How to sell a timeshare is a question that is coming up quite often these days. One of the reasons is that many people are having financial difficulty during these bad economic times. In addition to that there are many people who bought timeshares thinking they would use it often, but then realize that they don’t have time for it anymore.
The timeshare market has really been hit hard during this economic downturn. Part of the problem was self-inflicted because just like the single family home real estate industry they overbuilt thinking that demand would continue going up and up. The timeshare market, unlike the single family home market is actually a pretty good model, though. Think about it. You build a cookie cutter; big complex … each unit costs relatively little to build as part of a whole … and the builder gets to sell it 100 times over … what a profit!
Now, the buyer has a problem on the flip side when trying to figure out how to sell a timeshare. Again, there are many reasons why a buyer would want to sell. But, the biggest problem is that they’re competing with the builders themselves. In a timeshare resale market, the builder has an advantage because they can discount pretty heavily. If you bought the timeshare at retail prices, say $40,000 for a two week stay, the builder can discount up to 50% and likely still make a profit. Why? Remember they can “sell” the same unit up to 100x or more!
So, how to sell a timeshare is a tough problem for a seller. The first key thing to do is to price your unit correctly. Look at several different resale websites to see how much others are reselling their units for. Keep in mind, even the unit owners are reselling their units. Many owner-sellers don’t want to take a hit in selling, so they keep the price at or around what they bought it for. This is not a good idea. People familiar with the timeshare resale market know where to go for discounted units.
Make sure you know all of the assets that your timeshare has to offer. For example one of the hot selling points for many timeshares is the ability to exchange your unit for “like” units in other parts of the world. How to sell a timeshare using your assets is best described like the following. You should know which exchange program you are in, if any. Check out what amenities you have in your complex. Do you have a pool, concierge or even a grocery store within the complex? And, is your unit deeded or not? Deeded is a big issue for those looking to pass it on to the next generation in perpetuity.
Now, if you’re looking to sell your timeshare quickly, you really should look at all options. There are companies will buy at a fixed price and they pay quickly. There are also companies who allow you to post your unit, but for a fee. Then it’s up to you to list, show, price, etc. But the headache of selling, paperwork, etc. is on you.
Oftentimes, the question of how to sell a timeshare is not as important as when to sell a timeshare. The best time to sell a timeshare is not when you are desperate nor when the market is flooded with timeshares. In either case, you’ll likely be selling a steep discount. Just keep some simple ideas in mind: research the timeshare resale market within your area, price your unit appropriately, perhaps even aggressively if you are in a hurry, look at all the amenities your unit/complex has to offer, and don’t be afraid to sell at a “loss” if you need to.