Pricing Your Timeshare Correctly
Determining the price of sale of your timeshare in the aftermarket is a little bit tricky.
It all depends on how fast you want to sell and other factors such as the demand for the complex in which you have your timeshare, the holiday area, unit size, season, amenities and facilities in the complex.
A timeshare, if well maintained, does not have to lose its value over the years, as with other fixed assets. So, it can be bought in the second-hand market as if it were from the developer, but with prices up to 75% below the original prices – if not more.
And potential buyers may have a preference to get their timeshares straight from the developers because they can see the complex beforehand, financing is usually offered and there is little risk of fraud.
The risks of buying a timeshare in the second-hand are well known.
The information provided by the seller may be false, the seller is not the legal owner, there are debts, the complex is in poor condition or suspended from the exchange companies.
In addition, potential buyers may not be able to see the complex prior to committing to a contract, increasing the chances of buying a timeshare that is much below the quality standards they are looking for. Which works against someone trying to sell their timeshare in the aftermarket.
So, if you want to price your timeshare correctly, with better chances of getting the most out of the negotiation, the first thing to do is to research the market price of your property, comparing prices and the time of the year it is for sale.
Pricing Your Timeshare (Simulation)
A low price would be $2000 (you want to sell urgently);
A normal price would be $3500 (not in a hurry to sell);
A high price would be $5000 (wants to make a profit);
Now add $1000 For each bedroom; add another $1000 if it’s a highly requested complex (5 stars); finally, add $1000 per red week or if it’s a region with high demand.
Pricing Your Timeshare (Alternate)
If you want to get out of your timeshare without having a substantial loss, subtract 25% from the original price;
If not in a hurry to sell, subtract 25-50%;
If eager to sell, subtract 50-75%.
Developer prices range from $6000 – $15000 per week.
Lately, many companies have appeared that are supposedly engaged in the resale of timeshare. As you may be well aware by this stage, not all of them are serious and we recommend that you inform yourself well about the resale companies you might be considering to get assistance from.
Here are a few points to consider:
Where does their inventory of timeshares come from;
How do they find potential buyers;
What marketing strategy do they have? Mailing, phone calls, letters, programs with promotional stays, salesrooms, press advertisement;
Do they have satisfactory transaction references you can see and check for yourself;
What fees, deposits, and commissions do they get from you;
If they ask for money upfront, it should be a very small sum;
Commissions are usually 10-50%;
The price they suggest for sale;
The guarantees for sale they offer you;
If your timeshare is not sold, will they refund your initial deposit;
If you must pay fees, are they one-off fees or recurrent;
What other services will they give you, and are these services worth the money they ask for;
What experience do they have;
Will they rent out your weeks until they make a sale;
Finally, beware of companies that contact you unsolicited and promise fantastic prices that a supposed buyer is willing to pay.
If for some reason you cannot go on vacation or need money, rent out your weeks.
To determine the price for the rental, find out about the prices of similar accommodation in the area in which you have your timeshare.
The price you ask for your timeshare should be below these prices, so it’s an interesting offer for prospects, but at the same time, it should cover the maintenance fee.
It is possible that a potential buyer of your timeshare would like to see the complex beforehand and rent it. Conversely, a rental might end up in a sale if the renter is pleased with the experience.
Sophia D’Souza is a Content Marketer, Blogger and Story Teller at Exit Timeshare. She enjoys connecting with people, keeping herself updated with the latest in the field of business, technology, travel & fashion and spending quality time with her family.