How To Resell a Timeshare Safely

The first step to reselling your timeshare is gathering all the necessary documents. Everything in order ensures a smooth resale process and allows potential buyers to verify ownership and maintenance history. The essential documents you’ll need include:

• Timeshare Deed: Proof of ownership that shows you have legal rights to the timeshare.
• Original Purchase Contract: This contains essential details about your purchase, such as price and the number of points (if applicable).
• Maintenance Fee Records: Potential buyers need proof of up-to-date payments on annual maintenance fees.
• Exchange Membership Info: Gather your membership details if your timeshare is affiliated with exchange networks like RCI or Interval International. Buyers are often attracted to timeshares that provide access to various locations via exchange programs.

Having these documents ready will make it easier for brokers, buyers, and the timeshare company to proceed with the sale process.

Before pursuing any resale avenues, contacting your timeshare company or homeowners' association (HOA) is essential. Some timeshare companies have internal resale programs that may assist you or provide a list of recommended licensed brokers. You may also learn about important clauses like the Right of First Refusal (ROFR).

Right of First Refusal (ROFR) is a clause that gives your timeshare company the option to buy back the property before you sell it to a third party. This means if you find a buyer, the timeshare company may choose to step in and purchase the timeshare themselves, usually matching the offer made by the buyer. Understanding whether your contract includes an ROFR clause is critical to ensuring a smooth transaction and avoiding unnecessary complications.

If your timeshare company opts to exercise ROFR, it can benefit you, as the company is more likely to complete the sale quickly and without haggling. However, if they choose not to, you can find another buyer.

Working with a licensed resale broker is one of the safest and most effective ways to sell your timeshare. Licensed brokers specialize in the resale market and have the experience to navigate the process smoothly. They can help price your timeshare competitively, market it to the right audience, and ensure legal compliance throughout the sale.

Researching and selecting a broker with a proven track record is essential. Start by checking if the broker is licensed through resources such as the Association of Real Estate License Law Officials (ARELLO). You can also verify the legitimacy of a resale company through the ARDA-ROC Resale Resource Center, which provides a list of reputable resellers.

Some of the most trusted names in the timeshare resale market include:

• Fidelity Real Estate: Specializes in reselling timeshares for famous vacation clubs like Disney Vacation Club, Marriott Vacation Club, Grand Pacific Resorts, Club Wyndham, Hilton Grand Vacations, Holiday Inn Club Vacations, Hyatt Vacation Club, Westgate Resorts, and many more.
• Timeshare Broker Associates: A licensed brokerage that helps resell timeshares from multiple resorts and vacation clubs like Westin, WorldMark, Disney, Wyndham, Marriott, and Hilton.

The timeshare resale market can attract fraudulent companies. To avoid falling victim to a timeshare resale scam, be wary of any broker or company that requests an upfront fee. Legitimate brokers usually get paid through commissions after the sale is completed. Avoid companies promising a “quick sale” without supporting documentation or a straightforward process.

Setting the right price for your timeshare is critical to selling it successfully. Pricing too high could leave your timeshare on the market for longer than expected, while pricing too low may result in a significant financial loss. Several factors can impact the value of your timeshare, including:

• Resort Location: Timeshares in highly desirable areas such as Hawaii or Orlando tend to have higher resale value.
• Resort Amenities: The quality and variety of amenities, such as pools, restaurants, spas, and golf courses, make your timeshare more attractive to buyers.
• Product Type: Points-based timeshares or floating-week contracts generally offer more flexibility, which can increase their resale value.
• Exchange Options: Timeshares affiliated with exchange networks like RCI or Interval International may fetch a higher price due to their added flexibility.
• Time of Year: The season associated with your timeshare can also influence pricing. Timeshares with prime weeks during holiday seasons or peak travel times tend to be more valuable.

Once you’ve gathered your documents, contacted the timeshare company, and decided on a resale broker, it's time to list your timeshare. You have a few options:

• Licensed Brokers: Your broker will typically handle listing your timeshare, marketing it to potential buyers, and managing negotiations.
• Online Marketplaces: Websites such as RedWeek and Timeshare Users Group (TUG) allow individual owners to list and sell their timeshares.
• Timeshare Exchange Platforms: Some timeshare exchange networks offer resale assistance. Explore their resale programs if your timeshare is affiliated with a network like RCI or Interval International.

When listing your timeshare, be as detailed as possible about the property. Include photos, information about the resort, and specifics on available weeks or points. Listings that clearly explain the benefits and amenities of the timeshare are more likely to attract serious buyers.

Reselling a timeshare comes with associated costs. While legitimate resale brokers operate on a commission basis, there are other fees that sellers should be aware of:

• Commission Fees: Most licensed brokers charge a commission, typically between 15% and 25% of the sale price.
• Closing Costs: Sellers may need to pay for title transfer fees, legal documents, and other administrative expenses during the closing process.
• Maintenance Fees: It's important to continue paying maintenance fees on your timeshare while it is up for sale. Buyers will be more interested if the costs are current, and neglecting to pay could complicate the sale.

Understanding these costs will help you avoid surprises during resale and ensure your sale goes smoothly.

The closing process begins once you've found a buyer and agreed on the price. A closing company will typically handle the legal paperwork, transfer of ownership, and payment processing. Depending on the complexity of the sale, the closing process can take anywhere from 30 to 90 days.

Unfortunately, the timeshare resale market is plagued with scams, so it’s crucial to proceed cautiously. Here are some tips to avoid falling into a fraudulent scheme:

• Never Pay Upfront Fees: Legitimate brokers do not require upfront payments. They usually take their commission from the sale's proceeds.
• Research the Resale Company: Make sure the company you’re working with is licensed and has a good reputation. Use resources like ARDA-ROC’s Resale Resource Center or ARELLO to verify their credentials.
• Avoid "Guaranteed Sales" Promises: No legitimate broker can guarantee a sale. Be cautious of anyone who claims they can quickly sell your timeshare without thoroughly reviewing your property.