Timeshare Resale: The Dirty Truth
I hate to be the bearer of bad news but selling a timeshare is very, very difficult and in some cases almost impossible. Why is selling a timeshare so tough? The main reason is supply and demand. The supply of timeshare resales greatly exceeds the demand for resales.
Remember how you got involved in timeshares?
It was probably in response to a promotional offering with some type of free gifts or vacations. Then, you where probably only informed about the developer's property and prices. Nothing at all about resales, even if they were available at the same resort. The developer spends between $2,000 to $5,000 just to sell each unit at a new resort. Then because of their over inflated prices and high pressure sales tactics, many people buy without really knowing what they are getting involved in. Being shown a book full of 1000's of resorts and being told they could trade to any of them they wanted. No wonder so many timeshare owners get discouraged and want out.... creating the glut of supply.
My first timeshare presentation.
I know my first presentation was for a Free telephone to view what turned out to be a less than desirable resort, where all the salesman talked about was all the other great resorts I could trade for. He even said I would never have to use their resort which was actually a rundown converted hotel, but just trade to all these other places ( spending almost 30 minutes just pointing out wonderful resorts in the RCI book) anytime I wanted. Fortunately, I smelled a rat and didn't buy there. So I know where many of the bad feelings and disillusioned timeshare owners come from. Especially, after finding out that not only could they not trade into all these great resorts but if they wanted to sell their units they would probably only get about one tenth of what they paid for them and that was if they could find a buyer! So much for the great real estate investment angle to the sale presentation.
The Demand Side.
Unfortunately, the demand side is just as bad for timeshare resellers. Most people don't even know there is a resales market available until after they buy from the developer. Those who do know about the resale market are usually the more experienced timeshare owners and are only looking for real bargains.
Resale Brokers/Upfront Fees.
Timeshare resale brokers can also get you more exposure but you must pay for it. They will charge either an up front fee and/or a commission on the sale. Remember, you are paying for the extra exposure and their services, if you are asked to pay an upfront fee get a written listing of the actual service they are providing for that fee. In 10 years dealing with timeshares, I have yet to meet someone who sold their unit for even one half the developer cost through a listing agent/resale broker. They want your money now, and will promise anything to get it!
Scams and Semi Rip-Offs.
There are many rip-offs in the timeshare resale area with companies asking for $300 to $2,000 in upfront advertising, listing or appraisal fees. There should be no need for an appraisal to sell your timeshare. Any timeshare company that is doing their job will be able to give you a good idea as to what similar units are selling for. The only legitimate need for an appraisal would be for estate purposes or charity donation records. Be very careful about companies wanting to buy your timeshare for their own use and want you to get an appraisal from an independent appraisal company that they recommend. Several of these companies ripped off millions of dollars in appraisal fees before they were finally caught. The state of Florida and many others are trying to make this illegal. Now You and I both Know this article is can be very depressing for those trying to sell their timeshares, but hopefully by knowing the truth about the real situation, you will be able to act accordingly. Whether that means just keeping your units and learning how to best use them, or trying to price them more realistically and increase your avenues of more low cost exposure. Some are offsetting their expenses by renting out the use of their timeshare while they try to sell it. At least now someone has been honest with you about the timeshare resales and you now know where you stand and what must be done.
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