Timeshares can be an excellent investment for the owners who use them regularly. However, like any other property, they come with financial responsibilities, including the maintenance fees that are due typically at the end of the year. These fees can become a financial burden for owners, particularly when they no longer utilize the timeshare.
If you are considering selling your timeshare, it would be beneficial to do so before your next maintenance fee is due. Thus, you will either avoid paying the next fee due, or have the opportunity to be reimbursed for your upcoming maintenance fees if they become due before the sale has closed.
In this article, we explore how you can successfully sell your timeshare without being responsible for the year’s maintenance fees. Let’s dive in!
The first step in selling your timeshare before maintenance fee due dates is knowing the next due date for fees. Each timeshare developer will provide owners a bill that includes details, such as when maintenance fees are due, what they cover, and any penalties for late or non-payment. Knowing these details will help plan your sale strategically.
Don’t wait until the last minute to start the process of selling your timeshare. Remember, the goal is to sell before your next maintenance fee is due. The earlier you start, the better your chances to complete the transfer process before fees are due. Keep in mind, it can take a few months to fully transfer and close the sale of a timeshare, depending on each timeshare ownership brand. It’s crucial to start marketing the timeshare on the resale market as soon as possible to timely find the right buyer and close before fees are due.
A key point for success in selling a timeshare is researching the value of the ownership on the resale market. Gaining the insight of what timeshares similar to yours are listed is a great starting point, but it is also important to note that listings are typically sold at below asking price – generally 10-30% below listing price.
Free Market Analysis
To get a realistic understanding of what your timeshare is worth on the resale market, we highly recommend to work with a knowledgable resale broker who has a track record of successfully selling your particular type of ownership. A broker with many years of experience selling ownerships similar to yours will be happy to offer a free market analysis to help set a realistic selling price for the ownership.
Listing the Timeshare for Sale at The Right Price
Setting the right price for your timeshare is critical in ensuring a successful and timely sale. If the price is too high, potential buyers may be motivated to purchase other competing listings. If it’s too low, you risk leaving money on the table. Consider consulting with an experienced timeshare resale broker to help determine a competitive price.
Navigating the timeshare resale market can be tricky, especially with the presence of scams that try to exploit sellers. One common scam is misrepresenting the resale value of the timeshare to be much higher than fair market value. These fraudulent companies then proceed to collect an upfront listing or processing fee.
However, it’s essential to remember that in any traditional real estate transaction, sellers should not be paying any fees upfront. Instead, a licensed broker who is paid from the proceeds of the sale should facilitate the transaction. Here are some tips to help you avoid the pitfalls when listing your timeshare for sale.
Be Skeptical of High Valuations
If a company promises a much higher resale value for your timeshare than what you see in the market, be skeptical. Scammers often use this tactic to lure in sellers. Always do your own research and consult with a reputable timeshare resale broker to get a realistic estimate of your timeshare’s value.
Avoid Upfront Fees
One of the most significant red flags when selling your timeshare is being asked to pay an upfront fee. Whether it’s called a “listing fee,” “processing fee,” or something else, such fees are usually a sign of a scam. Reputable brokers will only get paid once the sale is completed, and the payment will come from the sale proceeds.
Verify Broker Licensing
When choosing a broker to help sell your timeshare, it is recommended to verify their licensing with the state they operate in. Make sure they are licensed and have a good reputation in the industry. You can do this by checking online reviews, asking for references, or seeking recommendations from trusted sources.
Be Wary of High-Pressure Sales Tactics
Scammers often use high-pressure sales tactics to rush you into making decisions. If you feel rushed or pressured, take a step back and consider your options. A legitimate broker will understand the importance of this decision and give you the time and information you need to make the best decision.
Get Everything in Writing
Finally, ensure that all agreements are put in writing. This includes the purchase agreement contract that results from any offers you receive from potential buyers. Having everything in writing provides a record and helps protect your interests.
By being aware of these pitfalls and taking the necessary precautions, you can navigate the timeshare resale market confidently and safely. Remember, if something seems too good to be true, it probably is. Always trust your instincts and do your due diligence before making any decisions.
During the process of selling your timeshare, it is important to keep your account in good standing. This means that if there are any fees due, such as maintenance fees or special assessments, make sure to pay them promptly as required. Buyers can reimburse paid fees for the next use year when the ownership is sold and closed, so you will recover the fees.
Many timeshare developers have policies in place that prevent an owner from transferring the timeshare if their account is not in good standing. This could include unpaid fees, late charges, or other financial obligations related to the timeshare. Failure to maintain your account in good standing could potentially delay or even halt the sale of your timeshare.
Therefore, while navigating through the selling process, always ensure to settle any outstanding balances on your account. Doing so not only facilitates a smoother transaction but also maintains your reputation as a responsible timeshare owner.
Once your listing has attracted potential buyers, be prepared to negotiate. Flexibility can be key to closing a sale quickly.
Maintenance Fee Reimbursement
If the estimated closing date will take place after your next annual maintenance fee is due, and the upcoming year’s usage will be available for the buyer to use, ensure that you can be reimbursed for any maintenance fees you paid upfront for that upcoming usage.
Structuring The Purchase Agreement
Understanding how to structure the purchase agreement contract to protect the seller’s interests is a skill that is crucial in these situations. It is highly recommended to work with a seasoned resale broker who can prepare purchase documents adequately and advocate on your behalf during the process of negotiating the sale of your timeshare.
Finally, ensure you close the deal in a proper and legal manner. This involves transferring ownership legally and efficiently. Any reputable resale broker will require the use of a third party closing company to protect the legality of the transfer and the escrow of funds.
Using a Third-Party Closing Company
A closing company will work directly with the developer to ensure all requirements for transfer are met. The closing company will also hold funds in escrow and ensure the seller is paid their contracted proceeds once the sale has been closed. This ensures that both the buyer’s funds and the seller’s property are protected throughout the transfer process, and that the purchase agreement contract is upheld.
By selling your timeshare before the end of the year, you not only avoid the upcoming maintenance fees but also potentially offer the buyer usage for the next year. This can be an attractive proposition for buyers and could expedite the sale.
In conclusion, selling your timeshare before maintenance fee due date requires planning, research, and negotiation skills. But with the right approach, and with the help of a seasoned expert broker, it is definitely achievable.
If you need professional assistance, do not hesitate to contact our licensed agents. Our team possesses the expertise and resources to guide you through the process and help you achieve your goal.
Why Choose Premier Timeshare Resale?
Premier Timeshare Resale has over 20 years of marketing and sales experience! Our Licensed Real Estate Brokers are here to help you sell and we will ensure that the listing price of your ownership is the best the resale market has to offer.
Premier Timeshare Resale has a broad base of buyers and expertise with many vacation property brands, such as Marriott, Vistana, Westin, Hyatt, Hilton, Breckenridge Grand Vacations, Disney and many others.
