“A timeshares value is solely determined by what others are willing to pay for it, not what the property is listed for. Extreme market saturation and poor performance has led to a surplus of timeshare resales sure to pass on to the heirs of the current holders…“
A luxurious Marriott Timeshare Sells on eBay for only $1 (above)
A popular ‘Sell My Timeshare’ website has over 10,450 people trying to sell their timeshare - in Florida alone! (above)
Google results list over 495,000 different “timeshare resale websites” that have hundreds of thousands of weeks for sale (above)
“Many timeshare owners don’t realize the lies they were told about the resale market until years later when they first attempt to sell their timeshare…“
The first step in understanding if and how you are going to be able to sell your timeshare is to discover the value of your timeshare. How do you discover the value of your timeshare? The number one thing to remember is that value is only what someone else will pay for your item. I can not reinforce this statement enough when dealing with timeshare values. Your timeshare is only worth what someone else is willing to pay for it. That’s it. Your timeshare is NOT worth what you paid for it at the resort. Your timeshare is NOT worth what you see others “selling” their timeshare for online. Your timeshare is only worth what people are actually BUYING a similar timeshare for. These absolute truths must be kept in mind when considering timeshare resales on the timeshare secondary market.
The “Redemption and Release Timeshare Resale Industry Analysis Report – 2011″ states its belief that roughly 88% of all timeshares on the resale market have an actual value of less than $200. Even at this low price, maintenance fees and transfer fees become prohibitive for most to ever sell. These factors lead to most timeshare owners never being able to sell their timeshare and paying rising annual fees indefinitely.
Once you have discovered what your timeshare value is, it is time to advertise. The key to successful advertisement is to network aggressively in your local community. Once you have determined your sales price (based on your research above) we suggest drafting up a few hundred For Sale flyers. These timeshare resale flyers need to be well designed with “loud” lettering and big bold prices and action phrases like “ACT NOW”. Also, make sure you cut pull-off-tags with your phone number on the bottom of each of your flyers. The objective here is to advertise locally in your community to persons without a computer! The only realistic chance you have to sell your timeshare in todays age is to find someone at church, at work, or at the local hang out, that does not use computers very efficiently. By doing this you have the ability to share your timeshare ownership liquidation opportunity with someone who otherwise would never know how to purchase a timeshare except for at the resort. You can literally save someone who doesn’t use a computer tens of thousands of dollars by advertising your timeshare for sale locally in the community and keeping your prospective client from the depressed timeshare secondary market that is exposed online. Keep your patience though, you will have many people calling just to inquire and never actually want to purchase it as well as your share of prank calls. However, if you aggressively market in your local area and post flyers around town you may just have a chance to sell your timeshare on your own.
We hope this in-depth analysis of the timeshare secondary market has helped educate you on the factors affecting your chances of selling your timeshare. Redemption and Release, LLC strives to provide our clients with exceptional value with our Free Timeshare Help Articles and also with our Timeshare Redemption services. If you would like to be done with your timeshare permanently and without any of the headache listed in this article, contact us and it would be our pleasure to discuss our 100% guaranteed Timeshare Redemption services.
Transcript from video above:
Female: The Dow Jones tumbled again today, closing down 338 points for the day and 5% for the week. But it isn’t just the market that has some people worrying in these days of counting every dollar. Lots of people are worrying about their timeshare investments. 4.7 million people have these often-wonderful vacation retreats that can turn into terrible financial headaches. It was a $10.6 billion industry last year; and, as Vicky Mayberry discovered, once you get a timeshare, it’s often not easy to get rid of it.
Vicky: Ah, timeshares. Who has a dream of owning a little slice of paradise for one week a year for the rest of your life? Our family used to take vacations with my Aunt Liz to her timeshares, until one day a few months ago Aunt Liz called to report that her piece of paradise had suddenly become a financial purgatory. Her maintenance fees, once so reasonable, had crept up to $2500/yr. She couldn’t get out of her contract.
So I started researching how to sell this asset that she thought was so valuable and discovered it was worth almost nothing. Timeshares matching what she bought four years ago for $55K were going for about $5K online.
Brian: When you talk about a timeshare as an investment, it’s really a poor word and I apologize for using that, because you’re never going to make money on a timeshare.
Vicky: The search led me to Brian Rogers, who runs the Timeshares Users Group or T.U.G. website.
Brian: It’s just a simple fact of life that once you purchase a timeshare, by and large the minute you walk out of that door unlike a car which would depreciate 15%, that timeshare’s already depreciated over 50% or more.
Vicky: Both Brian and ARDA the group representing resort developers told me that timeshares should not be bought as financial investment. The value is in the enjoyment you get from them, but that’s it. There are still people who love their timeshares.
Vicky: There are people who are very happy timeshare owners.
Vicky: It’s not that people are unhappy with timeshares. They find out later down the road that, when they try to sell it, that their timeshare is worth next to nothing, or certainly nowhere near where what they paid for. Shocked, I blogged about it and found plenty of people with timeshare nightmares. One of them was Nancy Boggs, the cousin of a cousin who told us she had been tempted and gave in.
Nancy: Well unfortunately, I don’t know if you know this, but I bought two.
Vicky: Not once, but twice.
Nancy: The first one that I bought, I think it was like $11.5K — the one in Maui.
Vicky: You’re on vacation. What do you think came over you in that week?
Nancy: The glory of relaxation is what came over me. It was just such a wonderful, beautiful place. I was tired. I worked so hard. And just to have an experience at a beautiful place with palm trees and beautiful weather and nice people. It was just something I never wanted to end.
Vicky: The human tendency to be lulled by the waves, sun, sand, and the sunsets into wanting that endless vacation is what rakes billions of dollars each year for the timeshare industry.
Nancy: They bring you into this room. There’s lots of balloons. It’s like a big party atmosphere. There’s even bells ringing in the background and [3:25] horns honking, people screaming — screaming delightful screams. I mean happy screams like Mr. and Mrs. So-and-So just invested in the happiness of their family, or something like that.
Vicky: And before you know it, you’ve plunked down $10/$20/$50K toward the happiness of your family. Nancy eventually sold Hawaii she belatedly realized it was pretty impractical to get the family together to make an annual pilgrimage from the Mid West to Hawaii, but then she fell in love again….
[Advertisement : Cancun]
Vicky: with Cancun, and wrote them a check for $13.5K.
Nancy: Yes, unfortunately, I did.
Vicky: How much was the maintenance?
Nancy: It was a couple of hundred dollars a month, until there was a hurricane.
Vicky: A hurricane that she says damaged the timeshare so much, she couldn’t go there, but the company charged a special assessment.
Nancy: Once the hurricane came, then it went from like $150 (something like that) to like $500/month.
Vicky: A month?
Nancy: A month, because they had to rebuild everything. It was a huge place.
Vicky: And then you can’t even use it.
Nancy: Can’t use it while they’re rebuilding; and even if there were other places that you could use, you don’t know what the place is like. So it just turned out to be a horrible waste of my money. I would’ve done just as well if I just take a stack of money and just light a match to it.
Vicky: Nancy tried to give her timeshare to a charity, but they didn’t want it. Finally she paid an agency $2K to take it off her hands. Brian Rogers says about half of T.U.G.’s 30,000 members join so they can sell their timeshare. It’s a rude awakening.
Brian: They discover that it’s extremely, extremely hard to sell a timeshare and that’s because there’s so many more sellers than buyers.
Vicky: You can find second hand timeshares all over the internet. The are hundreds on T.U.G. sites and more on eBay. But the people are still walking in there and buying it new at $15K even though you’re saying they could look on the internet, they can look on your site and they can get it for half price or less?
Vicky: Why aren’t people buying from the resale market?
Brian: Knowledge. People do not that a resale market for timeshares even exists.
Vicky: One of the big selling points is that, not only do you have as investment for the rest of your life, but you can pass it on to your heirs. The double-edged sword is what if your heirs don’t want it?
Brian: A lot of these are deeded properties. It’s just like buying a house. So when you get this deed, it goes into your family. If you were to pass away and your children were to inherit your estate, that is part of your estate.
Vicky: Becky Greiber’s parents loved their place at Christmas Mountains in the Wisconsin Dells, but now they’re in their 80s and don’t go as often. They gave Becky that part of her inheritance early.
Becky: I think it was very nice of them to offer it to us and I know that it was a headache for them, so I’m glad to take it over for them, but it really has been stressful trying to figure out how to sell it.
[Advertisement : Turn it into cash. Call timeshares only. We got rid of those maintenance fees]
Vicky: There are companies who advertise all over late night TV and the internet who will sell your unwanted timeshare for you. Becky says as soon as word got out she was inundated with offers from these kinds of firms offering to sell her timeshare for her if she paid them hundreds of dollars upfront.
Becky: I got a call just today asking if I had a timeshare for sale, and I said I did. I said — but I’m not willing to pay any money upfront. I’m only interested in paying commission after I sell the property and she hung up.
Vicky: ARDA, the industry group, admits that the resale market is not what they call mature yet. As for Brian, he’s a happy timeshare owner who just paid a lot less for his, because, you guessed it, he bought it on the resale market.
Brian: But if you buy a timeshare, you need to know absolutely buy resale. If you can buy anything to take away from the timeshare purchase is to research the resale market and find out if you can get a much better deal on the resale market, which 99 times out of 100 you’ll be able to.
Vicky: But the other thing is you’ve got to know, when you buy this, you’re buying it forever.
Brian: That’s exactly right.
Vicky: …and you don’t know what the fees are going to be 10 years from the time of purchase.
Brian: That’s exactly right. That’s why you can never, ever have enough information about what you’re about to purchase versus going in and getting caught up in the moment, signing your name on the dotted line and being stuck with that piece of paper, that contract for the rest of your life.
Vicky: And your children’s life.
Brian: And your children’s life, absolutely.
Vicky: This is Vicky Mayberry for Nightline on a beautiful beach, just before sunset in St. Augustine, FL.
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