Timeshare purchases often occur during a magical vacation experience, with buyers being enticed by the prospect of enjoying an annual excursion to paradise. Back home, after a little time has passed, however, the reality of the situation may set in. This can lead to the desire to cancel a timeshare contract or otherwise get out from under the obligation.
In other cases, owners may enjoy their timeshare for years but, due to changing circumstances, find themselves needing to divest themselves of the property.
In either case, timeshare owners may consider selling their property on the open market. Unfortunately, the timeshare resale market is riddled with myths and misconceptions, many of which can lead to costly mistakes for both sellers.
Today, the experts at RFA Cancellation want to help debunk some of these myths and provide a clearer understanding of the timeshare resale market.
Myth No. 1: Timeshares Appreciate in Value
One of the most common myths is that timeshares are a sound financial investment. The belief is that these properties will appreciate in value over time. Unfortunately, this is simply not true in most cases.
Unlike traditional real estate investment properties, timeshares are designed for personal enjoyment – not financial gain. Consequently, they do not appreciate like traditional real estate investments. In fact, just the opposite is true for most owners. Factors such as aging properties, wear and tear, high maintenance fees and assessments, and increased availability of similar properties cause the actual value to depreciate.
Myth No. 2: Selling a Timeshare Recoups Your Investment
We have established that you are not likely to make a profit on a timeshare sale, as the value will likely not have increased during the time of your possession. But many timeshare owners are confident that, by selling their property, they will at least be able to recoup what they have invested in the property to date.
The reality is that timeshares on the resale market very rarely sell for as much as the original purchase price. You might also recall that your original purchase price included fees, real estate commissions and other expenses that you simply cannot pass along in a resale. You also will likely not be able to include any maintenance fees and assessments you have paid in your sales price – at least not if you hope to find a ready, willing and able buyer.
The bottom line is that, in reselling a timeshare, the odds are very good that you are going to lose money – potentially a significant sum.
Myth No. 3: Selling a Timeshare is Easy
Many timeshare owners believe that, once they decide to sell the property, they can do so easily. The reality is that the process can be highly complex and fraught with problems. You must decide whether you want to use a licensed real estate agent or broker, or whether you wish to list the property yourself on an existing online sales platform.
Using a licensed real estate agent might make the process easier for you. However, you typically will have to pay a commission to both your agent and the buyer’s agent. This makes the process even more costly to the seller. Selling the property yourself puts you in the position of having to deal with all of the legal aspects of the process, which potentially includes figuring out transfer fees, title issues and other complex factors.
Myth No. 4: Selling a Timeshare Is Fast
Much like the myth that selling a timeshare is easy, the misconception that the process will go quickly is another potential hurdle for property owners. Finding a buyer can be especially time-consuming, as the market typically has many more sellers than buyers. This factor means that your property must stand out above the competition in some way – and usually that way means offering it for the lowest possible price.
If you aren’t willing to reduce your property’s sale price – usually to a number that is significantly less than you have invested – you can count on the property languishing on the market for months or even years.
Myth No. 5: Timeshare Resale Companies are All Legitimate
The timeshare resale market is, unfortunately, a potential minefield of scams.
Although there are many upstanding resale companies in the industry, many are simply after your money. The most common of these types of scams involves the payment of an upfront fee to sell your property. You might reasonably believe that this guarantees your sale but, in most cases, that’s simply not true.
Check out any potential resale company very carefully, including ratings, reviews, licensure, etc.
Myth No. 6: You Don’t Need Legal Advice on Selling a Timeshare
Before you undertake a timeshare resale, do yourself a favor and get advice from a qualified timeshare cancellation service or timeshare attorney. You might be surprised to learn that you have other options and alternatives to a timeshare sale.
RFA Cancellation helps people every day, solving problems just like yours. We have a dedicated team of experts who are standing by to provide assistance to timeshare owners who simply do not want – or cannot afford – to continue with timeshare ownership. Contact us now to learn more about your options for timeshare cancellation.