A timeshare is a form of vacation ownership in which a buyer purchases a week or a set number of years at a resort. The developer of the resort sells the deeded units at top price. When a timeshare owner wants to sell, the designated week enters the timeshare resale market. This affords an opportunity for the vacation interval to be purchased at a much lower price. Timeshare resale opportunities are garnering much attention because there are so many for sale at great prices. But before getting involved in the timeshare resale market, it is important to know the basics.
The timeshare resale market industry gives owners a solution to their unwanted timeshares. Many sell because the timeshare no longer meets their lifestyle or they can no longer afford the maintenance fee. Since many resorts do not have timeshare resale programs, numerous companies are in operation to strictly buy, sell and rent timeshare resale properties.
There are thousands of timeshare resales in countries around the world. Many are located in popular vacation destinations and offer much more spacious accommodations and greater amenities than a hotel room. People buy timeshares in the resale market because the price is much less than the developer's asking price.
When you sell a timeshare, your property is listed on the timeshare resale market. The selling price is based not on the original purchase price, but rather on market value. Current supply and demand at the resort, age of the resort, location, time of year of the week being sold and unit size are all factors that go in to setting a timeshare resale price.
The avenues available for selling in the timeshare resale market include online companies and licensed real estate brokers who handle resales. In both instances, expect to pay a listing or commission fee after the sale closes. Some timeshare owners sell privately by advertising online in open marketplaces, in real estate publications or in classified ad sections in various newspapers.
Many owners and timeshare resale companies rent properties that are up for sale until they are purchased. If you want to stay in a timeshare resort without having to own a week and are flexible with your vacation plans, you can rent a timeshare. Renting a timeshare resale can be a better deal than other accommodations in the area.
When buying a timeshare at resale, keep in mind that it is not an investment in real estate. Rather, it is a way to ensure that you take a vacation every year. Before buying, visit the resort, request their annual report and ask questions about maintenance fees and peak times. This will help in your decision of buying either a fixed week, which is the same week every year, or a floating week, which changes each year. Generally, float weeks are priced lower than fixed weeks.
Buy a resale timeshare from a reputable firm. Use the Internet to research companies, brokers, agents and owner marketplaces.
Deceptive practices and scams exist in the timeshare resale market. When selling your timeshare, many firms may force you into paying for an appraisal, which is not necessary to sell your timeshare. Others lure you in with guarantees to sell your timeshare, but require you to pay them thousands of dollars to do so.
Before paying for any transaction in the timeshare resale market, request all information in a written contract that also outlines all the services the company is offering and the corresponding fees. If a company uses scare tactics or tries to pressure you into making a decision by a certain date, pull out from the deal.
