Free Market Solutions for Timeshare Resale, Part II

This is the second installment in a 3 part series where we’ll examine the current push for regulation of the timeshare resale industry.

Existing free market controls, already available to timeshare owners, offer the best solution to the problems facing the timeshare resale industry. By embracing and utilizing these controls, owners can improve the timeshare market far more effectively than additional government regulation would. Below are a few illustrations of free market activism:

Choosing a Timeshare Resale Company

In America, the most powerful market force is the consumer: He/She determines which companies thrive, and which companies fail, by deciding where to spend his money. By exercising caution when choosing a timeshare resale company, consumers can effectively 'vote' against unethical companies by
refusing to purchase their services.  Before agreeing to pay a fee to any resale company, consumers should understand what the fee is for, and review the relevant terms & conditions of the service.

If you're told there's already a buyer for your timeshare, don't walk - run away.

Unfortunately, as long there are owners are willing to pay companies claiming they 'already have a buyer lined up' for the timeshare,  there will be companies willing to take their money. Stop the cycle today: Vote against deceptive trade tactics by not falling for them.

If you're considering listing your timeshare with a resale company, review their marketing proposal carefully, and evaluate whether it makes sense:

Last week I got a call from one of our clients who needed advice concerning a call he'd received from a South Florida resale company. They claimed that by holding sales meetings with hundreds of interested buyers, they were selling lots of timeshares. This company assured him that their method was by far the most effective out there. - Stifling a chuckle,  I explained to the owner that resort developers typically spend $200 - $700 per family that tours the resort, and that roughly 10% normally buy timeshare. For the type of scenario this company was pitching to be true, their program would have to cost at least $2,000, however the charge was just $799. Fortunately, this owner did the right thing, and checked it out before spending his money - If it sounds too good to be true...

The hallmark of legitimate timeshare resale companies is acommitment to maintain high search engine rankings for the terms related to your resort. Think like a buyer: They have to find your listing to make you an offer.

Buying Timeshare from a Developer

There are many reasons to buy timeshare resale, but there are also some good reasons to buy from a developer. They include: the ability to buy pre-construction, lack of resale inventory, and easy financing for the credit challenged. If you decide to purchase from a developer, ask about the availability of resales, and evaluate their response. While many developers will answer honestly, others may disparage the resale market.

If the resort takes a negative view of resales while they're selling to you, imagine what would be said to your buyer when you're ready to sell. Simply put, if timeshare owners stop buying timeshare from developers that are not 'resale friendly,' the developers will either change or go out of business.  Vote with your wallet!

In the last installment of this article, we'll cover ways to handle conflicts with your resale company or resort privately, without risking damage to your resale value, and affecting the values of other owners at your resort.