The Truth about Selling Timeshare
< BackSelling your timeshare is complicated, in fact it can be down-right difficult. This article may challenge your beliefs about timeshare, but with knowledge comes power. For the truth about the market (the good, the bad, and the ugly) keep reading for real insights into selling timeshare! We won't over-simplify the facts by using absolutes like 'always' and 'never' - these ignore the very nature of timeshare itself: Timeshare is not a static product, and any true understanding of selling timeshare must consider its dynamic nature. Knowing the truth is the only way to avoid losing a small fortune when selling a timeshare.
Are timeshares difficult to sell?
Some timeshares are quite difficult to sell, but most can be sold fairly easily if you understand the market. Many people mistakenly believe timeshare relates in some way to the traditional real estate market; it does not. Factors that affect timeshare values have no bearing on general real estate, and vice versa. For instance, the 'brand' of your timeshare matters a lot: Marriott and Hyatt timeshares have consistently had high resale values. Additionally, the nightly hotel room rates where your timeshare is located have a huge impact on selling your timeshare: The more expensive hotels are, the clearer the value of buying timeshare at that location.
People's perceptions are a deciding factor in whether or not selling your timeshare will be difficult. Someone who recently attended a sales presentation at your resort, viewed the property and amenities, and heard the retail prices will have a higher perception of value than another owner like yourself, who has experienced both the good and bad aspects of owning there.
If something sounds too good to be true, you need to slow down and investigate: check references, verify information, and SLEEP ON IT.
Other Factors Involved in Selling Timeshare
Stop and consider a moment, 'where does the demand for timeshare come from?' Most people don't wake up and just decide to buy timeshare. In marketing, we call the demand for timeshare 'artificial demand.' This is because the resort developers create demand by conducting timeshare tours. If you had never taken a timeshare tour, you wouldn't be reading this now.
As a timeshare resort is being sold, there is a continuous tour flow of potential buyers. While most come just for the free gift, a percentage will be seriously interested; they will either buy or want to buy. This is the pool of potential resale buyers for your timeshare resale - If you can reach them, you can sell your timeshare without taking a huge loss. Fortunately, today there's the internet, smart phones, and myriad other means to reach just about anyone! Demand, however, like everything else in timeshare is far from static. To paraphrase a bit, 'as the resort developer giveth, so the resort developer taketh away.' In other words, when the tour flow at your resort has stopped, your timeshare will immediately drop in value.
Can I sell my timeshare without paying upfront?
This is the goal of most owners, and there are a few ways this can be done:
1. If your resort is no longer selling 'new' timeshares, there may be an on-site broker handling resales on a commission basis. This is the absolute best approach to selling timeshare, but if your resort is still actively selling, resale programs are seen as competition and rarely permitted.
2. Create some attractive flyers describing your timeshare and place them on a billboard at work, at Church, at the grocery store, wherever. (If you're willing to risk a fine from your resort's HOA, stick them on the windshields of cars in the parking lot of the sales center!) Many owners have been successful in selling their own timeshares, but it will require some work, and, of course, some of your valuable time.
3. Use Craigslist.com - This free classified site will allow you to post almost anything for sale, and reaches a fairly large audience. Since the price is right, it's definitely worth giving this a try. Be prepared for people who want to meet you in person, since dealing 'locally' is a key element of the site's appeal. If you choose to post your phone number, expect to receive telemarketing calls from timeshare companies (and then to hang up right away.)
Beyond these steps, the truth is that you will be paying to advertise your timeshare. The decision will be whom to pay, and how much to spend.
Advertising Your Timeshare
The truth is, 'you get what you pay for.' Remember the free gift you got for taking the timeshare tour? It's time to get realistic about how much advertising you need to sell your timeshare, and how much it should cost. Go to your favorite search engine, and search the name of your resort (or your resort name and 'timeshare'.) Note how many results come up. For most resorts, there will be tens of thousands of results, but if there are only a few hundred maybe a simple online classified ad will work to sell your timeshare. Studies have shown that the vast majority of online searchers never make it to the second page of results, so the true secret to selling your timeshare is to get it on the first page.
If you are looking at thousands of results for your timeshare name, then you can be sure each of the ten first page results is inherently valuable. One might even say invaluable since search engine results cannot be bought. They are the result of thousands of hours of research, very complex algorithms, and impeccable timing. Do you think it's realistic that an advertising company, having obtained a first page listing for your resort name, can advertise your property there for under $100? If they did, how many listings at your resort would they have to sell to break even, let alone make a profit?
Deciding Who to Trust
There are countless sites across the internet that will tell you not to pay more than $50 to advertise your timeshare (though they change this amount from time to time arbitrarily.) Many others will tell you never to pay to advertise your timeshare; they suggest using a real estate broker who works on commission. Not once, however, do these 'helpful' sites actually provide you a link to a real estate broker that will advertise your timeshare for you without an upfront fee! The truth is that if you want to sell the timeshare at a fair price, you need to get it in front of buyers as economically as possible. This figure may well be different for every timeshare.
If you take your time and investigate where your timeshare will be the most visible, with a credible company, then chances are you'll get the timeshare sold. Avoid advertising in venues with unnecessary negativity, as this might influence your buyer. Steer clear of sites that require a buyer to 'register' or pay a fee simply to contact you about your timeshare; chances are the buyer will just move on to the next site. Finally, if you're serious about selling the timeshare, don't wait until the resort is sold out and the demand for your timeshare is nonexistent. Good luck on your quest!
