Are you considering dipping your toes into the timeshare resale market and want to know how to do it the right way? Perhaps you have a timeshare and want to sell it. Or you might be thinking about buying a timeshare resale for your next family vacation. Either way, you need to consider these helpful resale tips.
Some timeshare resale listings use terms that are confusing and downright unclear.
These helpful timeshare tips from the pros will clear things up to help you determine if buying or reselling a timeshare is right for you.
The first section will cover essential resale tips for buyers. If you’re a timeshare reseller, you’ll find helpful tips for you in the second section. Read on to discover how to get the most out of your timeshare.
Timeshare Resale Tip: Pros and Cons for Buyers
A timeshare resale is a listing that is sold by an individual person instead of a vacation club or resort. One money-saving perk of buying from a timeshare reseller is you’ll typically pay much less (up to 70% less, according to sellmytimesharenow.com) than if you were to buy directly from the resort.
The downside is that you don’t get all the tempting free gifts that you would get if you were buying directly from the developer or resort.
Similar to buying something secondhand from Ebay or a thrift store, you’ll get a bargain when you buy a secondhand timeshare, but you have to do your research and use a broker to make sure you’re getting what you signed up for.
Things to Consider Before You Buy
Before you purchase a timeshare resale, you need to know if you’re signing up for a floating week or a fixed week. A “fixed week” means you have to use your vacation on that particular week each year.
One potentially negative consequence of buying a fixed week timeshare is that aside from being locked into going on vacation the same exact week each year, you might also be unwittingly vacationing during the busy season. The resorts call this “high season.”
It’s a good idea to call the resort to find out when their high season is before you sign on the dotted line. Unless of course you don’t mind crowds and long lines and noise.
Another major factor to think about is ownership type. There are several types of timeshare, including Club, Deeded, or Right To Use (also called RTU). The laws in each state are unique and determine property ownership rights.
Some timeshares allow you to pass your timeshare onto an heir after you die , while others allow you to use the property for up to 40 years. Find out how much “remaining life” is left on the property.
Make sure you know which type you’re signing up for. Lastly, financing options might be limited when buying secondhand, so you may need to pay with cash. Whereas when you buy direct, the resorts are highly motivated and practically beg you to run up your credit cards.
Buyers, Watch Out for This
Another important thing to consider is this: it’s possible that full ownership rights may not transfer to you. That’s why it’s best to have an experienced timeshare resale company manage the transaction. At the very least, hire someone to do a title search to ensure that the seller really owns the property.
Timeshare Resale Pros and Disadvantages for Resellers
When reselling a timeshare, a reseller will probably not recoup all of their initial investment. This is because a secondhand timeshare will typically sell for 30% to 70% less than a “new” one that is sold directly by the resort. And unfortunately, you can’t claim this loss on your tax return.
Although you may not make as much profit, you’ll most likely be getting paid with cash since financing options are limited for buyers. Another perk is that some timeshare companies allow you to rent out or lease your share.
However, timeshares are hard to sell, even when they’re new. That’s why the resorts use high-pressure sales tactics…because they have to!
Timeshare Resale Alternatives: Timeshare Rental
If you’re the property owner, timeshare rental means you can earn income without reselling it to someone else. Renting out your timeshare will help you offset annual fees and possibly pay it off early. Of course, individual timeshare companies all have different rules about leasing and renting so be sure to check with the resort first.
Timeshare rental allows renters the beauty of going on a timeshare vacation without the hassle of committing to it year after year. You can find rental deals on sites like Redweek. You can even find timeshare rentals on AirBNB!