To price your timeshare for sale correctly in the timeshare resale market, you need to understand how to evaluate the timeshare's fair market value.
This article will help you understand what costs are involved in selling your Timeshare and how to price your Timeshare in the resale market.
Many companies charge upfront fees to help you sell the Timeshare. You do not have to pay anyone to sell your Timeshare. Selling a Timeshare is the equivalent of doing your taxes. We can do our taxes, but it's a headache to do our taxes, which is why we elect to hire an accountant so they may deal with the headache of the work.
At the end of this article, you'll be able to make an informed decision and decide if you would like to sell the Timeshare on your own or if you would like our help.
Timeshare Resale Market
Selling a Timeshare on the resale market has many challenges. Pricing your Timeshare is the first challenge. Unfortunately, you will take a significant loss. It is impossible to ask someone to pay you what you paid for the Timeshare or what the Developer is currently selling timeshares.
People pay a premium because they're lured in with a gift to participate in a Timeshare presentation for 60-90min that ends up being a sales presentation for 3-6hrs. In the end, they present the Timeshare as a highly discounted price Only if you purchase Today, which leads you to pay the premium price. If you finance, you end up paying the original price due to the loan's high-interest rate.
Suppose you price your Timeshare at $10,000 or more. In that case, you will force the individual to research on the internet comparables only to realize that on many websites, including eBay, Timeshares are selling for as little as $100.
Nowadays, if someone wants to buy a Timeshare on the secondary market, it's not to purchase the specific Developer or the home location of the Timeshare.
People would buy a Timeshare for the trading power they receive with exchange companies such as RCI or Interval International, allowing the consumer the flexibility to travel to many destinations across the world. With this in mind, the right price point to sell your Timeshare would be $3,000-$5,000.
Closing Costs, Marketing, and Legal Fees
Now that you have a price point, let's discuss logistics. Regardless if you own a deeded week or point system, you need to hire a title agency to provide a warranty deed or transfer of ownership. Depending on the state your timeshare is assigned, title agencies charge $300-$500.
Your Timeshare Developer will charge you a transfer fee or preparation of transfer of ownership, which ranges from $250-$500. You also need to produce a new purchase agreement disclosing all terms, conditions, liabilities, timeshare resort policies, etc.
You can't provide someone with your purchase agreement because it has your signature. You need to hire a Timeshare Attorney to produce a new purchase agreement disclosing all terms and conditions to protect you as a private seller legally from any terms or liabilities not being disclosed to your buyer. Timeshare Attorneys on average charge $1,500-$2,000.
Now you have to focus on promoting your Timeshare for sale. We know that hiring a resale company is a waste of money and a scam. We have helped people promote their Timeshares by recommending them to a video production company to produce a video commercial that can be used on social media and attract a buyer.
A high-quality 60-second commercial typically costs $1,000-$1,500. At this point, you're at $1,000 in your pocket if you want to do the work on your own. If you hire a broker, the industry-standard commission is 30%. Suppose you can sell your Timeshare for $5,000. 30% commission is $1,500, which leaves you $500 in the negative. Selling your Timeshare at a significant loss is one option.
How To Get Out Of Timeshare Legally
The second option 95% of people out there do not know it exists. If you can convince the Timeshare Developer to allow you to surrender your ownership rights, the Developer will not reimburse you the monies you've paid for the Timeshare.
Suppose you can accomplish this on your own. You may be eligible to write off up to $30,000 of your purchase price as a loss on an Investment Property or an Abandoned Secured Property. If you paid $25,000 for your Timeshare, you might be eligible to write off that amount on your taxes as a loss. This option outweighs $1,000 in your pocket.
The challenge with this option is convincing the Timeshare Developer to allow you to cancel a legally binding contract. The fact that you may have an outstanding loan balance will severely affect this possibility. Even if your Timeshare loan is satisfied, you must pay maintenance fees as long as you own the Timeshare.
Timeshare Developers are known not to offer options to release you from your contract.
If you need professional guidance, we have a network of professionals that can provide you with legal assistance to help you surrender your Timeshare Ownership.