For many people, owning a timeshare is an enjoyable experience. Not only has it been a fun vacation destination but timeshares also provide an opportunity for family-centric travel. Some of our clients have said that one of the main benefits is the incentive to not only travel more often but to visit new places. The timeshare model works for people who don’t want the year-round responsibilities of owning a vacation property and would rather “pay for what they use.”
Despite all of the benefits, you may be at a point where your travel ambitions have changed. Most timeshare owners know that getting out of your timeshare contract is not as easy as it once was. Many people have the same idea as you and the supply of properties have been growing more than the demand. So, what can you do to improve your chances of successfully transitioning your timeshare?
Contact your timeshare company and ask about your options
With any luck, your HOA or timeshare company will have a resale program to help owners sell or give away their timeshare. There may also be a deed surrender option but these have become rare in recent years. As timeshare companies experience more contract defaults and cancellations, the effort to keep you in your contract has become a focus. Providing you easy access to resources does not help their cause but they should certainly explain your options. It is likely that you will be referred to a real estate agent if selling is the route for you.
Check the marketability of your timeshare
As with many challenges in today’s world, new technology has come along to help and timeshare transactions are not an exception.
RedWeek is an online timeshare marketplace where you can sell, rent and even give away your timeshare. The site has plenty of information about how to sell or get out of contracts with specific resorts or companies as well as a full marketplace.
Sharket is a Florida-specific site that provides information on millions of timeshare resales to help you find an estimate of the value of your contract.
The Timeshare Users Group (TUG) provides a vast array of useful information for timeshare owners as well as a marketplace for renting and selling.
Contact a real estate agent that specializes in timeshares
For those not comfortable with listing their timeshare online, speaking with a real estate agent who is a member of the Licensed Timeshare Retail Brokers Association(LTRBA) is important. These agents can typically help you with valuing your timeshare and take it to market. Generally, these agents specialize in timeshares that are a part of the large resort brands (Hyatt, Hilton, etc.) and charge commissions that can be significantly higher than those of residential real estate agents.
Explore giving your timeshare contract away
After finding that the marketability and value of your timeshare is less than expected, giving the contract away may seem like a viable option. Several of our clients have decided on this route rather than the logistics and frustrations of selling. Considering that the best market for your timeshare may be with your friends and family, it could be a good option. Giving the timeshare to children, adult grandchildren or other family that have the time to travel and can afford the maintenance fees can be a win-win for everyone involved as long as all fees and requirements of the new owners are disclosed. Consulting with a real estate attorney to draw up the contract may be a good idea.
Avoid scams
As with many good things (especially those that involve seniors) scams are rampant in the timeshare market. They know that many people are looking for an easy out from their timeshare contract and they are happy to provide you the opportunity to do so for what seems like a reasonable fee! These schemes are constantly changing so it is difficult to identify specific scams or situations to avoid. However, a general rule-of-thumb is to avoid paying up-front fees to any person or company who claims to be able to sell your timeshare. Many of these scams are advertised by mailers or phone calls so be sure to do your research before replying to an ad or cold call.