If you are in the position where you need or want to sell your timeshare, there are different methods which can be used. Realize first off that selling your week may take a year or more! It certainly can happen sooner, but you should know that it may take awhile.
A rough estimate of the value of your week on the resale market would be to figure 50 - 60% of the developer's current sales price. If you need to sell your week quicker, drop the price. The resale market is still emerging, and it is definitely a buyer's market. The speed of the sale depends upon the asking price. Once a prospective buyer becomes aware of the resale market, he or she will normally shop around, in contrast to people who purchase directly from the resort.
For a current estimate of your timeshare's value, check the listings on the internet. You can also contact your resort to see what the current price of a week would be. Keep in mind that the resort will quote you the retail sales price, and you should price you week below that figure if you expect to sell in a reasonable length of time.
You can attempt to sell your week yourself through classified advertisements, such as the free classified ads on Timeshares247.com. Check with your resort, as they may have an in-house resale program. For your convenience, we maintain a list of timeshare advertising websites and resale brokers.
Many people choose to list their week with a resale company. You should use good judgement when selecting a resale firm. Most resale companies are reputable; but some are not! Many of the legitimate resale brokers have gotten away from charging a $300 or $400 listing fee. One ploy used by some unscrupulous companies to get listing fees is to tell prospects over the phone that "we have a buyer ready to close on the purchase of your week...all we need is your credit card number to enter your listing." Unfortunately, the sale rarely, if ever, closes. Like most things, if it sounds too good to be true, it probably is!
Any company wanting to collect a substantial listing feel will also likely tell you anything that it thinks you would like to hear regarding the price you can get for your week.
Regardless of which resale company you choose, take the following precautions:
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Investigate the company's background and its history of resale success.
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Ask what methods the company will use to advertise and promote your property.
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Find out how you can get regular updates on the status of your timeshare.
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Be leery of companies offering gimmicks, such as "guaranteed purchasers wanting to buy your week" to get your listing fee.
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If a resale company solicits your listing by telephone, resist any pressure to make an immediate decision.
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Ask the solicitor to put details of the offer in writing and send the information the the mail. Obtain a written contract before making any payments.
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After you receive the contract, be sure to review the terms and conditions, including:
How long the contract is in effect
Exactly what services the company will provide
Who is responsible for documenting and closing the sale
Ask if the company holds a real estate license in its home state. Check with the state real estate commission to verify the information. Do not expect immediate results. Reselling property is not an overnight process. Despite what some resale people may tell you, there are no guarantees that your vacation interest can be resold or rented at a particular price, or within a certain period of time.
If you encounter a problem, report it to the Better Business Bureau, state and local real estate commissions, consumer protection agencies, consumer reporters and the state attorney general.
Broker Mary Englund of Oregon wrote to add another word of caution:
"In some states, Oregon is one of them, it is required by law to be licensed in that state to solicit listings from residents, and to sell timeshares in the state. this is not true in many states. Having a license in the home state as you show isn't enough in Oregon. Despite that, many companies are soliciting timeshare listings here, unlicensed in Oregon. It's only a matter of time before the real estate agency catches up with them.
Companies that are unfamiliar with this requirement will also be unfamiliar with other important issues that a seller or buyer faces in timeshare resales."
Broker Mario Collura of Tri-West Real Estate adds concerning the issue of resales in California:
"Although advanced fees are permitted in California, all advance fee materials must be approved by the Department of Real Estate (DRE). In order for a broker to collect an advance fee, they must have a written agreement with the owner, outlining and obligating the broker to perform all the services promised.
IF YOU LIVE IN CALIFORNIA OR YOUR RESORT IS IN CALIFORNIA MAKE SURE YOUR ADVANCE FEE AGREEMENT HAS BEEN APPROVED BY THE CALIFORNIA D.R.E.
The following essential elements are required for approval:
1. Agreement must be in contract form with a line for both broker and owner to sign and date.
2. Agreement must show the specific fee due and when it is payable.
3. The fee must be prorated according to the services promised and a corresponding refund policy must be contained in the agreement.
4. A time frame of when and what services will be performed and the fee earned must also be included.
5. All fees collected must be placed into a trust account on behalf of the owner.
6. Broker must use all of funds for the benefit of the owner and make payments only for services promised.
7. Broker must provide the owner with verified accountings until the services have been completed.
The issue of resales is currently the biggest problem facing the vacation ownership industry. Resort developers have a natural conflict with handling resales for their owners while they are still in the process of selling their initial inventory. Once they are done selling, it is usually not worth their time or effort to operate a resale program. The legalities and complexities of establishing a resale program also prevent many smaller resorts from being able to offer these services to their owners.
That situation does not help the conservatively estimated 300,000 owners in the U.S. who currently want to sell! The marketing methods by which timeshare has always been sold are changing. With the entry of hospitality giants such as Disney, Marriott, Hilton, and Embassy Suites into vacation ownership, it is recognized that consumers want a customized vacation product at an affordable price. Utilizing the Internet, resort developers can now refer their owners who need to sell to a centralized marketplace, and at the same time attract prospective owners to visit their property.
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