Giving a timeshare away might seem as easy as finding a recipient, but there can be a lot of fees hiding in that transaction. Whether it’s updating the records or creating a legal transfer, all of these things cost money. In fact, giving your timeshare away could cost you up to a thousand dollars in fees, and that’s a loss you want to avoid on an investment that is no longer viable. The timeshare market has been hit hard by the economy with owners willing to pay companies thousands of dollars to take their timeshares only for those buyers to turn around and sell them for a dollar on eBay. Fortunately, there are a few options to consider if you need to give away a timeshare.
Handing Back the Deed
While returning the deed to the property is not always an option, it’s worth looking at. First, you need to own the timeshare outright. That means that you cannot owe any money on it. You may incur a charge from signing the deed back over to the resort who manages it, but it will likely be lower than selling the timeshare to a friend or family member. Because this is an attractive option to timeshare holders, many resorts will be reluctant to accept a deed as the cost makes it difficult for them to continue operating their businesses.
Donating to Charity
While a timeshare can rarely be used by a charity, it can be sold. That means the timeshare must have value, which will not apply to all timeshares. Beware of companies that charge a fee to assess your timeshare or offer inflated values. The bottom line is that the charity has to be able to make a profit on your timeshare using the fair market value, which may not always be viable. If you are unable to sell your timeshare because it’s become unmarketable, a charity will not be able to sell it either, which is why donation is generally a good option only when it’s intended solely for charity. If a charity is able to sell your timeshare, you can claim it as a deduction when you file with the IRS.
Sell It Yourself
With many companies all too eager to take thousands from you just to sell that property for a dollar, why use a middleman at all? If you’re willing to acknowledge that your property has lost its value, sell it yourself. Any fees owed to an auction site like eBay are bound to be lower than going through a professional listing, and you can easily transfer your timeshare to an interested party in a relatively quick period of time. Before you place your timeshare on the market, make sure everything is in order by having any necessary documentation and ensuring that the resort will not charge a commission for the sale. Do some searches beforehand to determine the value of your property. Purchase any legal forms you will need for the transfer, and be prepared for the possibility of the buyer wanting to go through a third-party service to ensure proper handling of the property and any transfer of funds. Once the transfer is completed, contact the resort to ensure all of the records have been updated so that you are no longer responsible for things like maintenance fees.
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