Cold Hard Facts about Selling Your Timeshare

TimeshareUK.com

Home > Timeshare > Selling Your Timeshare

Cold Hard Facts about Selling Your Timeshare.

This article was posted on Timeshare User Group noticeboards in 1995. It is reproduced here to warn people about the difficulties of reselling. Buyers should seek out second-hand buyers to avoid the marketing overheads which the developers pile on top of the basic cost of timeshare units.

I hate to be the bearer of bad news but reselling a timeshare is very, very difficult and in some cases almost impossible.

Why is selling a timeshare so tough?

The main reason is supply and demand. The supply of timeshare resales greatly exceeds the demand for resales.

Remember how you got involved in timeshares?

It was probably in response to a promotional offering with some type of free gifts or vacations. Then, you where probably only informed about the developer's property and prices. Nothing at all about resales, even if they were available at the same resort. The developer spends between USD2,000 to USD5,000 just to sell each unit at a new resort. Then because of their over inflated prices and high pressure sales tactics, many people buy without really knowing what they are getting involved in. Being shown a book full of 1000's of resorts and being told they could trade to any of them they wanted. No wonder so many timeshare owners get discouraged and want out.... creating the glut of supply.

My first timeshare presentation

I know my first presentation was for a Free telephone to view what turned out to be a less than desirable resort, where all the salesman talked about was all the other great resorts I could trade for. He even said I would never have to use their resort which was actually a rundown converted hotel, but just trade to all these other places ( spending almost 30 minutes just pointing out wonderful resorts in the RCI book) anytime I wanted. Fortunately, I smelled a rat and didn't buy there. So I know where many of the bad feelings and disillusioned timeshare owners come from. Especially, after finding out that not only could they not trade into all these great resorts but if they wanted to sell their units they would probably only get about half of what they paid for them and that was if they could find a buyer. So much for the great real estate investment angle to the sale presentation.

The Demand Side

Unfortunately, the demand side is just as bad for timeshare resellers. Most people don't even know there is a resales market available until after they buy from the developer. Those who do know about the resale market are usually the more experienced timeshare owners and are only looking for real bargains.

Factors in Selling

So where does that leave the timeshare reseller! Of all the factors (price, location, time of year, amenities, quality of resort, advertising etc.) that determine if and when a timeshare will sell, you can only control two factors .....Advertising & PRICE! Unfortunately you can't spend $1000 on dinner and gifts for your prospects as the developer did for you. The developer is spreading his cost over 100's or 1000's of units and is inflating the price to cover the cost ( which he can get because new buyer don't know any better). On the other hand, you are trying to sell just one unit to someone who knows about resales, is educated about timesharing and is comparative shopping among hundreds of like offers available.

So what do you do?

First you must price your unit competitively if you really want to sell it. Check the prices of other resales at your resort (the final sales prices, not the for sales listings), see what the final prices was at the auctions and contact resale brokers for more pricing info about your unit.

Advertising

Then you must use cost effective advertising to inform the public of your offer. If you are reading this article it means you have computer access to the Internet. Post as many ads as you can on the FREE Internet sections which will allow it (rec.travel. marketplace, alt.for.sales, etc.). Many new web site offer free classified ads when they start-up. Most of the On line services (Podigy, AOL, etc.) have free or low cost classifieds. Our TUG classifieds is probably one of the best places for timeshare ads at only $3.33 per month because everyone who reads it is interested in timeshares either for sale or rent ...a major plus.

More Advertising

Also contact your home resort, see if they have a public bulletin board in their lobby or elevators where you can post a for sale note ... this is very good because any renter using the resort who likes it will be interested in your offer. Check on posting an ad in the resort's newsletter, many happy owners are looking for extra weeks at their home resort if the price is right.

Resale Brokers

Timeshare resale brokers (deal only with licensed real estate brokers) can also get you more exposure but you must pay for it. All charge either an up front advertising (listing fee) and/or a commission on the sale. Remember, you are paying for the extra exposure and their services, however, if you do not price your unit right ... no one will ever be able to sell it for you. One of the reasons they charge an up front fee is too many owners want to list their units at prices higher than the market and they will never sell. Maybe, they should be told it will not sell at that price and have their listings refused instead. No one wants to hear the real truth. So instead, they will go on for months and even years of not selling their properties, until it finally they get realistic prices and start developing interest in their units.

I see ads on our TUG classifieds that are just unreal, but for little or no cost, most feel they might get lucky. Then after 3 months of advertising when it comes time to renew, they wonder why they didn't sell their units or only got a few, if any responses from their ad.

Now You Know

I know this article is very depressing for those trying to sell timeshares, but hopefully by knowing the truth about the real situation, you will be able to act accordingly. Whether that means just keeping your units and learning how to best use them, or trying to price them more realistically and increase your avenues of more low cost exposure. At least now someone has been honest with you about the timeshare resales and you now know where you stand and what must be done.

Oct. 95.

Timeshare Users Group © Copyright 1995 PO Box 1442, Orange Park, Fl 32067