Self-Help & Other Options for Getting Rid of That Unwanted Timeshare

Although timeshares may be a good choice for some people, for many others they simply create a perpetual cycle of obligation.  In addition to the initial purchase cost, timeshares come with a host of increasing fees such as maintenance fees and special assessments, that are attached for the life of the timeshare. When a timeshare owner decides that his/her timeshare is no longer wanted—either due to financial reasons or simply because it is no longer being used—the question arises how to get rid of the unwanted timeshare in a safe but effective manner.

Often timeshare owners believe they can recoup their costs of the timeshare on the secondary market, but too often the market is over-saturated with existing timeshares as well as with competition from developers selling new timeshare properties.  This excess supply of timeshares makes recouping any value from a timeshare near impossible.

The reality is that because of the inherent fees, many timeshares hold a negative value.  As we discussed previously, “value” is traditionally determined by what a reasonable buyer would pay for a good or service.  With an excess supply, the cost of any good plummets.  In real estate, there is a potential caveat because a property is determined to be “unique,” and thus, value may increase if a specific purchaser is willing to pay more for a specific property.  Unfortunately, this is not the case with timeshares.  Regardless of whether a timeshare is based on a points system or a deeded interest in a particular unit in a particular property, most timeshares are not unique.  For example, there may be hundreds of similar units within one resort, each one potentially having different over fifty owners throughout the year.

These factors make selling a timeshare an incredible difficult endeavor and has opened the door to a multitude of timeshare resale scams.  The aftermarket fraud rate for timeshare resales hovers around 80%.  Scam artists promise to find a willing buyer for any particular timeshare in exchange for an upfront fee to cover “processing” or “marketing” costs.  It is a dangerous marketplace for timeshare owners.

What Choices Do I Have?  As a timeshare owner, you do have options.  The top three methods to get rid of an unwanted timeshare are: Self-Help Timeshare Sales, Legitimate Timeshare Resale Brokers, and the use of Timeshare Divestment Attorneys.

Self-Help Timeshare Sales – Sell Your Timeshare Yourself

You can sell your timeshare on your own and potentially save money in broker fees.  However, you may spend more in maintenance fees as you wait for a potential buyer.  If you choose to sell your timeshare on your own, be realistic about your options.  With many thousands of timeshares listed on eBay for $1 that have not sold, you need to be aware that you will not recoup anywhere near your original investment.  In fact, the goal here may be to find a buyer to simply cut your losses and avoid future maintenance fees.

One way to find potential buyers is to join a timeshare owners group like Timeshare User’s Group or Timeshare Forums.  

 These are networking groups where timeshare owners offer advice, assistance, and tips for other timeshare owners.  They also provide a safe and independent marketplace where you can list your timeshare for potential buyers. 

Legitimate Timeshare Resale Brokers

Legitimate timeshare resale brokers do exist and can be a valuable resource for owners of exceptional timeshares.  If you decide to work with a resale broker, however, make sure to do your homework first!  Check out the company/firm to see if it is legitimate, is licensed, and has no complaints.  Some timeshares (the most unique and usually the larger ones) do hold some positive value and a licensed and legitimate real estate broker can help determine if your timeshare is one of these.  Again, you likely may not recoup your initial investment, but in some instances you may in fact be able to recoup some of the value.  Make sure you review a bona fide set of directly comparable sales (just like a real estate comparative market analysis or “CMA”), to be absolutely sure you have a positive value after commissions are paid.  One piece of advice when working with a resale broker is to avoid paying upfront fees at all costs.  Keep in mind that although brokers do charge a fee, legitimate brokers usually take a commission of the sale after it is completed.  Many resale scams work by charging timeshare owners upfront processing fees in order to find a potential buyer (or they claim to already have one), and then disappear without a trace.

Timeshare Divestment Attorneys

Timeshare divestment attorneys are an alternative to those considering selling a timeshare.  These attorneys actually work to divest (i.e., cancel) your timeshare in its entirety, meaning that your timeshare and all associated financial obligations are completely dissolved forever.  A good timeshare divestment attorney will work directly with the resort to release you from your timeshare contract, thus ensuring an effective, legal, and safe mechanism for timeshare disposal.  To be sure an attorney is legitimate and not an imposter, you can check with an attorney’s respective State Bar Association.  As with resale brokers, always make sure to avoid paying any upfront fees.  It is rare, but certain divestment attorneys charge a contingent fee, only if and after, the divestment of your timeshare is successful.