Many timeshare owners come to a point in the road where they no longer can afford to pay their maintenance fees and other costs associated with timeshare ownership. The first thought that comes to mind is if there is a resale market for their timeshare. If they cannot afford the timeshare or cannot use the timeshare, then they might as well sell it the logic goes. I’d say about 20% of the calls we get into our office are people looking to sell their timeshare and wanting to know if we can help them with that.
The standard reply we give every timeshare owner is we do not buy timeshares, we do not list timeshares, we do not help sell timeshares and we certainly do not want your timeshare. What we do is help you legally and permanently cancel your timeshare contract. Let me quickly review why the concept of reselling of timeshare is not at all what you might think it is.
Timeshare Resale Websites and Timeshare Listing Companies
What usually comes next for these timeshare owners is to go online and do some research about how much their timeshare is actually worth. What the consumer will then come across is a myriad of timeshare resale websites claiming to be able to help them sell their timeshare.
In almost all cases, these resale websites will charge an upfront advertising fee to be listed on their website and rarely if ever tell you that buyers are in short supply, or are virtually non-existent. Then there are other listing companies that will ask for a large upfront fee citing they already have a buyer for your timeshare unit and then will promptly disappear with your money and fail to deliver on such a promise.
The Supply and Demand Economics of Timeshare Resale
The reason these resale companies run on promises rather than results can best be understood from something you learned way back in your high school Economics 101 course. That is, it is a simple matter of supply and demand. There are over 10 million timeshare owners in the United States alone and a vast majority have found out the hard way that timeshare ownership is not all it is cracked up to be.
Between rising maintenance fees and lack of availability issues, many have realized that they can either no longer afford their timeshare, or that they cannot use their timeshare when they try to book a stay. It is at this point when they realize the well trained timeshare sales people that promised a dream had actually delivered a nightmare.
So with the vast majority of these 10 million timeshare owners coming to this realization, you can only imagine the oversupply of timeshares that are in turn listed for sale. These desperate owners are praying for someone to buy their timeshare from them to help recoup some of the purchase price and take over the maintenance fees.
The problem, however, is that there are only a small fraction the amount of buyers out there as there are sellers. One only need to look as far as CraigList or EBay to see this dynamic first hand. There are literally thousands of timeshares listed on those sites for $1.00.
Whenever there is an oversupply of a product vs. the demand for a product, prices plummet. This is especially true for a product that is by its very nature flawed. We discussed in a prior post whether timeshares were an asset or liability, which outlined why there was little argument that they were the latter.
The Moral of the Story
The moral of this economics lesson is to not be fooled into thinking there is an actual resale market for your timeshare. Almost all of these listing companies ask for money upfront, either for an ad on their site or to actually match you with a buyer.
Think about it, these companies would be more than happy to take their fee on the backend upon sale of the timeshare if they were operating in a market where there was actual liquidity. That is, a market with real buyers and sellers with real assets, such as is the case with as a real estate agent selling a home for their client.
As we mentioned prior, a true look at the timeshare resale market can best be understood by looking at the world’s largest online marketplace, which is EBay. There are thousands of listings for a $1.00 with no buyers in sight. If Ebay cannot find a buyer for your $1 timeshare, then how on earth will some fly by night timeshare listing website do any better?
You Do Have Options for Getting Out of Your Timeshare
The very best option available to get out of your timeshare forever is to hire an experienced timeshare attorney to help you cancel the contract. If you would like to speak with an adviser for a free consultation to discuss your particular situation, then submit your information below or call the Timeshare Freedom Group toll free at (866) 668-6872.