What is a Timeshare Buyback Program?
If timeshare ownership is no longer a fit for your lifestyle, there are multiple timeshare exit strategies available on the timeshare secondary market. The simplest and most cost-effective of these timeshare exit strategies is utilizing a developer’s timeshare buyback program.
What is a Timeshare Buyback Program?
Most major timeshare developers offer timeshare buyback programs. A timeshare buyback program provides owners with a way to return their timeshare product to the developer that initially sold it to them.
Utilizing a developer’s timeshare buyback program is the most direct way to exit a timeshare, as this process does not involve third-party timeshare exit companies or timeshare resale companies.
To qualify for a timeshare buyback program, owners typically must be current with their maintenance fees and on their mortgage payment.
How Does the Buyback Process Work?
Any owner looking to take advantage of a timeshare buyback program should first contact their developer or homeowners’ association directly to learn about their options. A list of known timeshare companies with buyback programs and how to contact them is available on ResponsibleExit.com.
Navigating the end of timeshare ownership can be as simple as the initial purchase if an owner follows these steps:
Step 1: Know your timeshare including what you own, payment status, current usage, etc. A complete checklist of things to know can be found on ResponsibleExit.com.
Step 2: Contact the resort or developer to inquire about buyback options.
Step 3: Review the buyback offer. An owner may want to compare it to what similar timeshares are selling for on credible timeshare resale sites.
Step 4: Complete the paperwork and finalize the exit process.
If an owner’s timeshare resort developer is unable to help, their exchange company – likely either RCI or Interval International – may be able to connect them to their resort or Homeowners’ Association (HOA), as well as provide additional information that can help to inform their decision to exit, including continued usage options.
Alternatives to Timeshare Buyback Programs
If a developer does not have a timeshare buyback program or is unable to help an owner with their unwanted product, there are several additional avenues they can take.
Resales
If an owner does not want to engage a resale company or real estate agent, they have the option to sell their timeshare themselves on sites like RedWeek, eBay, and Timeshare Users Group (TUG). If they elect to take this route, it’s important for owners to understand the nuances behind a sale, such as knowing the timeshare value, how to market it to the right audience on the right platform, and more.
If an owner wishes to enlist the help of a resale company, they will work with a third-party entity that manages a timeshare listing on their behalf for a fee. It’s crucial that owners avoid scams by verifying the legitimacy of any company they work with through checking reviews, looking for complaints online, and ensuring the company is registered with relevant authorities. The Resale Directory on ResposbibleExit.com, The Federal Trade Commission (FTC) and Better Business Bureau (BBB) are good ways to verify companies and avoid scams.
Rental
Renting out a timeshare can provide a source of income to offset maintenance fees. Owners can list their timeshares on various short-term rental platforms, but they must first make sure this option is allowed under their ownership rules and regulations.
Give It Away
If time is of the essence and an owner simply wants to offload their timeshare quickly, they can list the timeshare for sale for below market in the hopes of attracting a buyer they can transfer the ownership to. Another alternative is donating your timeshare to a charity, though not all charities accept timeshares.
Is a Timeshare Buyback Right for You?
The timeshare resale market has several options for owners who want to exit their timeshare. Whether owners elect to resell through a third party, rent, or simply give away their timeshare, it’s important that they do their due diligence in selecting the right avenue for their needs.
Checking the timeshare exit resources available on ResponsibleExit.com is the best place to start to ensure owners are selecting the right resale or exit option for them and avoid timeshare exit scams from unvetted third-party exit companies.