Josephine Cheng, from the KCTS “About the Money” program, recently aired a great segment on timeshare resale tips and options. With 7 million timeshare contracts in the United States, timeshare ownership can be a vacation dream for many. But, with the challenging economy, defaults on maintenance fees are rising every quarter which means the timeshare resale market is flooded. She interviewed several timeshare and travel experts to get their insight on options for those who need to sell their timeshare.
Lisa Ann Schreier, the Timeshare Crusader, reminds people that vacations are good, especially if you are under stress. But you must remember that a timeshare is not an investment. Those who need to sell in this market should not expect more than ¼ of what they paid for the unit.
Stephen J. Cloobeck, Diamond Resorts International CEO says you should hang up on timeshare companies calling you to solicit you with offers to sell your timeshare fast. Anyone asking for money up front or telling you they need a payment for a web design fee is a scam. If you don’t want to try and sell it yourself, you can call your developer or homeowners association to see if they have any interest in buying it back. If you do end up selling it yourself, he advises that buyers use an escrow company to handle the transaction.
Steve Danishek, president of TMA Travel in Seattle, told Josephine that there are exceptional deals out there. And, there is no need to buy a timeshare resale right away when you can try it out by renting a timeshare first. He mentioned RedWeek.com as a great source for timeshare rentals direct from the owner.