How To Sell a Timeshare in the New Economy

There is no secret that the economy has not been doing well for over 2 ½ years.  Is there light at the end of the tunnel?  Of course, but as you are most likely aware, it will take time to turn this economy around.  Lets face it; ever since the real estate market experienced a major decline in 2006-07, it has been a long road to recovery that won’t happen overnight.  So now what?  How do I sell my timeshare in this economy? 

There are many things to consider.  First and foremost, where is your timeshare located?  Is it in a desirable vacation spot?  Do you own a Red Week or a Blue Week?  Are there many amenities on the timeshare property?  What is the weather like if you own a fixed week?  How difficult is it to swap your week or to exchange your week thru an exchange company?  These are just some of the issues that help to determine the value of your timeshare property.

Sure, the economy has been at its lowest for the past several years; however, families still vacation!  The question is, how desirable is your timeshare property?  How much should I sell it for on a quick sale, or at a premium?  These are excellent questions, and most likely, your best bet is first, to contact a timeshare professional in the city or area where your timeshare property is located.  A professional can bring you up to date regarding current market conditions in that area, what timeshare properties are going for based on a comparable unit similar to what you currently own, and on a final note, provide you with a reasonable current market value of your timeshare property.

Now, that’s not to say, that you may be able to get more for your timeshare property than what you are being told by a professional, but for what its worth, it gets you in the ballpark of a fair current market value.

One of the big questions, is do you sell now or when the economy improves?  There are various trains of thought that go into this process.  Do you sell now for less, but eliminate your maintenance fees and possible monthly payments (if you financed your timeshare)?  On the other hand, do you hold on to your property, continue to make annual maintenance and other associated fees, until such time that the market improves?  If you decide to hold on to the property for the time being, then unless you intend to use it annually, or exchange it annually for another timeshare property, then you may want to rent it out during the years that you and your family are not planning on using it.  The rent you get for the week may cover your annual maintenance fees and other associated fees eliminated that annual debt.  Keep in mind, that if you financed the timeshare property, you will continue to incur the monthly payments.  If you can afford to hold on to the property for now, most likely the market value of the property will appreciate once again, when the economy improves, and vacation ownership once again, is back on track.

You know as well as I, that times are tight and many people are purchasing timeshare property from other individuals rather than the property developer.  There is no secret that purchasing a timeshare property in this manner is considerably cheaper, at least for now.  In many cases, the buyer can save as much as 50-70% by purchasing from another individual rather than the property developer.  Keep in mind, that you need to make sure that the property developer does not have the first right of refusal, or if they do, what are the conditions of a potential sale.

Obviously, there are many issues to consider.  One of the biggest issues is your current financial condition.  Can you continue to afford your timeshare property?  Is your property approaching foreclosure?  If it is, then selling it quickly or renting it out to help cover related expenses might be the answer.  If you can afford to continue to hold on to the property at least until the economy turns around, then you most likely will get much more for it later as the market values continue to appreciate.

As I always say, do your homework!  Write down the pros and cons of continued timeshare ownership.  Does it make sense to continue to own, or is there debt relief in selling your timeshare property now?  There are many questions, but only YOU can answer them!