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.
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.
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.
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.
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.
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.
Sophia D'Souza is a Content Marketer, Blogger and Story Teller at Exit Timeshare Now. She enjoys connecting with people, keeping herself updated with the latest in the field of business, technology, travel & fashion and spending quality time with her family.
]]>Everyone wishes to have a timeshare property at their favorite vacation place. While it might be easy to purchase for quite a few, but for some it may be their lifetime savings or hard-earned money. So, nobody would love to invest their money in a losing proposition. Here we discuss just a few of the important problems you must don't overlook while acquiring a timeshare.
The first thing to do before acquiring any timeshare is to understand the types of timeshare. There are basically two types of timeshare plans.
A deeded plan, in which you really buy an item of real estate property and own it along with other owners but, you can use it only according to the timeshare agreement. A fixed unit, fixed seven days, deeded timeshare allows you to own a specific timeshare at a specific time annually. A floating time agreement allows you to be flexible about the dates that you can use your timeshare. But reservations may be only first come first serve as many owners would love to opt for that option.
Right to use timeshare or a non-deeded timeshare is a leased timeshare. Again, it is classified into fixed unit and floating time just as in the hold all of deeded timeshare. You no longer have rights to the property after the lease expires.
Before investing in a timeshare do your homework about the location first. Do a good research about the location, whether you can go there on an annual basis. Also, it wouldn't hurt if you research the prices of other alternative accommodations in that place. If you are paying for the timeshare then why buy timeshare if an alternative outlay you less. But at the same time, you should weigh in your comfort factor also. The alternative accommodation might not provide you with an identical comfort as the timeshare accommodation. So, it all depends on what criterion is important to you, cost or comfort.
Always determine your timeshare rights before purchasing. Your rights appear to be violated in a few cases. In most of the events the timeshare attributes are governed by legal documents referred to as Covenants, Codes, and Restrictions. It establishes rights for certain estate property owners and governs how the timeshare should be managed.
Also, important thing to think about before purchasing a timeshare is to decide whether you want to obtain it for vacation purpose only or as an investment. If you wish to purchase it as an investment you ought to rethink. Timeshares are not about the most lucrative properties for reselling. Generally, timeshare properties don't have good resale value and the resale is also challenging because of competition from the original vendor himself.
While you could think that the cost of obtaining a timeshare is simply the cost of purchasing only the real property. You might be wrong. Because you should always calculate the entire cost of timeshare which includes home loan repayments, maintenance fees, taxes, travel cost, closing cost, broker commissions, financing charges etc. That will certainly raise your hair. Compare the amount to be paid of alternative accommodation with the complete cost of owning a timeshare now. Attach to whichever is less expensive.
Also do not forget to read each and every document carefully before signing any agreement. Never ever believe on promises produced by word of mouth. Request everything in written. Also determine about the reputation of the seller and whether he is a licensed timeshare vender. Also never accept attributes with unfinished facilities, if you do so take a written commitment from the vendor that they might be finished within a specific time frame.
Author Bio
Sophia D'Souza is a Content Marketer, Blogger and Story Teller at Exit Timeshare Now. She enjoys connecting with people, keeping herself updated with the latest in the field of business, technology, travel & fashion and spending quality time with her family.
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