Timeshare Resell Market Strategies
By: Lance T Denha, Esq.
It is no secret that many who have purchased timeshares no longer wish to own them for a variety of reasons. One major reason is the obligation to pay a yearly maintenance fee, even if you don’t use your timeshare. Those fees often rise considerably over time.
The Timeshare rescission rate is around 15%, but the number of owners who express dissatisfaction with their interest or a desire to get rid of it is substantially higher. With this in mind, is there a practical strategy in place for a consumer to exit their timeshare interest?
With the development of internet-based technology platforms, selling your timeshare has never been easier than it is today. Even though the traditional means to sell timeshare still exist, much the same way they did 30-40 years ago, today’s expansive online options give you the ability to market your timeshare for sale to the world.
Before attempting a sale, make sure you have all your ownership paperwork as well as details about what and where you own, resort amenities, and fee details. To be able to transfer the title, you should also be current on all payments and maintenance fees. If you’d like to try selling it on your own, some timeshare management companies or homeowners associations may offer free advertising in a newsletter or website. You can also advertise your property for sale on sites like Craigslist or eBay for no or relatively low fees.
You can also advertise in real estate or travel sections of newspapers and websites dedicated to timeshare resales, but you may have to pay a bit more. Advertising fees can vary from a few dollars to hundreds, so make sure you understand the cost and for how long your advertisement will run. If you find a buyer, you will have to go through a process similar to selling a home. In addition to drafting a contract with the purchase details, your buyer may also request the assistance of a closing company to help process the transfer, which will typically cost $300 or more.
Beyond the home resort, there are local real estate agents that may be able to help. When researching a licensed agent for help, it’s best to search out an agent with specific timeshare experience that understands the product and the marketplace, but with a marketing plan or network to support their ability to sell the timeshare. Some exist, especially in smaller, high traffic tourist areas. Otherwise getting out of your timeshare should lead you to seeking a legal opinion based upon the manner in which your contract was initiated and signed to determine if there legal exit strategies with your timeshare.
