So, you want to sell your timeshare? The big question now is: how much should you ask for it? Get it right and you may eventually sell. Get it wrong and you’re guaranteed to continue paying those maintenance fees for years to come. Unfortunately, almost all timeshare owners mess this one up. That’s because selling a timeshare is so counter intuitive. For instance, unlike traditional real estate, timeshares do not appreciate in value; they depreciate. Just to give you an idea how much money they lose, the timeshare you bought new for, say, $20,000, is now likely only worth a few hundred dollars. With that in mind, here are some facts to help you assess the actual resale value of your timeshare:
The price you paid the developer for your timeshare was mostly marketing costs. Think about it. Not only do resorts have to pay their sales staff, but they often offer lavish perks just to get potential customers in the door. These include everything from free shows and tours to rooms and plane tickets. With the price of perks alone, it’s easy to see why new timeshare prices are so high.
There are many more sellers than buyers. For every buyer there are hundreds of properties available. Yours can easily become a needle in a haystack. Of those few timeshares that do sell, most go for about 85% less than the original developer’s price.
Selling to a buyer on the internet is much harder than selling to one in person. When people buy new, they are typically on location, experiencing the property and having a good time. You’ll be selling online with a brief description and a few photos. There’s no comparison. And don’t make the mistake of pricing your timeshare based on other listings. The overwhelming majority of these won’t sell. Listing companies love overpriced timeshares because they get paid to relist again and again. Also, don’t expect accurate resale advice from the resort, since their sales costs are higher and lower resale prices devalue their new properties.
The real value of a timeshare is in its use, not its resale value. So don’t think of selling as a way to recoup the money you paid, but as a way to get out of future maintenance fees. Check out this easy to use calculator (hotlink the word calculator) to see how much you’ll spend in maintenance fees. Keep this in mind when setting your price. If you go low enough, you may eventually sell, although the timeshare resale market is so depressed that many people have reported not even being able to give their property away.
Now that you have set the price, you’ll need to decide how to list it. (Hotlink the words “how to list it; and I’ll do another article on that) Once you post your timeshare online, be extremely careful of getting scammed (hotlink the word scammed). Con artists target timeshare owners looking to sell. In fact, the Better Business Bureau warns that the timeshare resale market is one of the most dangerous hotspots for getting scammed in the nation. If you’d like free expert advice on the best way to get rid of your timeshare, call Timeshare Specialists at 800-965-6565.