Once you understand the true cost of vacation ownership — with its hefty maintenance fees, special assessments, and other expenses — you may consider timeshare resale or exploring ways to exit your timeshare agreement.
You are not alone, one study determined that 85% of timeshare owners wish they had never made the purchase.
But many owners who try to sell timeshares as a way out, find unique challenges. Sooner or later, they come to the same questions about timeshare resale: Should you use a broker or go direct? Is this even the best way to get rid of a timeshare?
Given the lack of any real timeshare resale market (as timeshare worth usually hovers around zero), these are fair questions. You can also rest assured that timeshare developers will have something to say about your resale plan, as many timeshare contracts are written to forbid owners from listing their timeshares for sale or even as short-term rentals without going through them.
But despite the obstacles and drawbacks, there are a few instances where a timeshare sale might be able to work. In this article, Centerstone Group will answer some of the more common questions about timeshare resales, including whether you should use a broker or agent, what kind of a commission they might charge for a sale, and whether you can sell your timeshare by yourself.
A broker is a licensed real estate agent (or agency) who specializes in timeshare resale and can assist you with the process of selling your timeshare independently. When hiring a broker, ensure that they’re a licensed Realtor.
There are two different ways to work with a broker:
Many timeshare developers will require the second option so they remain in control of the buying and selling of their timeshare units.
If you want to attempt to sell your timeshare, you can choose to use an independent broker, go through your timeshare company’s resale program, or try the “for sale by owner” route. Let’s take a look at the pros and cons of each option.
An independent broker will have the experience and knowledge to give you a realistic picture of your chances of a successful sale. A Realtor will know how to assess the market. For example, maybe they’ll discover you’re one of a dozen people trying to sell timeshares around the same part of Florida (Orange Lake Holiday Inn, for example) and that you’re probably not going to succeed.
Realtors can also put you in the best position possible to complete a sale.
They understand the secondary markets in which they work, and they can use their considerable skill and training to give you the best shot possible.
Any agent worth their license will also tell you that you need to know that selling a timeshare is extremely tough.
For one thing, while you might have a deeded timeshare with a legal real estate interest (e.g., timeshare weeks at a certain resort), the chances are just as good or better that your timeshare might actually be a vacation club with a “points” system.
The timeshare resale process is hard enough on its own. If what you have is points from Marriott Vacation Club, Disney, Hilton, or another timeshare resort company, your work may be even tougher because someone who wants to buy timeshare points will likely just go to the vacation club and do it directly. An expert can properly advise you what you need to do.
But keep in mind, Realtors don’t work pro bono. They will charge a commission for their time (see below regarding the amount of that commission). Also, realize that there will be extra costs involved in getting your timeshare sold, including closing fees and more.
Reselling a timeshare is a very difficult task (and one that most people are successful at). If you try to handle the process on your own, you risk making a mistake — or perhaps a completely invalid sale. And if you violate a term of your contract, you could be making more headaches for yourself.
Sometimes, your timeshare developer might work with you and recommend its own Realtor for the sale. For example, Hilton Grand Vacations Club and Club Wyndham both have arrangements with specific brokers to assist you in a resale of their properties.
But think long and hard before using this option. As too many of our customers have experienced, developer-sponsored resale programs do not work, and the fees are exorbitant. After all, timeshare companies have their own inventory of timeshare units they’re trying to sell. Why would they want to help you get out of a one-sided contract that they’re profiting from?
In reality, these programs are designed to keep you current on your fees while they claim to look for a buyer that will never come. We frequently get calls from timeshare owners that have waited months and months for these programs to give them results, only to realize they were tricked again.
Trying to resell your timeshare without a broker can certainly save you on commission. But the advantages really end there.
In reality, whether you’re using a broker or listing a timeshare on your own, there isn’t really a market for timeshare resales. Just take a look at timeshare listings on eBay or Craigslist. You’ll see plenty for sale for $1. People can’t even give them away. Even the Timeshare Users Group (TUG) resale marketplace has a page for free timeshare resales.
And throughout the time you’re waiting for a buyer to bite, you’ll be paying the ever-increasing annual maintenance fees, special assessments, and more to your timeshare developer.
Timeshare brokers are more expensive than other kinds. A Realtor that you hire to sell your house might charge you 5%-6% of the total transaction. Timeshare Realtors will charge a few points more. The reason is that timeshares can’t sell for as much as typical real estate, and they require a lot more work.
If you’ve been assigned a broker through your developer’s timeshare resale program, they likely advertise no upfront fees. But as we’ve discussed, these programs don’t often result in a successful resale. So while you may never pay a commission, you will instead continue to pay maintenance fees, special assessments, and more while you remain tied to your unwanted timeshare.
Finally, if you think you can use a timeshare resale company to avoid paying a commission, think again. These companies, which advertise an upfront fee instead of a commission, are often run by scammers. Generally speaking, you should never deal with a timeshare seller that does not work on commission.
Need help navigating the resale market? Speak with our timeshare experts now.
While there are timeshare resale marketplaces online (such as the TUG marketplace we mentioned above), there are no platforms on which you can sell your timeshare and make a profit. As we’ve discussed there is no timeshare resale market and most people are struggling to offload their timeshare, even for free. If there is any money to be made on your timeshare at all, you will not make that money with a listing on a direct sales or auction site.
Also, unless you follow your state’s rules for a real estate sale, these sales might not even be valid or enforceable anyway. In the best case, you will have only wasted a large chunk of time. In the worst case, you will have also thrown away a lot of money.
If you have a deeded timeshare in a special, highly desirable location, you might be able to list and sell it. Timeshare buyers typically want the perfect timeshare in places like the island of Maui in Hawaii, not Orlando or Las Vegas. But in the vast majority of cases, a resale won’t make you any money at all and isn’t the best way to exit a timeshare.
That is why Centerstone Group offers many other options for getting rid of your timeshare. We can help you with a transfer to someone on our waiting list. If we need to, we can use our proprietary pressure campaign to force your timeshare developer to let you out of your contract. Or, as a last resort, we can get you legal help if you need it.
We have an A+ rating with the Better Business Bureau (BBB), and we have a customer rating of 4.81-out-of-5 stars on that website. We have helped thousands of timeshare owners navigate resale challenges and successfully exit their timeshares. We can help you too.
Contact us today for a free consultation and case evaluation.
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