Timeshare resale

Overview

The timeshare industry is an important component of the national and global travel industry.
Millions of households in the U.S. have purchased one or more types of shared vacation ownership at thousands of resorts located in popular domestic and worldwide vacation hot spots.

While many of them are completely happy with their purchase, the market is nonetheless swamped with vacation property owners who no longer wish to use it.
Many consumers are trying to exit their timeshare agreement obligations for a variety of reasons and simply move on in life.

Some wish to sell due to lack of use, tough economic times, buyer’s remorse, or in order to stop paying the ever-increasing yearly maintenance fees.
Others are selling due to age, family, health or lifestyle related changes or due to a variety of other circumstances which lead them to get rid of their ownership altogether.

Some of the big names in this market include:

• Bluegreen Resorts
• Diamond Resorts International
• Disney Vacation Club (DVC)
• Hilton Grand Vacations Club
• Hyatt Vacation Club
• Interval International
• Marriott Vacation Club
• RCI
• Ritz-Carlton Club
• Starwood Vacation Ownership
• Westgate Resorts
• Wyndham Vacation Ownership

The main timeshare brands that dominate the industry do not offer good buyback options.
Timeshare resale companies take advantage of this clear market gap and are generally divided into two main types.

Some offer advertising services that enable owners to expose their property on online advertising platforms or virtual marketplaces and get purchase offers directly from potential buyers.

These websites enable owners to purchase a for-sale-by-owner listing and showcase their unit to a global audience of interested buyers and renters.
This method allows sellers to take complete control of the entire sales process and complete the transaction independently.

Alternatively, full-service timeshare brokerage companies provide clients who wish to buy, sell, or rent timeshares professional solutions given by licensed real-estate agents.

The services they provide may include providing initial resale value estimates, communicating and negotiating with prospective buyers on the seller’s behalf, completion of the sales contracts, escrow account setup, connecting the client with a closing company to handle the transfer, insider knowledge, in-depth understanding of the industry, support and personal assistance through every step of the resale process.

In addition, timeshare brokers advise their clients on how to price their timeshare properties in order to sell them at or near the realistic market value of the property, which is largely based on supply and demand.

At the other end of the equation, timeshare buyers on the secondary market can get a great deal and save a lot of money, as premium vacation properties in top destinations around the world are typically priced significantly below their original “retail” value that includes a substantial markup in pricing in order to cover the massive sales and marketing costs.

In fact, buying resales at a fraction of the developer’s or resort’s price is the main incentive for discount opportunity seekers and bargain hunters: the same resort, unit, luxurious amenities and week can be purchased for much less.

Consumer Tips: How to Avoid Timeshare Resale Scams Online

Just like any other sector that involves sellers, buyers, and money that switches hands, the timeshare resale market also has its fair share of scammers, fraudsters and illegitimate companies that operate online and look for potential victims.

Scammers use many illegal, unethical or dishonest ways to trick owners who are often desperate to sell or even give away their unwanted intervals in a saturated market where supply is much greater than demand.

Some scammers charge high up-front fees and do very little or nothing for the seller, simply walking away with the money while the sale never goes through.
Many of them target likely sellers of timeshares, take advantage of their situation, and claim to have a serious buyer who is ready to purchase the property or promise they can sell it quickly for a good price.

Other con artists may masquerade as employees of legitimate and reputable companies.
They often contact consumers and pose as representatives of a well-respected resale company in an effort to leverage its reputation and earn the target victim’s trust, deceiving them more easily.

Another type of scam includes firms that offer to relieve the client of his/her timeshare in return for a substantial fee but then failing to follow through with their promises.
After getting the payment, they never transfer the timeshare ownership, leaving the defrauded client high and dry, remaining responsible for the unwanted unit and all associated fees.

These unscrupulous fraud organizations go by many names, such as timeshare postcard, cancellation, relief, rescue or disposal companies.

Taking these steps will help you find more credible and reliable specialized businesses that provide real, valuable services:

Do Not Pay an Upfront Fee

Avoid companies that charge up-front fees to cover alleged marketing or closing costs, registration fees, taxes, timeshare maintenance or other transaction-related expenses.

Legitimate full-service resellers earn their commission at closing, only when the property actually sells.
Businesses in this industry are not supposed to get paid until the transaction between the seller and buyer is successfully completed.

In fact, some states have laws which prohibit timeshare resellers from collecting any advance fees.
In addition, never pay anyone through untraceable forms of payment, such as wire transfers or cash.

Avoid Unsolicited Offers

Do not use resale companies that contact clients through cold calling, email, or other unsolicited approaches.
Work with resellers with which you initiated the first contact.

Be Realistic

Exercise extreme caution and be skeptical of overly generous offers that do not make sense.
Fraudsters will usually offer target victims a too-good-to-be-true price for their unit, giving them the sense of an exceptional one-time opportunity.

Verify The Realtor’s Licensing

Before using the service of a timeshare resale broker, contact your state’s Real Estate Commission and make sure that he or she is properly licensed.

Understand what you’re Getting

A “timeshare resale company” is an umbrella term that may come in many variations, each offering its own business model and a unique combination of services.
Before starting to work with a certain service provider, request all information in writing and make sure you totally understand which services are included and which are not.

Don’t hire a company before having a contract that details all the services the broker will provide, refund policies as well as the fees, commissions, and other types of payments you’ll have to make and when.
In addition, make sure the contract doesn’t hide any ‘fine print’ clauses that you’re not comfortable with and consider having the papers reviewed by an attorney.

Investigate the Timeshare Resale Company’s BBB Record

Check the company’s record on the Better Business Bureau’s website.
What you’ll find there will help you to evaluate whether it’s a legitimate business that deserves your money and trust or if you must look elsewhere.

Look for current BBB rating, customer reviews, complaints, warnings and alerts on their business profile.
In addition, learn how long it has been in business – a potential indicator of experience and reputation.

If the business is not even listed with the BBB, this is a very bad sign.
On the other hand, if the timeshare reseller is certified as a BBB Accredited Business, it’s an important positive signal.

Pay Close Attention to Red Flags

Learn how to protect yourself better when shopping on the internet, to avoid scammers, and to keep safe in general.
Knowing how to check if a website is legitimate or not is the first line of defense.