Did you know that the timeshare industry is a $10.5 billion industry? This type of ownership model is a great option if you want a vacation property without all of the hassles that come with private ownership.
However, as anyone who’s tried to get rid of their timeshare knows, selling them can be quite difficult. Ultimately, you will never make back all of the money that you put into a timeshare.
But, there are some ways that you can maximize the return you get for selling it. How? Simple: by reading this article. In it, we’ll go over some of the common mistakes with selling timeshare. We’ll also cover how to avoid them so you can get the most money out of the situation. Let’s get started!
1. Not Researching the Selling Company
Sadly, there are a lot of scam artists that operate around timeshare owners. As such, it’s always best to have a bit of healthy skepticism for any company you contact. Make sure that you aren’t just taking the agent’s word that the company is legitimate.
Do your research instead. Check online and see what the average experience was like. We recommend checking out the company on the Better Business Bureau website.
If there are negative reviews or none at all, then these are signs that the company could likely be a scam. As such, we recommend going with a different one.
2. Signing an Exclusive Contract With a Selling Company
You should always avoid signing an exclusive contract with a seller. Why? Because this clause means that the company gets to collect a commission regardless of who sells the timeshare.
So, if you or someone else finds a buyer, then you will still need to pay them.
Instead, look for a selling company that provides an open listing. This means that if you find a seller you don’t owe anyone a commission for it. As such, it drastically opens up your different buying options.
3. Pricing the Timeshare Too Highly
Traditionally, most types of real estate increase in value over time. Sadly, the same isn’t true for timeshare properties. The reality is that timeshare properties are extremely difficult to sell.
As such, buyers aren’t willing to pay as much for them. However, many sellers aren’t willing to admit this. No one likes losing money on a deal. But sadly, if you want out of your timeshare, then you’re going to need to bite the bullet and accept the losses.
Typically, you can expect your timeshare to sell for between 10% to 40% of its original value. As such, it’s normal to end up losing money when you sell it. Because of this, you should think hard before selling it.
4. Paying Upfront Selling Fees
It’s common practice for sketchy timeshare companies to charge you a large, upfront fee before they even start selling it. Sadly, it’s not just sketchy timeshare sellers that do this these days. Plenty of legitimate sellers does too.
We prefer companies that only take a commission of whatever your timeshare is worth when they sell it. There are pros and cons to this method, but ultimately it encourages the seller to get a better price on the backend.
5. Not Going With Someone Who Specializes in Your Timeshare
It’s important to remember that not all timeshares are made the same. One example of this is Disney Vacation Club resorts or DVC timeshares for short.
Disney Vacation Club works similarly to regular timeshares in that it’s shared ownership, and the amount of time you get is determined by your owned shares. However, it gets complicated due to the points system that Disney introduces.
These points are used both to book vacations at resorts and also to pay for things in the park. As such, if you go with a traditional timeshare seller, then it’s not likely that they’ll understand this.
Instead, go with an agent that specializes in these types of properties and gets all the DVC sellers info. That way, you get the maximum return on your Disney Vacation Club property.
6. Putting Little Effort Into the Listing
If you want buyers to bid on your timeshare, then you’re going to need to make it sound as attractive as possible. This involves putting effort into both the description and the pictures.
Make sure that you go over all of the amenities that come with it. Highlight the great parts of the timeshare, and hide the not-so-great parts if you can.
After all, if you were selling a used car you wouldn’t take pictures of it while it’s dirty and trashed. The same goes for your timeshare.
7. Taking Direct Mail or Cold Calls Seriously
When you’re in the process of selling your timeshare you will likely receive a buy offer in the form of direct mail or a cold call. These unsolicited calls will typically make impossible promises, like selling your timeshare by tomorrow, or for more than it’s worth.
In return, all they need is a small listing fee. You must never pay this listing fee. These unsolicited calls are all 100% scams. Once you pay them the listing fee you’ll never hear from them again.
So, do yourself a favor and hang up as soon as one of these scammers contacts you.
Enjoy Learning About These Mistakes with Selling Timeshares? Keep Reading
We hope this article helped you learn some of the mistakes with selling timeshares. As you can see, there are a lot of obstacles that appear in the way of selling a timeshare.
But, as long as you follow the advice on this list (and keep your selling expectations low), then you’re sure to succeed.
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