The Timeshare Market In The Covid19 Era
By: Adam Burns – TKO Timeshare Solutions
There is no question the Pandemic and subsequent shutdown have affected everyone. It has also been devastating to many industries. The travel and leisure industry has been dramatically affected, including the timeshare market. As you can imagine, demand is significantly down. This certainly will affect the ability of most people to sell their timeshare, at least for any profit.
Before the Pandemic, many inquiries were related to how to sell or what their timeshare value may be. Most people were under the impression that they had an asset with at least some value and were at a point where they didn’t need or use the property and wanted to sell it.
As with any transaction, it depended on supply and demand. At this time, demand was not at an all-time low but was suffering. It all came down to whether the property had value (like Disney or Marriott). However, properties that may have had some value prior to the shutdown probably do not now. There are very few brands and properties where you can still make some money on the sale.
Right now, people are in two separate camps. The first camp is people who have generally never tried to sell their timeshare and are unaware of the current market conditions. The other camp is people who have been down this road without any luck and want to get rid of their timeshare, even if that means giving it away or paying money to get rid of it.
Any search on timeshare forums, like Timeshare User Group, or even a search on eBay will tell you that the market before the Pandemic was not great, but now it’s much worse.
Plenty of people have successfully sold their timeshare by themselves over the years. Reliable brokers will help you with the transaction. It is essential to use a licensed real estate broker qualified to sell the property on your behalf. Treat these brokers as you would with any other real estate broker relationship. Never pay for their services upfront. They should get paid a commission like any other real estate transaction after the sale is complete and during closing. Many scam artists out there will want an upfront fee to list your property or tell you they already have a buyer. If you list it yourself, you may get phone calls and inquiries from brokers agreeing to list it for you for a fee. Stay away from these types of situations.
It’s important to review all documents regarding your timeshare purchase, including any restrictions you may have on transferring ownership. If you don’t have these documents, you can request them from your timeshare company. BUT, do not let your timeshare talk you into keeping your timeshare and even trying to upsell you on additional programs or upgrades.
The Pandemic has caused the demand for timeshares to be at an all-time low. Selling your timeshare on your own is not going to be easy. Beyond the dramatic changes in the market from Covid you will always be dealing with the general change in the travel and leisure market that the internet has caused.
There is a reason everyone gets roped into initially purchasing a timeshare through a high-pressure sales presentation. Buyers get lured into visiting a presentation with tickets to free shows, vacation junkets, or other “free stuff.” This is because that is what it takes to sell a timeshare. It’s a lot of hoopla and keeping people contained in the same room for a lot longer than they initially thought. They use a high-end closer who dramatically reduces the price from the original amount only if you accept that day, creating a great sense of urgency.
If you truly want out, it’s probably better to cut your losses and find a way to get it out of your name. If you need convincing, by all means, try to sell it and list it yourself, or at the very least, do some research on the value of your particular property and go from there. Educating yourself and doing your due diligence will save you money in the long run.