Selling your timeshare can be a difficult and depressing task. When confronted with the process some owners decide to donate their weeks while others may seek out the services of a timeshare resale company. It should be no surprise that the resale market has kept pace with new timeshare sales. Every new timeshare sale eventually results in a resale. Where there is need, there is service, and many companies have formed to serve the needs of the growing resale market. Caveat venditor (let the seller beware), a portion of the resale companies out there are looking to make a quick profit.
Find out if your resort has a resale program before working with any other company. Resorts with active resale programs tend to yield a higher resale price for their units. In most cases the resale program has a list of interested buyers for the resort and they have a very good understanding of market prices for their units. Some resorts do not operate resale programs in house, some have working relationships with local realtors.
Be careful when paying upfront fees. There are companies out there that make impossible claims to entice the payment of a listing fee. These untrustworthy companies are out for a quick payment with little to show for the transaction. There are established and trustworthy resale companies that require a listing fee. Do your homework if a company asks for an upfront fee. How long has the company been in business. Is the company listed with the BBB? How many timeshares have they sold in the last year? Is the listing fee refundable if the timeshare is not sold?
Some resale companies do not require listing fees; These companies may charge higher commision rates to offset their costs to advertise the timeshare week. Some companies may only accept weeks at specific resorts and some may only accept weeks at specific prices. Expect to list your week at 50-75% of your original purchase price with most sales closer to 75%.
Commissions are commonly either a percentage of the sale or a flat fee based on the sale price. Percentage based commisions can range between 10-50%. Flat fees are usually based on sales price brackets. As an example the company may charge $1,000 for weeks that sell between $0-$5,000 and $2,000 for weeks that sell between $5,000-$15,000. Commisions may also fluctuate based on listing fee price.
Listing fees and commissions are two of the three fees commonly associated with the resale process, the third is closing fees. Closing fees can vary depending on vacation. The resale company can often provide a reasonable estimate of the closing fees. Review your resale contract to understand any other fees that may be charged. Some companies may not charge a listing fee but they may charge advertising fees when the week is sold. The contract should also detail the usage rights while the week is listed.
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