Timeshare Talk: Can Timeshares Be Sold?

At the start of 2020, the value of the timeshare industry was $10.5 billion. A timeshare sales pitch makes sharing property ownership sound wonderful, and many people have bought into the idea. 

Some timeshare owners no longer want to pay annual dues and maintenance fees. But they don’t know if selling is an option. Well, this article answers the question, “Can timeshares be sold?”

What Is a Timeshare?

A timeshare is a type of real estate with shared ownership and that’s used for vacations. Payment of annual dues gives owners a place to stay during an agreed-upon time. Investing in a timeshare is a lifetime commitment for everyone involved.

How Do Timeshares Work?

The premise of timeshares is to share ownership or use of a resort property. Here are a few ways investors may decide to divide their time in the timeshare:

Fixed-Week

Fixed-week timeshare reservations are for people who take annual vacations like clockwork. It guarantees the same timeshare property at the same time every year. With a fixed week timeshare, finding vacation lodging is not a problem.

Floating-Week

Floating-week timeshares are more flexible but do have restrictions. They grant owners reservations during any eligible time of year. But they’re often hard to reserve during peak seasons throughout the year. 

Timeshare Exchange

A timeshare exchange program works on a point system. Owners can use the point value of their timeshare to stay at other resorts within the program. For instance, they can stay at any location of Wyndham timeshare but may incur a fee.

Timeshare Ownership

Contracts for timeshares are either shared by deed or lease. Ownership and use of timeshare property depend on the contract entered into. Here’s how they differ:

Shared Deeded Contract

A shared deeded contract splits ownership amongst whoever invested in the timeshare. Each owner has the right to reserve the use of the property. That restricts other owners from staying at the timeshare during that time.

Shared Leased Contract

A shared lease is a right-to-use contract, much like timeshare rentals. For the duration of the lease term, owners permit lessees to reserve their timeshares. Lessees cannot sell nor rent their shared time in the property for any reason.

Shared deeded contracts allow owners to sell or gift their part of the timeshare. But lessees have no ownership rights under a shared leased contract.

Selling a Timeshare

The process of unloading timeshares can get complicated. Real estate agents know how to sell most types of properties. But it’s best to hire one who specializes in timeshare selling and can take care of everything.

Many brokerages list timeshares for sale with no upfront fees due. So it may work out better to enlist more than one company rather than signing an exclusive agreement. This could result in more offers and likely one that’s agreeable.

Market Your Timeshares for Sale

Don’t regret the decision to buy into the timeshares market. Stop feeling trapped because there’s a way out. Prepare a sales pitch to prospective buyers, emphasizing the same attention-grabbing benefits.

If you found this information helpful, check out our other educational articles.