Cold Hard Facts about Selling
hate to be the bearer of bad news but selling a timeshare is very, very
difficult and in some cases almost impossible. Since you are
reading this you are likely in the market to sell your timeshare, so
please read on for some very enlightening information! Here you
will not read what you want to hear, you wont discover that it is easy
to sell your timeshare, or that this is the "best time ever to
sell". You will get the truth and only the truth, and that truth
can save you thousands of dollars in wasted fees, not to mention
endless headaches surrounding the process of selling your timeshare in
the resale market!
is selling a Timeshare so tough?
main reason is supply and demand. The supply of timeshare resales
greatly exceeds the demand for resales. This has always been the
case in the timeshare industry due to the fact that so few people even
realize you can buy a timeshare resale! The vast majority of
owners only discover (or even think about) selling a timeshare on the
resale market, when they are ready to sell! As a buyer it is
common knowledge that you can buy a used car, but for some reason
people fail to discover that you can do the exact same thing with
timeshares! It is an even better deal when you consider there is
no such thing as a "new" timeshare. Unless you are absolutely the very
first person to stay in that room at that resort, someone has been
there before you!
With this information and considering the
struggling economy in the past years and ever increasing maintenance
fees, sellers outnumber buyers by a huge margin. This has driven
the prices of resales down to levels never before seen in this
industry. Some timeshares have depreciated over 99%, and it is
more and more common for individuals to actually list their timeshares
for a single dollar in hopes that someone will take them! There are
hundreds of Timeshares for sale right here on TUG, and eBay from owners
who are just looking to get out of their annual Maintenance Fees!
While we are not saying this is the case for all timeshares, it is
certainly a much different message than you would read on other resale
websites that want nothing more than for you to pay them money in the
hopes your timeshare will get sold.
fact remains that if you do NOT do your research
and obtain an accurate and REASONABLE resale price for your timeshare,
it simply wont sell...PERIOD. If someone tells you
they are lying to you...and are likely about to ask you to pay them
money. Telling you the
TRUTH is not going to
get you to part with your money, as who would pay knowing their
timeshare has zero chance of selling at a price anywhere near what you
paid for it new from the developer!
got involved in timeshares?
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
40 and 60% of the selling price of the timeshare just to MARKET each
unit at a new resort. Then in spite of the 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
thousands of resorts and being told they could trade to any of them
they wanted is persuasive and distracts the buyer from reality. No
wonder so many timeshare owners get discouraged and want out....
creating the glut of supply.
When you buy a timeshare,
you are not given instructions on how to use it. You are not told
that you can rent it out versus leaving it unused, you are given no
explanation the exchanging process detail. It's like being handed
the controls to an airplane and being told to figure it out on your
own! It's no wonder so many people just give up in
frustration! I know TUGGERs who have been doing this for 20 years
and still don't know all the ins and outs, so it's absurd to expect
someone to just know everything right after they purchase!
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 half 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 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 more experienced timeshare owners looking for real
bargains. This is furthered by the industry who has zero desire
or benefit to promote resales!
would anyone buy new if they could get the exact same week, at the
exact same resort, for pennies on the dollar from an existing owner?
where does that leave the timeshare reseller! Of all the factors
(price, location, time of year, amenities, quality of resort,
advertising etc.) that determine if and when a timeshare will sell, you
can only control two factors .....Advertising & PRICE!
Unfortunately you can't spend $1000 on dinner and gifts for your
prospects as the developer did for you. The developer is spreading his
cost over 100's or 1000's of units and is inflating the price to cover
the cost ( which he can get because new buyer don't know any better).
On the other hand, you are trying to sell just one unit to someone who
knows about resales, is informed about timesharing and is comparison
shopping among hundreds of like offers available.
what do you do?
you must price your unit competitively if you really want to sell it.
Check the prices of other resales at your resort (the closing sales
prices, not the for sales listings), see what the final prices were at
the auctions and contact resale brokers for more pricing info about
your unit. Check prices listed on our classified ad section and what
other brokers might have your units listed for by other sellers. You
are competing against all those other sales listing. Think about it
from the buyers point of view: they are looking for the best deal and
if you want to sell your timeshare, yours must be that best deal!
If you take anything away from this article, please above all
read the HOW TO SELL YOUR TIMESHARE article as well, it is a step by
step instructional guide on how to sell your timeshare yourself for
little or no cost to you, and avoid being scammed! I cannot tell
you how many emails and phone calls I get from people who find TUG
AFTER BEING RIPPED OFF! Be a step ahead of the game and
learn. Knowledge is power!
you must use cost effective advertising to inform the public of your
offer. If you are reading this article it means you have computer
access to the Internet. Post as many ads as you can using the free or
low cost outlets mentioned in the HOW TO SELL article above!
PAY LARGE UPFRONT FEES TO DO ANYTHING WITH YOUR TIMESHARE!!!
TUG classifieds is probably one of the best places for timeshare ads
(and your ads are free with your membership ) because everyone who
reads it is
interested in timeshares either for sale or rent ...a major plus. Also
check out Ebay and craigslist which have become a very popular place
for selling timeshares! read more here:
Free Timeshare Classified Ads in the TUG
contact your home resort, see if they have a public bulletin board
in their lobby or elevators or even a special internal rental or
advertising program (upfront fee warning applies here) where you can
post a for sale note ... this
is very good because any renter using the resort who likes it will be
interested in your offer. Check on posting an ad in the resort's
newsletter, many happy owners are looking for extra weeks at their home
resort if the price is right!
resale brokers (deal only with licensed real estate brokers,
there are many currently advertising in our Business
Ads section )
can also get you more exposure but you must pay for it. They will
charge a commission on the sale.
Remember, you are paying for the extra exposure and their
services, We recommend that if you are
dealing with a timeshare broker that you do it on a commission only
basis. That way they will get paid from the proceeds of the sale or
like every other real estate broker.
Remember pricing is the only thing you can control. If you do not
price your unit right, no one will ever be able to sell it for you. One
of the reasons some brokers charge an upfront fee is that too many
owners want to list their units at prices higher than the market and
they will never sell. Maybe the broker should tell them it will not
sell at that price and have their listings refused instead. No one
wants to hear the real truth. So instead, they will go on for months
and even years of not selling their properties, until finally they
start asking for a realistic fair market price.
I see ads on
our TUG classifieds that are just unreal, but for little or no cost,
most feel they might get lucky. Then after 3 months of advertising when
it comes time to renew, they wonder why they didn't sell their units or
only got a few, if any responses from their ad.
Scams and Semi Rip-Offs
are many rip-offs in the timeshare resale area with companies asking
for HUNDREDS TO THOUSANDS OF DOLLARS 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. Remember, never pay an upfront fee to
sell your timeshare! This article discusses most current Timeshare Scams
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. The best way to check on a company would
be on our TUGBBS
online discussion forums . If it sounds too good to
be true, it probably and almost always is.
Now You Know
know this article can be depressing for those trying to sell their
timeshares, but hopefully by knowing the truth about the situation, you
will be able to act accordingly. That may mean just keeping your units
and learning how to best use them, or trying to price them more
realistically, or increasing your avenues of low cost exposure. Some
are offsetting their expenses by renting the use of their timeshare
while they try to sell it. Others are even donating them to charities
and taking a tax writeoff ( there is another article in our Advice
section on donating timeshares to charities ). At least now someone has
been honest with you about timeshare resales and you now know where you
stand and what must be done.
would again like to thank you for your continued support of our Users
Group. The TUG website has been a major break through for TUG members
and all timeshare owners. It has become the most active timeshare
website on the Internet with over 250,000 hits per day. Take advantage
of this exposure by advertising your units on our website, but be
realistic about your price. Most resales even 10 years ago were lucky
to get 50% of what they paid if they bought through the resort
initially. Now with the struggling economy, this has actually
fallen to 0-25%!!!!
IS NOT SIMPLE, OR EASY TO SELL A TIMESHARE REGARDLESS OF WHAT SOME
PEOPLE WILL TELL YOU (usually right before they ask for your credit
card information) but it can be done if you take the time to research
the resale market and know ahead of time how to spot and avoid the
that you have gotten an introduction into what you can
expect when entering into this process of selling your timeshare, your
next step is to read the "How to sell your timeshare" living article on
the TUGBBS forums located here:
to Sell your Timeshare Article
absolute MUST READ for anyone even thinking
about selling their timeshare, it is the culmination of hundreds of
other timeshare owners just like you who have been in this position and
have provided you all the advice they wished they had when trying to
sell their first timeshare!
Even if you
to not become a paying TUG member for
access to the ratings and reviews, be sure to register on the TUGBBS
online discussion forums, it is absolutely free and is the #1 place on
Internet for timeshare help and advice! No question goes
unanswered, remember there are tens of thousands other timeshare owners
you who have all had to ask the same questions you have now!
Utilize their knowledge so you dont make the same mistakes!
Timeshare Users Group
Online Community Forums