The idea of a timeshare began in the early 1960’s in the United Kingdom. Four European families decided to buy a vacation property together and each vacationed for one season of the year, then rotated to a new season the next year and so-on. This was a great way for them to enjoy a magnificent vacation spot at a quarter of he cost of taking it on by themselves.
Today, people don’t typically take a vacation an entire season. They’ll be lucky to escape work for a single week! So, that’s how today’s timeshare model began. It’s quite typical today for 52 families to “buy” into a single vacation spot – each of them slotting out one week of the year. Since they don’t know each other at all, a property management company needs to be hired to care for the house/condo in between each visit.
5 Reasons You Should Sell Your Timeshare
This new model of timeshares works great for some that love a certain area and enjoy their timeshare atmosphere very much. They’re excited to make the payments because they love their sliver of ownership so much.
There are many more people though, that aren’t as crazy about their timeshare for the reasons below:
1) Interest Costs
The average sale price of a one-week timeshare is $19,000. Sure, the price is better than purchasing an entire condo on your own for hundreds of thousands of dollars, but the price is still too steep for people to foot the bill with cash. So what do they do? They finance the purchase. Over the course of 10 years, this purchase will likely cost you $25,000 or more because of the additional interest.
Since you just can’t count on everyone to give the place a spotless shine before they leave, a property management company is needed. This comes with additional costs for each timeshare owner. Beyond this, you’ll all need to share the costs of air conditioning, heat, trash removal, annual property taxes, and physical repairs. On average, this tacks on another $660 a year that you’ll be expected to pay in monthly increments.
3) Forced Expenses
What would you say right now if I were to give you Super Bowl tickets for free? Quite a few would jump on it and celebrate for days! However, a wiser financial mind would think ahead to all the costs they’ll still incur on the trip. The flight, lodging, groceries, car rentals, stadium food and souvenirs – this “free” trip to the Super Bowl could easily end up costing you thousands of dollars!
This realization has hit many timeshare owners as well. Sure, they already bought their week and might even have it fully paid off, but the vacation still isn’t free! In addition to the monthly maintenance costs, they’ll still have to pay to get themselves out there, to eat, and they’ll need something to drive around in. If they want to enjoy their timeshare, it’s going to come at an additional expense every year.
4) Limited Flexibility
You’re slotted a certain week of each year, and there’s probably no flexibility around changing your time to a new week. This may not sound like a big deal, especially if you have the rights to a peak season week. BUT, life isn’t always that easy to plan. Family deaths, sickness, and even lack of funds can get in the way of you taking your vacation. You’ve been paying all the necessary fees each year, but sometimes you just can’t make the trip.
Your seemingly cheap vacation just got a whole lot more expensive given the fact that you can hardly ever make time to go!
5) Difficult to Sell
Have you ever tried to sell a house? How long did it take? Even if someone jumped on it immediately, it still takes time for the bank and the realtors to process the exchange, causing the transaction to take a month or more. Typically, houses can take 6 months or longer to sell.
Now, what if instead of selling the entire house, you’d like to sell only the garage? That makes it quite a bit more challenging doesn’t it? This is somewhat equivalent of selling a timeshare. Instead of selling an entire condo, you’ll just be selling 1/52nd of it – in other words, the right to a one-week stay. Many more people would be interested in the full purchase, not the small portion.
For this reason, many people are finding that they can barely give their timeshare away. The timeshare that they purchased for $19,000 is worth nearly nothing on the resale market. Why? Because just like those Super Bowl tickets, people are still signing up for a future bill. In the case of the timeshare, they know they’ll be locked into the yearly expenses for the long term, so they really have to enjoy the place before they make the plunge!
How to Sell Your Timeshare
If you want to sell your timeshare, you likely won’t be able to do it on your own. The pool of people that are interested in timeshares is quite a bit smaller than those that simply want to purchase a place or rent a hotel room for a week. To sell your timeshare, you’ll probably want to hire a company to do it for you. It might cost you a little extra, but you’ll likely earn more money on the sale than if you were to do it yourself.
There are tons of timeshare resale companies online, however after doing some research, I recommend a company called SellMyTimeshareNow.com. Since 2003, the company has employed specialists to help owners like me get rid of their timeshares with little to no hassle. They are active members of ARDA, a trade association representing vacation ownership and resort development industries, making them a bit more reputable than most.
Furthermore, they’ve generated many timeshare sales since their start-up, there are no hidden fees, and they already have a proven customer base that will immediately see your posting.
It may still take time to sell your timeshare this way, but you’ll hopefully net a better price and be able to get on with your life sooner than if you would tackle the sale yourself.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.