
What Makes This Option Great
Timeshare resale companies have the expertise and knowledge to ensure a smooth and successful transaction.
They can provide valuable guidance, marketing resources, and legal support to help you navigate the process.
You can benefit from their extensive network and increase your chances of finding the right buyer.
- Fees/Commission: Resale companies usually charge a commission or a flat fee for their services. Commission rates can vary between 8% and 30% of the sale price, while flat fees can range from $1000 to $5000.
- Payment Methods: You can receive payments through bank transfers and checks.
2. Online Classifieds and Auction Sites
In today’s world, social selling and sales through online communities are becoming things to consider.
Online platforms like Craigslist, Facebook Marketplace, and eBay can be the best for timeshare sales.
What Makes This Option Great
Online platforms and auction sites offer a broad audience, low cost, user-friendliness, and control over the selling process.
Listing your timeshare on these platforms can help you reach more potential buyers and have more control over the selling process.
Compared to timeshare resale companies, using Facebook and Craigslist is often much more affordable (or even free).
- Fees/Commission: There are usually no fees for listing your timeshare on these platforms. However, you might pay to advertise your listing or use their payment services.
- Payment Methods: Payment methods may vary depending on the platform, but most sites offer secure options like PayPal or credit cards.
3. Real Estate Brokers
Some real estate brokers specialize in timeshare sales and can help you find potential buyers.
They’re knowledgeable about the timeshare market and can set a fair price for your unit.
What Makes This Option Great
With their expertise in real estate, including timeshare transactions, they possess a vast network of potential buyers and marketing resources to promote and attract buyers for your timeshare listing.
They can help you get the best possible price for your timeshare resort while meeting all legal requirements.
- Fees/Commission: Real estate brokers usually charge between 6% and 10% of the sale price.
- Payment Methods: The broker handles the payment process, and you receive payment once the sale is complete.
Here are three solid but easy steps to selling your timeshare.
When people buy, they pay a cash equivalent for the value they believe the item to have. Knowing the value of your timeshare can help you set a fair price and attract potential buyers.
It can also help you cap how much you can sell your unit for based on its supposed value, so you don’t lose much.
Since doing this is crucial, you’ll need to invest some time in research. Research the resale prices of similar timeshares in your location and with similar amenities. You can do this using online timeshare resale platforms or, better yet, consult a real estate agent to get an accurate estimate.
If you’re doing things on your own, thinking like a realtor will help since you’re trying to sell a property (or something close to one). In this case, you’ll consider factors such as the size of your unit, its location within the resort, its amenities, and any other unique features that can boost its value.
A unit with a better location, better views, or more amenities can typically have a higher resale value. The goal is to highlight the shiny features of your timeshare that appeal to a buyer.
Any upgrades or renovations you make to your timeshare unit can also increase its resale value. So, ensure you keep records of them, including the cost, to present to potential buyers.
Tip: Remember that humans buy with emotions, and only the most convincing people make sales.
Step 2: Gather All Relevant Documentation
Before selling your timeshare, put all the necessary documentation in order.
Here’s what you’ll need:
- The deed to your timeshare legally proves that you own the unit.
- Your timeshare’s annual maintenance fees and taxes.
- Any loan or mortgage documents related to your timeshare.
- Records of any upgrades or renovations you’ve made to your unit.
- Your timeshare’s rental history, if applicable.
You don’t have to be a pro marketer to market your timeshare, but you’ll need some skills and a platform.
For secondary markets to sell your timeshare, we recommend RedWeek, SellMyTimeshareNow, and Timeshare Users Group, in addition to our previous suggestions.
Some skills you’ll need might include photo and video editing, a little copywriting strength, and knowledge of social media ads.
While these aren’t compulsory, they can improve your chances of closing a deal sooner than expected.
This is because you’ll need to take photos and videos of your unit and write a compelling description to showcase its best features.
However, all these might not be necessary when you hire a marketer or broker.
Besides where to sell your timeshare and what you’ll need, here are a few considerations.
Unfortunately, there are many scams associated with timeshare sales.
The most famous instances are fraudulent brokers claiming they can help you cancel your timeshare contract in no time but requesting fat deposits before starting.
Avoid these scammers by verifying every broker or agent before hiring them. And check for reviews from their past clients and ask for relevant licenses.
Flee from offers that seem too good to be true, and never pay any upfront fees or costs to a potential agent or buyer.
2. Consider Working With a Professional
If you’re unsure about the selling process or don’t have the time to handle it, consider working with a professional timeshare exit company or real estate agent.
While you may pay fees associated with their services, you’ll most likely enjoy a smooth and successful sale.
3. Understand the Costs
In addition to any fees associated with selling your timeshare ownership, you may also be responsible for maintenance fees, property taxes, and other costs.
Factor these expenses into your decision to sell and your asking price.
4. Be Prepared to Negotiate
Selling a timeshare can be competitive, so prepare to negotiate with potential buyers.
Consider setting a minimum price and learning to walk away if you’re not happy with the offers you receive.
Frequently Asked Questions
Here are answers to some questions we didn’t discuss in the previous sections.
You can sell your timeshare back to your resort developer if they have a buyback program.
Although, there may be certain conditions and restrictions to meet to qualify. For example, you may need to own the timeshare for a stated duration before you can participate in the program.
You can’t just walk away from a timeshare. Typically, timeshare agreements are legally binding contracts that require paying maintenance fees and other costs for a specific period, often several years.
If you can’t sell or transfer your timeshare and decide to stop paying, the timeshare company may take legal action against you. This can harm your credit score and lead to other financial consequences.
Similar Tutorials to Check Out
Check out some other interesting ways to make money selling.
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- How to sell NFTs on OpenSea: NFTs are bringing in huge revenue these days. Learn how to make money with them.
Wrapping Up
If having a timeshare is becoming burdensome, maybe selling it isn’t a bad idea.
While the process can be complicated, you can get help from a professional real estate broker or timeshare resale company.
However, ensure that you’re seeking help from the correct sources.
Tell us about your experiences selling your timeshare in the comment section below. Were you able to sell it?
