Timeshares can be difficult to sell without a loss. In the current economy it is not uncommon to sell your timeshare for 70% off of the original purchase price.  A timeshare purchased just five years ago for $10,000 may only sell for $3,000 today.  Coming to terms with such a drastic loss is difficult for some owners who purchased a timeshare with the belief that it was also an investment. The reason for the loss is simple supply and demand. New resorts drive up the demand through investments in marketing and sales. Marketing ends when the developer has sold the last unit and demand dwindles when the resort is not actively marketed. The loss is less drastic at resorts with active resale programs. Resorts with resale programs and staff keep the demand for the resort up. Prices can be driven down by resorts with abandoned units or highly motivated owners under financial pressure.

Determining a price is easy, the process of selling may be the most difficult. Never pay an upfront fee to sell your timeshare. I am sure you thoroughly regret purchasing your timeshare by now, it is understandable. It is unfortunate, but there are plenty of companies and individuals who prey on timeshare owners who want an easy way out; Fortunately they are easy to spot when they ask for an upfront fee to sell your timeshare with the promise of a quick and easy sale.

There are two golden rules to selling a timeshare: Don’t be afraid to take a loss, and never pay an upfront fee to sell your timeshare.

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Never pay an upfront fee
There are many less-than-reputable individuals and companies who will contact you with guarantees of selling your timeshare for an upfront fee. Don’t do it. The “broker” has no motivation to sell your timeshare after they have collected the up-front fee, and you will probably never receive a return on the fee due to a lack of sale.   The only exception to this rule is paying a fee to list your timeshare with a reputable company like Ebay or Craigslist.

Most timeshares sell on the resale market for up to 50% of the initial price
Be prepared to take a loss when you sell your timeshare. Making money on the “investment” of a timeshare is the exception to the rule. The value in a timeshare is the vacation, not a monetary return. Research what other comparable weeks and locations are selling for to get a feel for the market. The price you ask may be higher than what is available on the market, or it may be lower if you are looking for a quick sale.

You will need to cover the difference
If you have a timeshare loan then you will need to be prepared to write a check for the difference of the sale price and what you owe.  Don’t have enough cash on hand to cover difference? Rent the timeshare until you have paid down the loan.

Caveat Venditor – Seller Beware
The timeshare resale market attracts scammers on a global level. Walk away if you sense a scam. Always give yourself 24 hours to think before exchanging any money or signing any contract.