Ask Your Developer To Take It Back
Some developers like Wyndham have programs to buy back your timeshare. These programs are based on the discretion of the developer. Ask your Developer if they have a program to help you transition out of your timeshare. They are often safer and more convenient than using a timeshare exit company and paying the additional fees.
There Are No Guarantees With Timeshare Resales
The sale of your timeshare is completely based on the economic principals of supply and demand. Selling your timeshare product will depend on the market and the competition of your product. Remember, timeshares are not meant to be a financial investment. Timeshares were designed to be an investment and commitment to future vacations with your family.
Check Out the Competition - Comparable Products
If a resale company is promising you results, see how likely that is by checking out the other units available in your resort or at the destination. Research the timeshare sales sites to see how many units are already for sale in your area. How much are they asking for and how long have they been on the market? Be sure to compare a product that is comparable to yours, same resort, unit size, time of year, exchange parameters. The age of the product, resort amenities, product type, exchange options, location and time of year are some aspects that may determine price.
Is Your Loan Paid Off
Prior to selling your timeshare, your developer loan must be paid. If you receive less money than what you owe, you should consider keeping your timeshare and using it for your vacation or renting it to cover your costs instead of selling or cancelling.
Understand All the Fees Involved - Legal, Advertising, Real Estate Closing & Commissions
You may need to pay legal fees in addition to real estate commissions and closing costs when you sell your timeshare and they can be substantial. If you list with a third party, you may also have to pay advertising and promotion fees. In addition there may be taxes, resort maintenance fees, legal fees and title transfer fees. Research all the fees involved before listing your unit.
Renting Can Offset Costs
Instead of selling or cancelling, rent your timeshare to recoup the cost. Contact your Homeowners Association (HOA) to find out the options available. Many owners rent through their HOA.
Walking Away From Your Timeshare Has Many Repercussions
If you walk away from your timeshare, it is likely that you will face foreclosure and long lasting credit issues. In addition, there are associated legal fees with foreclosures. There may also be costly law suits and harassment by collection agencies.
Consider Your Future Vacation Costs Post-Timeshare
What is your vacation plan after selling or cancelling your timeshares? You may find that after you research the costs, it is close to what you are already paying. If you include the costs associated with selling your timeshare and you add the cost of your future vacations, you may definitely be paying more than what you were paying for your timeshare. And, what is your plan to ensure that you take the vacation. If you sell your timeshare and are not financially committed to taking a vacation, will you?
Know the Players
ARDA's Consumer Advisory 1
describes the resale players:
Historically, some timeshare resale advertisers have taken a lot of criticism (not to mention some government legal actions) for charging high up-front fees, and doing little or nothing for the timeshare owner who listed his or her timeshare for sale or rent. However, the first step to selling anything is letting people know it's so whatever you do you'll need to advertise. Just remember it is not prudent to give financial authorization until you've thoroughly investigated the company and comparison shopped. There are many places to advertise your timeshare yourself for little or no cost on the Internet or in print. Read more from ARDA!
Licensed Real Estate Companies
Timeshare resellers holding real estate licenses are usually - companies. This means that they can not only advertise your timeshare for sale or rent, but also assist buyers, help negotiate prices, write up contracts and assist with the closing of any sale or rental. Some licensed companies may charge an up-front fee (if permitted by state law) or they may only —charge a commission (10% to 30%) when a sale occurs, based on the price for the timeshare interest sold. You can check on the licensing status of individuals in 42 jurisdictions at www.arello.com
. Read more from ARDA!
Other Timeshare Resellers - A Word of Caution
There are other companies who may offer to buy your timeshare interest (i.e. 'week'), take it for a fee that you pay, help you give it to charity, put your timeshare in a travel club or some other "creative" solution. Be careful. While some of these offers may be legitimate, be sure to check them out thoroughly before paying anything. Unfortunately not all companies are reputable, so please make sure you understand who you are dealing with, what their contract says, what others who have used the services think and most importantly if it sounds too good to be true - it probably is. Some of these companies are asking for hundreds to thousands of dollars from timeshare owners. One company may have come up with a good idea which they execute well —while others may simply copy the original idea as a way to make money. Read more from ARDA!