Selling a Timeshare – Top 5 Mistakes
Many of the millions of timeshare owners worldwide are frustrated with their timeshare and now want out of it. When you bought your timeshare, you were told that one of the benefits of ownership is that you could sell it at any time without having to have a real estate license. What the salesperson left out is how difficult it would be.
Today there are thousands of timeshare resale companies aggressively promoting their services via the Internet, mail and phone, many of which have the only goal of separating you from your hard-earned money – not to sell your timeshare. The 10 tips below will help you determine if the timeshare resale company you’re considering is one of them.
(1) Paying Large Upfront Fees
If a resale company asks you to pay any upfront fee of more than $100 to market your timeshare, don’t walk, but run away. This is the sure sign of a rip-off. They’ll tell you the money is to be used for a listing, appraisal or advertising fee. Some really disreputable companies will tell you they just so happen to already have a buyer and just need $500 to open escrow.
Regardless of the story given as to why you have to pay money upfront, companies that charge upfront fees are far more interested in collecting fees than selling your timeshare. The most these companies do to actually sell your timeshare is to put it on their website along with hundreds of others. And there it will sit unsold for months, if not years while your calls are not answered.
(2) Listing Your Timeshare Too High
Most timeshares sell for only 10-40% of their original purchase price. Because a lot of timeshare is sold by telling the consumer that it will increase in value, the timeshare owner is reluctant to price it for less. To get a feel for what your timeshare is really worth on the secondary market, check with several different companies to see if they have listings in your resort. It’s not unusual that the company you are going to use has your exact same timeshare for sale. If so, you need to price your timeshare below the lowest comparable timeshare in order for it to sell. You should also ask the agent how long that listing has been for sale to determine if it was priced right in the first place.
(3) Not Researching the Company’s Credentials
Finding a well-established resale company that doesn’t charge a large upfront fee will be your biggest challenge. The best companies will not only be listed with the Better Business Bureau, but also should have a Real Estate Broker license.
(4) Trying to Sell your Timeshare Before It’s Paid Off
Depending on how much money you owe you may not be able to sell it. If you still owe $10,000 on your timeshare and it will only sell for $3,000, you’ll have to pay off the $10,000 first. Most timeshare mortgage notes are non-transferable.
The disreputable resale companies, after finding out you still owe $10,000 on your timeshare will tell you they will list it for $15,000 just to get a large listing fee. And there it will sit never to be sold.
(5) Signing an Exclusive Listing with One Company
Never give an exclusive listing to one company to sell your timeshare. An exclusive listing means the company will be paid their commission, typically 10-15%, no matter who sells it. Even if you sell it to your neighbor or co-worker you will owe the listing company their commission. And it effectively prevents you from listing it with multiple other resale companies since they wouldn’t get paid if they did sell it.
Always sign an “open listing” giving you or anyone else the right to sell your timeshare. This means you will only pay the listing company a commission if they sell it. If you can find more than one reputable resale company then sign an open listing with all of them.
Because of the economy, the timeshare resale market, which has never been robust in the first place, is becoming flooded with weeks of people desperate to get out from under their maintenance fees-and this is driving down prices.
In order to sell you’re going to need to be realistic about pricing of your timeshare.
In addition, do your research before listing your timeshare with any resale company to determine if they are reputable.
Never sign an Exclusive Listing agreement with a company as this will limit your exposure. Also, if you receive an unsolicited call from a timeshare resale company offering to sell or rent your timeshare, hang up.
If you’re still paying on your timeshare, you’re not likely going to be able to sell it unless you pay it off in full since the note is non-transferable.
If you find yourself in the position of having to keep your timeshare then you need to learn how to use it effectively rather than letting it go to waste. All timeshares can be exchanged to other desirable locations once you learn the insider’s secrets of how the exchange system really works.
Sophia D’Souza is a Content Marketer, Blogger and Story Teller at Exit Timeshare. She enjoys connecting with people, keeping herself updated with the latest in the field of business, technology, travel & fashion and spending quality time with her family.
Sophia D’Souza is a Content Marketer, Blogger and Story Teller at Dricki. She enjoys connecting with people, keeping herself updated with the latest in the field of business, technology, travel & fashion and spending quality time with her family.