A friend invited you to a meeting at a hotel, and you agreed. When you asked your friend about the topic of the meeting, they told you they couldn’t tell you, but it will be worth your time to check it out. Fair enough. You arrive at the hotel, and there are five or six dozen chairs lined up in rows in front of a projector screen.
You find your friend and have a cup of coffee. Over the steaming hot brew, he mentions that you’re going to love the presentation, and he just started with this company a few weeks ago. He goes on to say how it’s an investment opportunity that you can’t afford to miss out on – and the alarm bells start ringing in your head.
Twenty minutes later, and you find yourself signing up for what you think is going to be a lifetime of affordable holidays. Why does everyone think timeshare is a scam, you wonder? A timeshare seems like a great deal to you. Partial ownership in a holiday home that you can visit during the year – it sounds like an affordable way to take the family on vacation.
A few years later, and you’re regretting the timeshare decision. You never get to go on holiday when you want, and it’s not as affordable as you thought. All you want to do is offload this disaster to anyone that’s buying.
Around 6.9-percent of American households, or 9.2-million families, have a timeshare at vacation homes and resorts. IF you want to sell your timeshare and avoid taking a loss, here are a few strategies you can use to maximize your profits of the sale.
Review Your Contract
When selling your timeshare, the first thing you need to do is dig up the original sales contract. If you don’t have the contract, then you’ll have to request a copy from the timeshare company. Without the contract, you have no idea of the terms of the agreement.
Once you locate a copy of the sales contract, take a look through the terms and conditions. Make sure that the agreement mentions the country and location of the resort or timeshare property. The contract should also specify the number of bedrooms, the size of the property, and amenities included with the timeshare.
Examine the contract and look to see if you have an actual deed over the property, or “a right to use agreement.” In most cases, you’ll have a right to use agreement, and the resort or developer will hold the deed. You’ll need to secure a copy of the deed before you list your timeshare for sale.
Think About Your Decision to Sell
Before you decide to sell up, think about how many points you have in your account. Timeshares used to operate by offering clients a week or a specified amount of days at a resort or vacation home at some stage of the year.
Nowadays, you get to accumulate points, and then use these points to access your vacation benefits like accommodation, meals, and entertainment. The timeshare industry experienced a revolution over the last two decades, and there are plenty of people utilizing this system for vacations.
If your account has points, make sure they allow for a roll-over at the end of each year. Also, ensure that your contract provides for the transfer of points to a new owner. The more points you have in your account, the more valuable your timeshare, and the more you can ask on the selling price.
Calculating the Value of Your Timeshare
When calculating the value of your timeshare, it’s vital that you have realistic expectations in mind for selling your timeshare. Regardless of what the salesperson told you when you signed up for the timeshare, it’s not an investment.
Investments are stores of value that appreciate over time. The value of a timeshare steadily declines over time, and the costs involved also add up at the end of every year. A timeshare is more similar to a car in terms of its value. It’s a depreciating asset, and you’ll never be able to recover the full purchase price that you paid at the time of sale.
As an owner that’s looking to offload their timeshare, if you get to change ownership without it costing you anything, you should consider that a win.
Is Your Account Up to Date?
Before you consider selling your timeshare, you need to know if your account is up to date. Make sure that you have no outstanding payments, or the timeshare group will not allow you to transfer ownership. Ensure that you take care of all your payments for HOA fees, maintenance, and any other costs.
What Are the Prices for other Similar Timeshares on the Market?
It’s time to get an idea of the realistic market value of your timeshare. You have a sense of a number at this stage, but it time to confirm if the market will offer you that figure. As we mentioned, it’s vital that you have realistic expectations in mind, and that you are willing to accept what the market is offering.
Look online at sites like Craigslist, eBay, and the Timeshare Users Group for other listings. Filter your results and look for the “sold” listings on these platforms. Compare the asking price along with the offering. Look for similar listings with the same square footage as your timeshare. Also, be on the lookout for amenities offered by the resort, as well.
Watch Out for Resale Companies
Avoid selling your timeshare to resale companies. Think of the situation as using a dealer to sell your used car. The dealer will always offer you less than what you can get for the vehicle if you sell it yourself. The same situation applies here.
The resale agent needs to make a profit on the deal, and they underpay for the value of your timeshare and then flip it at a profit. Sure, if you don’t want to go through the hassle of selling it yourself, and you’re willing to take a loss, then an agent can be handy.
Resale agents can also be scammers looking to take advantage of you. We always recommend that you avoid using resellers. However, if you have to use them, make sure you do your due diligence on the firm beforehand.
Selling The Timeshare Yourself
Selling your timeshare yourself is always the best option. You have control over the transaction, and there’s no way that anyone can defraud you with the paperwork. With a private sale, there are no agent commissions, and you get to set the sales price to the amount you want.
However, selling your timeshare yourself does not guarantee you of a sale. You’ll need to ensure that your offering is in line with other timeshares on the market, or it will never sell.
Do You Trust Your Listing Company?
Using a listing company to sell your timeshare is a popular option for private timeshare sellers. However, not all listing agents are equal. You need to complete due diligence on your listing agent before you hand them the right to sell your timeshare.
There are plenty of listings companies that also operate as scams. Be careful of any listing company before you engage in a transaction.
Can You Sell Your Timeshare Back to the Resort?
Go through your contract and look for any options that allow you to offload your timeshare back to the resort. Even if the contract doesn’t mention this stipulation, enquire with the resort anyway. Some resorts have started changing their policies to include timeshare buybacks.
The resort might have internal agents that flip your timeshare, or they might take it off your hands with no exchange of funds. However, you need to be careful when approaching a timeshare resort to sell. Some resorts have skilled salespeople that will convince you that you initially saw value in the timeshare.
However, your current deal might not be getting you the value you deserve out of your timeshare. As a result, the sales consultant offers to upgrade you to another resort with a better deal, in exchange for money or points. You might not believe it, but many people fall for this upselling technique, landing them right back where they started.
Wrapping Up – Investigate Timeshare Exit Companies
The best option we recommend for selling your timeshare as fast as possible, and for the best price – Is to use a timeshare exit company. These businesses operate by looking for ethical and legal ways to get you out of your timeshare contract.
When hiring a timeshare exit company, make sure that you hire a company that knows the local laws in your state and across the country. Make sure you avoid people that promise you that you’ll get out of the contract with a profit, and all you need to do is hand them your credit card details.
By using a timeshare exit company, you take the hassle out of selling your timeshare. It’s the most straightforward and cost-effective method of getting out of your timeshare contract.