Monthly Archives: August 2019

The Questions You MUST Ask Timeshare Re-sale Companies

We have written this post as a caveat relating to the recent timeshare exit scams emerging everywhere around the world.

In doing so, we hope to make people aware of how unscrupulous agents are promising to represent timeshare owners in negotiations with potential buyers only to collect upfront payments and disappear into thin air.

If you own a timeshare and are thinking of contacting a resale agency or have already been contacted by one, we highlight below the things you should look into to make sure you are not dealing with a scammer and prevent having any financial losses.

First and foremost, if you are wanting to sell your timeshare, it’s advisable to check with your company if they have a buy-back option. This is by far the best and safest way to exit your contract.

However, if this option is inexistent and you need to resort to a different arrangement, such as engaging with a resale agency, then consider the following checklist of questions you should make when contacting them, or vice-versa.

  • How long have they been in the market, and is this something you can check for yourself?
  • What services are they going to provide you, exactly?
  • What are their fees and commission rate?
  • Is the price for sale they’re suggesting in accordance with the market?
  • Do they offer any guarantees?
  • Is there any social proof that testifies to their legitimacy?
  • What’s the origin of their timeshare inventory?
  • What’s their method of sourcing potential buyers?
  • How do they market the timeshares they have for sale?
  • What happens if they don’t succeed in selling your timeshare?

Whilst these are simple questions, the answers provided may be purposefully intricate and confusing.

It’s important to request that everything conveyed during the conversation, especially the answers given to the questions above – and all other important questions asked – be put in writing to make the company accountable for their promises.

A reputable resale agency should see no problem in providing this information detailing every step of the timeshare sale process, including what’s due to them once the deal has been finalized and their refund policy. On the contrary, if they fail to provide this information in written form, be wary in proceeding with them.

The Ultimate Guide For Selling Your Timeshare

Pricing Your Timeshare Correctly

Determining the price of sale of your timeshare in the aftermarket is a little bit tricky.

It all depends on how fast you want to sell and other factors such as the demand for the complex in which you have your timeshare, the holiday area, unit size, season, amenities and facilities in the complex.

A timeshare, if well maintained, does not have to lose its value over the years, as with other fixed assets. So it can be bought in the second-hand market as if it were from the developer, but with prices up to 75% below the original prices – if not more.

And potential buyers may have a preference to get their timeshares straight from the developers because they can see the complex beforehand, financing is usually offered and there is little risk of fraud.

The risks of buying a timeshare in the second-hand are well known.

The information provided by the seller may be false, the seller is not the legal owner, there are debts, the complex is in poor condition or suspended from the exchange companies.

In addition, potential buyers may not be able to see the complex prior to committing to a contract, increasing the chances of buying a timeshare that is much below the quality standards they are looking for. Which works against someone trying to sell their timeshare in the aftermarket.

So if you want to price your timeshare correctly, with better chances of getting the most out of the negotiation, the first thing to do is to research the market price of your property, comparing prices and the time of the year it is for sale.

Pricing Your Timeshare (Simulation)

A low price would be $2000 (you want to sell urgently);

A normal price would be $3500 (not in a hurry to sell);

A high price would be $5000 (wants to make a profit);

Now add $1000 For each bedroom; add another $1000 if it’s a highly requested complex (5 stars); finally, add $1000 per red week or if it’s a region with high demand.

Pricing Your Timeshare (Alternate)

If you want to get out of your timeshare without having a substantial loss, subtract 25% from the original price;

If not in a hurry to sell, subtract 25-50%;

If eager to sell, subtract 50-75%.

Developer prices range from $6000 – $15000 per week.

Resale companies

Lately, many companies have appeared that are supposedly engaged in the resale of timeshare. As you may be well aware by this stage, not all of them are serious and we recommend that you inform yourself well about the resale companies you might be considering to get assistance from.

Here are a few points to consider:

Where does their inventory of timeshares come from;

How do they find potential buyers;

What marketing strategy do they have? Mailing, phone calls, letters, programs with promotional stays, salesrooms, press advertisement;

Do they have satisfactory transaction references you can see and check for yourself;

What fees, deposits, and commissions do they get from you;

If they ask for money upfront, it should be a very small sum;

Commissions are usually 10-50%;

The price they suggest for sale;

The guarantees for sale they offer you;

If your timeshare is not sold, will they refund your initial deposit;

If you must pay fees, are they one-off fees or recurrent;

What other services will they give you, and are these services worth the money they ask for;

What experience do they have;

Will they rent out your weeks until they make a sale;

Finally, beware of companies that contact you unsolicited and promise fantastic prices that a supposed buyer is willing to pay.

Rentals

If for some reason you cannot go on vacation or need money, rent out your weeks.

To determine the price for the rental, find out about the prices of similar accommodation in the area in which you have your timeshare.

The price you ask for your timeshare should be below these prices, so it’s an interesting offer for prospects, but at the same time, it should cover the maintenance fee.

It is possible that a potential buyer of your timeshare would like to see the complex beforehand and rent it. Conversely, a rental might end up in a sale if the renter is pleased with the experience.