You’ve made dozens of lasting memories as a timeshare owner over the years, but vacation ownership is no longer a fit for your lifestyle – now what? Many owners looking for options to exit their timeshare aren’t sure how to sell a timeshare or how to navigate the timeshare resale market. In order to help these owners, ARDA, the association for the timeshare industry, is shedding light on the nuances surrounding the timeshare selling process, including the best timeshare rental options and timeshare resale companies, as well as the timeshare resale scams to avoid.
Understanding the Timeshare Resale Market
The timeshare resale market differs significantly from other real estate markets. Because timeshares are not real estate investments, they rarely appreciate in value. This can be an attractive offer to potential buyers on the resale market but could leave you feeling confused about your timeshare’s retail value.
While there are several ways to sell a timeshare, you should always start by asking your developer about their resale options. Many timeshare developers have a timeshare deed-back program that allows owners to essentially return their timeshare to them. Even if a developer doesn’t have a deed-back program, they can still provide you with a better understanding of the resale environment, including your timeshare’s resale value, timeshare market trends, and timeshare listing tips.
If your developer does not have a deed-back program, another option is to enlist the help of a resale company. Owners who are interested in this option should visit the Resale Provider Directory on ResponsibleExit.com — an online resource created by ARDA in partnership with leading developers and exchange companies that provides information on how to safely sell, rent, and exit timeshares via developer-generated no- and low-cost programs – to find a list of reputable third-party companies.
You also have the option to sell your timeshare yourself, either via an online listing or through a real estate agent specializing in timeshares. Reputable third-party resale sites provide helpful tips on how to successfully sell a timeshare online, while licensed real estate resale brokerages pair owners with expert real estate agents to oversee a sale from start to finish.
Steps to Prepare for Selling Your Timeshare
Preparation is key to a successful timeshare sale. Here the immediate steps to take before starting your resale process:
- Gather necessary timeshare documents and information – ResponsbileExit.com has a detailed checklist to ensure you have all relevant documents needed to sell your timeshare, including the original purchase agreement, proof of ownership, financing agreement, records of timeshare maintenance fees, and more.
- Understand the timeshare agreement and any resale restrictions – In addition to collecting all relevant timeshare documents, you should carefully review your timeshare agreement to understand any restrictions or clauses related to a resale.
- Determine the fair market value of your timeshare – If you decide to sell your timeshare online, research the fair market value of the timeshare by comparing it to similar listings. Websites like Timeshare Users Group (TUG), RedWeek and eBay can offer insights into current market prices. Knowing your timeshare’s value helps you set a competitive and realistic price.
Listing Your Timeshare for Sale
There are a few timeshare listing tips everyone owner should consider when creating an online listing:
- Choose the right platform: Options include online marketplaces like eBay and RedWeek, as well as third-party resale platforms or a licensed real estate resale brokerage company that manages your listing for you.
- Make your listing appealing: Like any item that’s for sale, it’s important to make your timeshare listing as attractive as possible to potential buyers. This means including high-quality photos and a detailed description of the property, and highlighting the specific features and benefits that make your timeshare special.
- Be transparent and fair about your timeshare — Transparency about fees and any potential limitations can build trust with prospective buyers. Pricing your timeshare competitively, based on market research, will also attract serious inquiries.
Avoiding Common Timeshare Selling Scams
Unfortunately, the timeshare resale market is rife with scams from deceptive and fraudulent companies who target timeshare owners; this is especially true in the resale market. Here are a few tips that can help protect you from falling victim to one of these scams:
- If someone contacts you unsolicited and says they have an “interested buyer” for your timeshare, this is fraudulent. Do not engage with them!
- If you receive an unsolicited call from someone claiming to be a representative of ARDA or ARDA-ROC or another legitimate company, you should still consider this to be fraudulent, unless someone from the team is returning a request you have submitted.
- Be wary of companies who contact you with false promises of modifying, cancelling or transferring your timeshare for an upfront fee. These are almost always fraudulent.
- If you’re asked to pay an upfront fee, or wire money for a “service”, “tax”, or any other “requirement” for a sale to be completed, don’t do it – that is a scam. This does not include nominal advertising fees that a legitimate reseller may ask an owner to pay up-front.
- If an offer sounds too good to be true, it likely is. Scam companies will typically entice owners by saying their buyer is offering a purchase amount equal or close to their purchase price.
It’s always important to verify the legitimacy of any resale company by checking reviews, looking for complaints online, and ensuring they are registered with relevant authorities. The Federal Trade Commission (FTC) and Better Business Bureau (BBB) are good resources for verifying companies and avoiding scams.
Alternative Options If You Can’t Sell Your Timeshare
In addition to the timeshare resale market, there are a few alternative avenues to exiting your timeshare.
Renting out your timeshare to friends and family can provide a source of income to offset maintenance fees. You can also list your timeshare on various short-term rental platforms, but make sure this option is allowed under your agreement.
Another alternative is donating your timeshare to a charity, though not all charities accept timeshares.
Learn More with ARDA’s Trusted Resources
By understanding the resale market, preparing adequately, listing effectively, avoiding scams, and considering alternative options, timeshare owners can navigate the process of selling their timeshare more confidently and successfully.
Remember to find the resources you need here on ResponsibleExit.com to effectively sell or exit your timeshare.