Getting Rid of a Time Share

[Lee B]

I have an elderly client who owns a Time Share in Palm Springs. She doesn't travel much any more

so she doesn't use her week(s). Unfortunately, she is still paying annual fees of close to

$ 1,000 per year. How to get out from under these fees?

1. Turn back the week(s) to the Time Share Company. Is this possible ?

2. Sell the Week(s) ? I know there are a number of shady operators asking for money up front.

3. Donate the week(s) to a charity. I heard this is possible, but I have also read that there are lots of

scams out there, again asking for money up front?

If anyone has successfully helped a client thru this, I would like some feedback.

Thanks,

Lee Barckert

[kcjenkins]

There is a market for selling timeshare. I'd suggest she contact a reputable realtor in the area of the timeshare, and let them help her sell it. It is not simple, tho, Plus, the resale business is riddled with scams

The FTC has good info here:

https://www.consumer.ftc.gov/articles/0073-timeshares-and-vacation-plans

MSM Money:

http://money.msn.com/saving-money-tips/post.aspx?post=6819be8c-9d9e-4761-a0cf-fa9242647149

Some basic tips

1. Sell where you bought
Start with the company you bought your timeshare from. Some timeshare companies have a resale program. Others may provide you with a list of interested buyers. But most won’t help you at all. These people are in the business of selling new units, not helping you resell yours.

2. Sell to other owners

Ask the timeshare company who has the “interval” in your timeshare before and after you. Offer to sell your time to those owners. They may want to buy the timeshare from you to extend their stay.

3. Use a local broker

A licensed real estate agent might sell your timeshare for you, but you’ll probably pay a higher commission rate than you would on the sale of a house or a condo. According to the ARDA, the real estate company may charge you a commission fee of 10 to 30 percent. Before you sign up with a real estate agent, ask about the agent’s marketing plan and experience. Don’t pay commission to an agent who will only post an ad online, since you can do that yourself. Look for a licensed agent experienced in selling timeshares.

4. Sell online

You can sell your timeshare online yourself. Some websites specialize in reselling timeshares. Check out:

RedWeek
The Timeshare User’s Group
My Resort Network
TransAction Realty

Post a free classified ad on a local buying and selling site like Craigslist or the online classified section of the local newspaper where your timeshare is located. By posting an ad in the timeshare’s location, you’ll attract buyers interested in that area.

If you need to sell quickly, use an auction site like eBay. Starting an auction on eBay costs $70 – including a $35 insertion fee and a $35 final value fee. The auction can run from one to 10 days. Here are some tips for writing that ad…

Find your selling point: Research other timeshares and hotels in your area and find something your timeshare has that other vacation options don’t. Use that as leverage when you post an ad. Make your timeshare stand out and you’ll draw in more buyers.

Price competitively: Timeshares in the same resort can be nearly identical. Check local ads for other timeshares for sale in your building and price yours lower. When buyers have several to choose from, they’ll obviously choose the cheapest unit first.

Time your sale: List your timeshare a month or two before the start of the vacation season. That is when the majority of buyers will be looking and you stand a better chance of selling your timeshare quickly.

5. Watch out for scams

Timeshare resale scams are always widespread, but scammers really start coming out of the woodwork during tough economic times. In 2009, the Federal Trade Commission received 819 complaints about timeshare resale. By 2011, that number was more than 5,000, according to USA Today.

Horror stories abound. In an article called Selling your timeshare? Look out for scammers, the Virginian-Pilot recounts a story of one couple called by a resale company that had a definite buyer for their unit – they even had a signed letter of intent from the buyer. All the owners had to do was send $375 to the company and the sale was done. They sent in the money, then never heard from them again.

Watch out for resale companies that offer to “take the timeshare off your hands” or want large sums of money upfront – they’re likely a scam. For other companies, do your research before signing up. Contact the Better Business Bureau to see if the company has any complaints against them. Compare prices with other resale companies and get everything in writing – including contract terms, marketing plans, refund policies, and costs – before you agree to anything.

[JohnH]

We bought a time share in the NC mountains about 2 hrs from where we live several years ago. It was a resale through the resort manager, who was not affiliated with the company that originally sold it. These numbers are close but not exact because I'm posting from memory. We paid about $500, plus three year's back dues of $250 or so per year, for a total of about $1,250. Imagine my surprise when I looked through the documents they provided us and learned that the original owner, who lived in Florida, had originally paid over $15,000 for the time share.

That gives you an idea of what some of these things are worth (or not worth). Your client should probably be prepared to take a big loss.

[Lion EA]

I've had a couple of clients who "sold" their timeshares, in different locations, for essentially no money. Just got rid of them and the annual fees. One sold through the management company.

[Jack from Ohio]

Just check e-Bay for an idea of value.

Essentially FMV = $0

[kcjenkins]

Well, you may not get much, but, if it's a 'good' property in a popular location, you should be able to get at least a small amount back, as well as getting out of the annual obligation, Palm Springs should be salable for at least a small recovery.

http://www.sellmytimesharenow.com/timeshare/Palm+Springs/city/buy-timeshare/

[TAXMAN]

I am told that losses on these may not be deductible unless you actually get a DEED. What you think on this?

[Jack from Ohio]

Losses are only deductible if you have used the timeshare as rental property. Otherwise, personal loss, no deduction. Deed or not makes no difference.

[Lee B]

Good Ideas

Thanks,

[JohnH]

I am told that losses on these may not be deductible unless you actually get a DEED. What you think on this?

I think the deed only comes into play when deciding whether interest on the loan (if there is one), is deductible as interest paid on a second home. If it's a deeded timeshare, then the interest is deductible. But if it's a right-to-use timeshare, then the interest is not deductible. But as Jack said, gain or loss on sale isn't deductible (unless it is held as rental property).