Sept. 19, 2018
It always seems like a wonderful idea at the start , prepaid resort-style hotel rooms/condominiums in exotic locations, and you're always vacation ready. Then, reality sets in...the fees, the timing, the point systems, the HOA restrictions and then eventually you're asking yourself, "How do I get out of this timeshare obligation?"
What are the benefits of owning a timeshare?
If you want the assurance of having a vacation every year and feel that you need a little push to keep that commitment, timeshares are a great idea. In my case, when my kids were younger, we would always stay at a timeshare resort because we knew we would be getting great accommodations with all the amenities a young family needs - separate bedrooms, full kitchens, nice pool areas etc. However, we never owned a timeshare because we didn't want the commitment of paying a maintenance fee each year; instead, we would book them online with either VRBO or Expedia.
What do you actually own when you buy a timeshare?
In most cases, you own a deeded real estate asset, which means it's part of your estate - in perpetuity, forever.
What options are there for selling your timeshare?
Unfortunately, unless you own a fixed week at a high-end brand on the beach in Maui, there aren't any options to resell. There is a multitude of listing companies that will tell you they can sell your timeshare for thousands of dollars and that they have buyers waiting in the wings...however, the reality is very different. They'll charge you a "listing fee" of a thousand bucks or so, stick it up on the web, and...that's about the extent of it. Your timeshare will sit online with a hefty price tag forever. To see this in action, go to eBay and search for timeshares for sale...you'll have everything from a Marriott to an unbranded resort all going for a buck or a penny.
Why are timeshares difficult to sell?
There's no real value. As soon as you leave the timeshare presentation, their value drops to zero. The main reason for this is simple. Why do you need a timeshare these days? With so many options on the market - from traditional OTA's to AirBnB - all offering the exact same thing but without the commitment of ever-increasing maintenance fees or the risk of special assessment fees, the value proposition of timeshare fades pretty quickly. It's a non-sought after good; most timeshare owners didn't wake up one morning thinking they wanted to buy a timeshare...quite the opposite. I would guess that 90% of timeshare owners were determined to say "no" to the salesperson the day they attended their sales presentation...but ended up buying anyway. Timeshare needs a really good salesperson selling the product to get people to buy because once the prospect leaves the presentation, they'll never stop and think, "Shucks, I really wish we'd bought that timeshare!"
Why do you end up paying to sell your timeshare?
Well, that's the thing. If you're paying to sell, you're most likely paying a listing company (see above). If you're paying to exit your timeshare, you're using the services of an expert company specializing in getting that deeded real estate out of your name, forever. And in almost every case, it costs money to get out of a timeshare deed as there are usually only three options available:
- Give it away for free...but you're going to have to pay a title company to handle the transfer
- Hire an attorney to try and force the timeshare developer to take the week back (but why would they without a really good fight? The developer is counting on your maintenance fee's, forever)
- Hire a company that specializes in getting you out of your contract and deed
How long does it generally take to sell a timeshare?
I'm going to change "sell," to, "exit," because as we now know, timeshare doesn't sell :) However, it takes between 9 and 18 months to exit your timeshare...which shows how aggressively the timeshares are fighting to keep people from getting out of their ownership.
What information/documentation do I need to prepare to sell my timeshare?
You need your original purchase documents and the deed.
If you are in a position to exit your timeshare obligation we would be happy to connect you with the right people for your needs. Contact The Tonic Group at Urban Nest Realty by signing up above and requesting more information or contact Suebrett Tonic at (702) 400-3881 directly.