Timeshare Council » resale

10 Things You Should Know About Timeshares

Time Share Advisor — Thu, 22 Sep 2011 03:28:34 +0000

Understand the contract.
It is easy to sign a timeshare contract, but it may be hard to get out of one. Make sure you understand all of the terms. When do you get to use the property? Do you get the same property every time? What is your yearly total cost of ownership? Are there set dues and fees? How much can the dues and/or fees increase each year? Who manages the property? Who do you contact with contract questions?
Walk away from high pressure sales.
There are good timeshare deals, and there are timeshares deals that require high pressure sales. Walk away from a sales pitch if you feel pressured to make a decision on the spot. The last thing you want is buyer’s remorse after signing a binding contract. You should also research the company you are doing business with, or at the very least check their rating on the Better Business Bureau. Walk out the door if the word free comes out of a sales persons mouth.
Location, location, location
If you want to trade, you need a desirable location. You will probably not get the best trades with Vegas or Aspen in the summer.
Timeshares are not investments
The stock market is for investments, timeshares are for vacations. The value in a timeshare is the quality of your vacation. You should feel good about breaking even, should you decide to sell your timeshare. You can rent some timeshares, but again, feel lucky if you break even.
Maintenance fees
All timeshares have maintenance fees. You will pay an annual fee, even if you do not use the timeshare. Read the contract, and make sure you understand the terms of the maintenance fees.
Exchanges
You may never tire of your timeshare if it is in a desirable location and time of year. You may have the option of exchanging your timeshare through a timeshare exchange broker should you want to explore other locations.
New or resale
You can save a considerable amount of money by purchasing a timeshare from a previous owner, maybe even 50% or more.
Fixed week vs. floating week
Fixed week means that you get the same week every year (IE: 4^th of July). Flex week means that you can claim a week within a range of weeks.
Taxes
Any profit from the sale of your timeshare is taxable. Selling at a loss is typically not deductible.
Donating a timeshare
You can donate your timeshare to a charity

Caveat Venditor

Time Share Advisor — Tue, 20 Sep 2011 23:54:41 +0000

In the timeshare industry there has always been shady characters. The timeshare industry has definitely grown a reputation for luring and trapping consumers into a situation that they cannot afford and have a very hard time getting out of. This is not a news flash by any means. There is now another layer of scam artists in the industry.

With the downturn in the economy in recent years, many timeshare owners have become desperate to rid themselves of costly timeshares. These consumers can become desperate and become easy prey to dishonest people looking to make a quick buck. There is a new epidemic of “companies” claiming to help people get out of their timeshares. They charge fees and many times the customer sees no results from these broker arrangements.

Too make things worse some of these companies rip people off for as long as they can until caught. They then turn around and start under a different name with the same scam. There are regulators trying to bring these criminals to justice but it is not easy.

It is imperative that the consumers do a thorough check of any broker they are looking to hire for their timeshare. Absolutely do your homework, get recommendations call the Better Business Bureau and NEVER pay for anything upfront! Do whatever you can to be sure you are not victimized twice!

What are vacation clubs

Time Share Advisor — Mon, 27 Dec 2010 22:34:04 +0000

Many people are also tempted to buy into a vacation club. The main difference between clubs and generic timeshares are the amenities.

Vacation clubs are generally located in heavily tourist oriented areas, like Orlando for example. Vacation clubs can be expensive after all they need to pay for all the extra amenities. Also, because of the popular locations the fees and taxes are commonly more expensive. One of the most popular vacation clubs is Disney. This is because it is targeted to families and tied in with the large Disney resorts, cruises, parks and the like.

Take into consideration that these areas have an extremely dense population of resorts and hotels. It is very likely that you could find what you want for the price you want. Likewise, if you want to pay little you can still find options in these areas. Unless you MUST HAVE a Vacation Club, look for a one with low maintenance fees, during a prime week, in an area in high demand but fewer timeshares. Times when kids are out of school, holidays, spring break and summer, and prime ski weeks are good things to look for also.

The key thing is to buy RESALE! You can then look into exchange for other areas you wish to go. Another thing to consider is where you live. If you live far away from your timeshare having to purchase airfare or transportation to the timeshare can be very important. You might want to look for something you can drive to and also exchange to other locations, to get the most bang for your buck.

Working with timeshare resale companies

Time Share Advisor — Mon, 15 Nov 2010 04:51:41 +0000

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.

Timeshare red weeks

Time Share Advisor — Mon, 21 Jun 2010 02:31:12 +0000

The high season and holidays are known as red weeks in the timeshare industry. Many times it may seem like a good idea to buy a timeshare if you enjoy vacationing during these times. Prices are higher for accommodations during this period and can make it seem like a good deal. Think long and hard before you buy a timeshare. Even if you are tempted by red weeks or high season offers. Can you afford the annual price plus air fare every single year for the rest of your life? Marriage, divorce, children, grandchildren, financial reverses don’t matter, you have to continue to pay for it. The moment you buy it, it is worth a fraction of what you paid for it. Often it is cheaper to stay at a hotel. There are no tax benefits. Check out the prices on ebay. Check out the time share you want to buy by googling it and looking at the resales. Timeshares are a terrible investment. You have on going maintenance fees to pay, you can not be sure that you will get the week(s) you want, and they have almost no value if you try to sell them. You would be better served by just staying at a nice hotel in the area of your choice, than in buying a timeshare.

How much is my timeshare worth?

Time Share Advisor — Tue, 02 Feb 2010 03:12:30 +0000

Timeshare values are determined by location and the week. Your asking price should be competitive with other units for sale at the resort with the same week, or close to the same week. Start at a competitive price, but be willing to negotiate. Your asking price may need to come down further if there is no interest in your initial listing. Keep in mind the lowest asking price usually gets the most action.

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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