What to Know About Selling Your Timeshare

A timeshare is a unique way to own vacation property where ownership or rights to use the property are divided among multiple owners. While this is often a great way to have affordable long-term access to a popular vacation spot, there eventually comes a time when you want to sell your timeshare.

Perhaps your family dynamics have changed, or your children have grown and moved on to have vacations of their own. Financial considerations usually lead an owner to sell a timeshare, and health concerns as we get older play a big part in deciding to sell. Whatever your reason, there are aspects to the process to consider when selling a timeshare.

Here's what to know about selling your timeshare.

What to Know About Selling Your Timeshare – The Basics

1) Understanding Your Timeshare Contract

Understanding the details of your timeshare contract is the first step in the selling process. The contract details exactly what you own, the conditions and any restrictions under which you may sell your timeshare. This can include:

Right of First Refusal: Some contracts give the resort or management company the first opportunity to buy your timeshare before it is sold to another buyer. Keep in mind that a purchase agreement must already be in place with a buyer for the resort to consider this option, as it will review the agreement.

Transfer Fees: There may be fees associated with transferring ownership of the timeshare when it is sold, which can impact the profitability of the sale. However, this can be negotiated for the buyer to pay the fees.

Usage Rights: Knowing exactly what you're selling, whether it's a fixed week, floating week, or a points-based system, is essential for a transparent process with a buyer.

2) Determining the Value

Before advertising your timeshare for sale, you should accurately determine its value. The value of a timeshare can be affected by factors such as:

Location: Timeshares in popular vacation destinations tend to be more valuable.

Amenities: The on-site resort amenities such as pools, spas, and restaurants.

Season: Ownership during peak vacation times may increase value, such as a July week on Cape Cod.

Age and Condition: Older timeshares or those in need of extensive renovation may draw a lower price point but may appeal to someone looking for a lower cost to use it for exchange purposes.

3) Marketing Your Timeshare

Marketing is crucial in reaching potential new owners. Some options include:

Online Advertising: Utilizing websites such as SellaTimeshare.com that specialize in timeshare resales and have an online marketing presence supported by a team of professionals who understand the industry.

Listing with a Broker: A licensed real estate broker specializing in timeshares can assist with listing and selling. An advantage of working with SellaTimeshare.com is we provide access to the licensed agents from Timeshare Broker Associates who can help with the sale.

Social Media: Social platforms such as Facebook and Instagram can be used to reach an online audience. However, this is more for friends and family outreach than to promote to interested buyers.

4) Beware of Scams

The timeshare resale market is open to scams, so you need to be vigilant. Avoid upfront fees without clear service agreements and be skeptical of unsolicited offers from unknown companies. Working with a reputable company such as those recommended by groups like the American Resort Development Association, of whom we are a member, will help mitigate risks.

5) Legal and Financial Considerations

Selling a timeshare involves legal and financial complexities, so consulting with professionals is often necessary. Working with licensed agents who use approved purchase and sales agreements and understand escrow responsibilities can make a big difference in legally completing a sale. This is the type of support available by working with us.

6) Evaluating the Current Market Conditions

The timeshare resale market is impacted by supply and demand, economic factors, and consumer preferences. Researching current pricing by using our free market analysis calculator can give you a head start of what to expect in terms of pricing and the time it may take to sell. Our calculator gives you the average asking price for the sellers looking to sell a timeshare on our platform from your resort.

7) Negotiating the Sale

Selling a timeshare online involves negotiation. Some factors to consider include:

Price: You may need to be flexible on price, understanding that resale prices are substantially lower than new sale prices at the resort.

Inclusions: Clearly outline what is included in the sale, such as specific number of points or specific week number.

Closing Costs: Negotiate who will be responsible for closing costs, as this can affect the final price. Buyers are often responsible for paying closing costs but get this in writing just to make sure.

8) Understanding Regulatory Compliance

Different states may have different regulations governing timeshare sales. This can include mandatory disclosure requirements or the need for a lawyer to review a sales contract. A licensed agent with expertise in timeshares can guide you through these complexities. 

9) Managing Emotional Expectations

Selling a timeshare can be a lengthy and sometimes emotionally frustrating process. Being prepared for potential delays and maintaining realistic expectations can make the process less stressful. Closings can take as long as 120 days to complete a sale due to the time it takes for a resort to review and sign off on the transaction.

10) Exploring Exchange Value

Some timeshare buyers purchase for the ability to exchange their timeshares for different vacation experiences. Determining the exchange value with your exchange provider such as RCI or Interval International can be a selling point, demonstrating additional value and flexibility in ownership.

11) Maintenance Fees and Other Ongoing Costs

One important consideration when selling is how to handle ongoing maintenance fees and other costs associated with the timeshare until the sale is finalized. Resorts will require that all fees and annual dues are paid and up to date before approving a sale. Transparency with potential new owners about the ongoing maintenance fees is crucial, as it could influence their decision.

12) Providing Financing Options

If you're selling your timeshare resale, you may want to consider offering financing options to attract more buyers. While this is unlikely due to the lower price points on the resale market, offering this as an option may help. Perhaps refer them to an outlet such as LightStream for more details.

13) Considerations for International Timeshares

If you sell a timeshare in another country, additional complexities such as currency exchange may arise. Make sure everyone understands that the asking price is in US dollars and be ready to explain how annual fees are paid when responding to inquiries.

14) Post-Sale Responsibilities

Once the sale is closed, you will still have responsibilities such as notifying the resort of the change in ownership, finalizing any transfer of membership and ensuring that all ongoing fees are transferred to the new owner. If you choose to work with a timeshare resale company such as us, this communication will be handled by a professional agent.

Next Steps Now That You Know About Selling Your Timeshare

Now that we’ve explained what to know about selling your timeshare, you realize it can be a complex process. Selling your timeshare requires understanding your contract, determining the value, effective marketing, avoiding scams, and managing legal and financial considerations.

Selling a timeshare is not like selling traditional real estate, but by being well-informed and seeking professional assistance, you can navigate this process successfully. Always keep in mind that patience is a key factor in this often-challenging market.

The good news is that our self-service, automated system can get the process started for you in a matter of minutes. By uploading your information into our program, we will build your advertisement onto our network of websites and refer you to the licensed agents at Timeshare Broker Associates to help you navigate through the aspects of the process mentioned earlier. All with no upfront fees.

Ready to begin? Get started by clicking here.