Timeshares for Sale...

Hello, I'm Mike. I've been working in the timeshare industry for over 20 years. I've been the General Manager of a timeshare property, worked in the sales and marketing, built budgets for dozens of properties, even been the CFO and Executive Vice-President of a timeshare company.

I know what it's like when you try to buy or sell your timeshare. Let me share with you a little insight. Hopefully it will make your timeshare resale experience a little easier. Have a specific question - email me from my contact page..

How to Sell your Timeshare

There are many reasons people sell their timeshares - just like any other asset they may own. Searching the internet for timeshares for sale yields thousands of sites willing to help you. After more than 20 years in the timeshare industry let me give you some advice on how to approach selling your timeshare.

First, don't expect it to be a quick and painless process. Wait - that's not saying it can't be, just be prepared for it to take some time to find the right buyer. For most timeshare resales, patience and a little research can be worth thousands of dollars.

Many resorts, especially those still selling, have either a buy-back program or a resale program. Developers don't really want you to sell your timeshare but the intelligent ones realize it will happen. They know if there are a lot of timeshare resales at very low prices it will make it harder for them to sell their inventory. So, step one is to call your resort and ask them about resales. Do they assist? Do they have a bulletin board for owner listings? Do they have a buy-back program?

And while you are talking to them, ask if there is a real estate agent in the area that specializes in timeshare resales. Just like with your home it's best to have a local expert. Many areas that have multiple timeshare properties also have local timeshare resale specialists. The real estate agent will likely also know the required paperwork for your specific resort. That can save a lot of hassles when you do find a buyer.

If these options aren't available to you then it's time to head online. There are many timeshare resale websites and you really need to be cautious. I have a few favorites but I don't want you believing I'm trying to sell you something here. So I won't recommend any specific sites to you, I'll just give you advice.

When selecting an online timeshare resales company do your research. Try to find a company that has dealt with your resort before successfully. Face it, a company that specializes in Orlando properties isn't going to be much help for a timeshare in Idaho. Don't just pick the first site that looks pretty.

I don't ever recommend giving them money up front. Treat your timeshare resale like a real estate transaction. Expect the same service as from a real estate agent. Now, there are some sites that are just marketing sites that want money upfront. They certainly work for some sellers, but it leaves you to handle the paperwork. I personally don't like that option but it may be right for you.

There are two approaches to actually finding an online timeshare resale company. First, click on every one and read their materials. Call them and ask what they know about your resort and how they charge for their service. Interview them like you would interview a local real estate agent.

The second approach is act like a buyer. Do some web searches for timeshare resales in your resort and in the area. See which sites show up most frequently and check out the listing prices. Call these companies up and interview them. It takes a little time but can save you thousands of dollars.

Selling your timeshare doesn't have to be a painful process. Like most large transactions it can take a little time and effort to make sure you get a fair price. If you can take your time waiting for the right buyer you'll most likely get a much better price..

Before You Buy-Consider the Full Cost

When you are searching for timeshares for sale there is more to consider than just the purchase price. A timeshare is a long term commitment, just like a vacation home, and the ongoing expenses can vary dramtically. What may seem like a screaming deal on eBay could be a bottomless pit for many years to come.

Annual maintenance fees, capital reserves, real estate taxes, exchange company fees, special assessments, cleaning fees, etc. can vary dramtically from resort to resort. Let's look at the components of the true cost of buying a timeshare and how to control those costs.

Annual Maintenance fees (HOA fees) are what you will pay for operating and maintaining your timeshare unit. These fees will cover the costs of utilities, maintenance, management, employees and all the other day-to-day expenses of keeping the doors open. Make sure you get a copy if the annual budget before you commit to buying any timeshare for sale. The budget should show the totals for the property and the amount for each size of unit (a one-bedroom unit costs less than a two-bedroom unit).

Capital Reserves are money set aside for major expenses and renovations such as roofs, pools, room remodels and furniture replacements. Most timeshare resorts will collect money every year towards these items, save the money and then spend it when the major repair needs to be done. Other properties will wait until it's time to make the repair and then assess the timeshare owners. Again, the annual budget should show these items and the balance sheet should show how much cash is in the bank for capital items. Be wary of properties that spend this down to zero every year.

Real estate taxes are handled differently depending on the property and the location of the resort. Some places include real estate taxes in the normal annual budget as just another line item. In some states real estate taxes are billed directly to the timeshare owner. Make sure you ask which way this is done for the resort you are considering.

Some properties have cleaning fees or reservation fees for each stay at the property. This is not very frequent but you need to find out up front. Ask if there are any fees that need to be paid when you use your timeshare time. It's best to call the property directly and ask about these fees. Just tell them you are considering buying into their resort and want to know if there are any fees or expenses that need to be paid when you come for your vacation.

Last, when you look at the budget, look around for any "Developer Subsidy" type amounts. Some developers will artifically lower the maintenance fees while they are in the sales mode. This makes the property look cheaper to buyers that are on a classic timeshare tour. If the developer is paying for certain amenities or a portin of the operating expenses then somewhere down the road either fees will go up or services will go down.

When you add up all these various types of fees and charges you'll get your true annual cost of owning a timeshare. What you will find is that timeshares for sale of the same size will have dramatically different costs every year. Lower costs are not necessarily good or bad - you just want to make sure you know what the total amount will be before buying.

New or Resale?

You can find timeshares for sale by the developer or by individual timeshare owners, which one is best? There isn't an answer that works for all situations so let's look at the differences and why you would want to consider each option.

When a timeshare is in "selling mode" the developer of the property is actively selling units. Just imaging that John Doe is developing a 1,000 unit timeshare property and he has the first half built. Mr. Doe will be bringing in potential buyers, showing them around and offering new timeshare units for sale. Often times he will be offering incentives to people to not only tour but to buy.

One of the biggest incentives developers offer is financing. Timeshares can be pricey and getting financing from the bank isn't easy. Financing from the developer is usually available to hold down the initial cash outlay. If you are trying to get into vacation ownership with minimal upfront, this may be the way to go. But watch those developer interest rates, they can be pretty high.

Developers will also often times give you other incentives to buy through them. Besides the free air travel, dinners, jeep rides, etc. I've heard of them paying the annual dues for several years, exchange company upfront fees and offering extra free nights or weeks at their resort. You know you are paying for these in your purchase price - nothing is free - they can be nice add-ons at the time of purchase.

Some developers also have a different class of ownership for buying direct. Often times this will be discounts at facilities actually owned by the developer. Let's say in our John Doe example that Mr. Doe also built two restaurants and a golf course with his resort. He may offer a 15% discount to the restaurants and rounds of golf if you buy directly from him. If you buy a resale then you don't get that discount.

Now, buying a FSBO (For Sale By Owner) timeshare usually has one big advantage - cost. With some hunting you may be able to find an owner that no longer wants or can afford their timeshare. Depending on their situation and desire to unload the price can be significantly below the developer's price. This isn't always the case at very desirable resorts, but it's worth a few minutes of internet searching.

My suggestion, after over 20 years in the business, is to check out both options. Do the FSBO research and then go to the resort. Take the timeshare tour and see what the developer is offering. Be bold and ask the sales person why you should buy from the developer. Knowing what's available in the resale market will let you make the best decision for your personal situation.

Before You Buy - Decide What You Want

Timeshares are a great way to budget your vacation dollars, at least for a lot of people. Before you jump in and start looking at timeshares for sale, take a step back and consider a few personal preferences that will impact what you should buy. Let's look at how different timeshare properties and companies offer different ways for you to reserve your vacation usage.

Some properties are fixed time, fixed week properties where you have the same week every year in the same unit. For instance, owning week 25, unit 301 would mean you have unit 301 every year for the 25th week. The start day of the week is set for each unit, but they are usually either Friday, Saturday or Sunday. If unit 301's check-in day is Saturday, week 25 would start on the 25th Saturday of the year. This type of ownership is great if you want to go to the same place at the same time every year. For instance, you want to go skiing in Vail every year tight about the first week of March.

Floating time has become the most popular type of timeshares for sale in the industry. Typically these will be where you a buy a certain unit type (1 bedroom, 2 bedroom, etc) with a seasonal usage. Seasons are usually color coded and they relate to high, swing and off season at the property. If you buy a 2 bedroom floating time unit in high time, you will get to use the most desirable vacation time at the resort. However, read about floatng time reservations later in this artile.

Points systems have also become very popular. In a points system you buy a number of point that are spendable for stays. The number of points to stay any given night varies based season, size of unit, holidays and the resort. Often times these systems allow you to make reservations at some or any of the resorts managed by the company. These systems are very flexible but you need to look closely at the reservations system to make sure you understand what you are buying.

The reservations system and inveHow to Sell your Timesharentory availability are significant considerations when buying a timeshare. If you want to stay in a 2 bedroom unit on Virginia Beach but the resort there only has one unit Decide What You Want then competition can be fierce. For floating time it's usually bigger is better but there are so many differences it's not completely safe to generalize. When you have narrowed down your selection to a few timeshares for sale, do the independent research on how they take reservations.

So, before you buy, consider how you want to vacation. The usual trade-off is guaranteeing when you can go versus flexibility. Exchange companies can add flexibility to a fixed time purchase, but they also add cost. Floating time gives you flexibility but make sure you understand the rules governing reservations before you buy.

Timeshares For Sale: How to Buy and Sell

Timeshares for Sale...