How to sell your timeshare yourself
If you intend to sell your timeshare and do not know where to start, this article is for you. Although timeshare resale is a very competitive market, the process of selling can easily be accomplished on your own.
Once you have put in place the following steps, the process of selling is half way done.
Five points come to mind:
- 1 - Know your product/know your buyer;
- 2 - Know the transfer procedures and associated costs;
- 3 - Know the comparables;
- 4 - Know how to price it accordingly;
- 5 - Know if you are up to do it yourself or not.
1. Know your product.
What do you own? We have had a lot of people contacting us not really understanding what timeshare program they own. Is it a fixed week or floating? Do you own a deed or a right to use? Is it annual, biennial, triennial? Even or odd years... How does your program work? Can you trade within the club or do you need to trade with an exchange company?
Once you advertise your program, chances are you will receive all kind of inquiries from 2 types of buyers: those who know your property and the mechanics of timeshare; and, 2) those who are interested but do not know how it works really. To avoid sounding like a broken record, you should know from the start who you are dealing with.
Type 1 buyers are mostly looking for a specific unit, or a week in that property, want to pay as little as possible (and want to know how can the transfer process be worked out between the two of you).
Type 2 buyers: You should be prepared to plainly explain the mechanics of the timeshare concept to first-time buyers; however, too much information may be confusing and you might lose their interest. Try to present your program in as relevant a manner to your buyer as possible. Therefore, your first challenge here is to establish a good rapport with your prospect and find out how your program can match his or her interests. Make sure what you’re explaining matches your buyer’s inquiry... If you get into lengthy explanations you can quickly lose his or her interest, therefore, give short and relevant answers to their questions. Ask questions to determine what your buyer needs is what you can offer.
2. Know the transfer procedures and associated costs.
Most developers would disclose such information at the time of purchase in your contract; however, it sometimes could be a grey zone. Therefore one of the first steps would be to check with your resort and find out what’s involved with the transfer of your ownership (try getting it in writing to keep as a reference). Secondly, your resort’s administration may be assisting owners and be willing to give information such as: has past resale transaction done lately? What kind of prices programs such as yours traded at? Was a resale company, if any, used to assist the sellers and if so, which one?
Thirdly, to know the procedures will tell you right from the start if you’re willing to tackle the process on your own. Some developers make it very restrictive and pricey and others make it very easy with hardly any additional fees. Once you know what’s involved, you should be prepared to deal with it to avoid burdening your buyer with such process that may appear overwhelming for a first time buyer.
3. Know the comparables.
Google your property. You’ll soon see what other travelers have reported on it. If you agree with the comments... then you’ll know how to present it to potential buyers. If you disagree ... Write your own comments and add pictures to support your points. These comments found on the net are always to be taken with a grain of salt. However, if they make your property look bad, something has to be done about it and as a member or owner, you should take the right initiative to present your timeshare property more accurately.
Refer your buyers to your resort’s website if they have one. If not, refer them to a website where your resort is shown... Add your own pictures showing the unit, the outdoor facilities and so on. Is the location of your property in high demand, when are its high and low times and the particular clientele enjoying this resort (popular for families, couples, golfers). Be prepared to outline the pros and cons of your resort.
4. Know how to price it accordingly.
You should be taking into consideration the annual fees or the maintenance fees. Low maintenance fees equal higher resale value. Now the question is: How do you qualify maintenance fees as high or low. Two ways: 1 – you could compare your maintenance fees (divided by 7 nights) to a hotel nightly stay rate in the area. Does your unit offer more amenities, space and comfort than that comparable hotel room? Yes? Then your maintenance fees could be qualified as low. 2 – if you have owned this property for several years, what percentage, would you say, has the average increase been over the past 5 to 10 years? Less than 5% per year as average is considered low and increases of over 6% is considered high.
In your asking price, you must factor in the additional transfer costs as well as the annual fee. Also, whoever enjoys the benefit of the Trade for the year should bear the cost of the annual fee for that year. Therefore, this can be added to your price or offered as an incentive. Lastly, will you transfer your Exchange Network membership as well as the deposited time in it? If so, keep in mind that these should not affect your asking price; however, it should be outlined as added benefits in buying your program and may help you close the sale.
5. Know if you’re up to the process or not.
Taking into consideration what you need to do, the cost of promoting and so on, are you up to doing it yourself? This will easily help you decide whether or not you would require assistance in selling. Another factor to take into consideration, the higher your asking price is, the more likely you will require assistance in collecting the money. You should know that most sale transfers fail to close when it comes time to collect the money. Be prepared to spend time screening the serious from the curious, and once you get a serious offer, know the possible avenues to assist you... a notary’s or a lawyer’s in-trust account, for example, will help reassure your buyer that his money is safe while the transfer process in underway.
These are the steps to know in selling your program. Are you confident enough to undertake them yourself?
Timesharing Style has designed its services to help timeshare sellers and buyers with the above process. What we offer are specialized advertising, marketing and rental services for timeshares owners wanting to sell and rent and timeshare buyers wanting to buy and rent. We create bilingual advertising in French and in English; promote your timeshare to interested buyers; assist clients with the transfer process; use an in-trust account that complies with the Quebec Consumer Protection Law; and provide you with any assistance you may require along the way.
For more information about buying or selling timeshares call toll free 1.866.769.5656 or click here...
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