Why do I exit my timeshare if I can sell it? You might be asking yourself this question. Selling your timeshare can be an excellent option to make money on your investment and free yourself from timeshare ownership all at the same time.
If you are considering exiting your timeshare, you might wonder what option makes the most sense. Should you try to sell it? Is that even possible? And if so, can you get your money back? There are many reasons to exit your timeshare, and several options are available to help make this process as painless as possible.
This guide will resolve your queries: why do I exit my timeshare if I can sell it? How to sell my timeshare? We will also help you learn how to exit timeshare if you want to avoid selling it.
What Is A Timeshare?
A timeshare is a relatively new concept for many individuals. The term timeshare refers to a type of vacation ownership that allows the holder to use an accommodation, such as a hotel or apartment, for a designated period. You may take timeshare as a way of property sharing, where multiple people can use the same property at different times. Timeshare agreements are made between two parties: one who owns the property (for a set period) and another who rents it. The latter usually are timeshare companies.
Types Of Timeshares
Timeshares are typically categorized into the following types:
Fixed-week timeshares are the most common type. They offer ownership of a specific week in the year. This timeshare is ideal for consistent folks with a certain amount of vacation days each year.
Flexible Or Floating-Week Timeshare
In this timeshare, you can enjoy your timeshare property in random weeks of the year, i.e., you can use your timeshare anytime and any season. This timeshare was introduced in 1980 to allow owners to choose their vacation time at their selected location throughout the season.
Types Of Timeshare Agreements
Shared Deeded Contract
In this type of agreement, land ownership is divided between you and everyone else who owns the timeshare. You can transfer ownership through sales, gifts, or bequests under a share-deeded contract.
Shared Leased Or Right-To-Use Contract
This agreement is comparable to a shared deed, except that you won’t be able to transfer ownership, rent it out, or give it away. The lease permits you to utilize the timeshare for a specified period of years. In simple words, it doesn’t provide you with any ownership rights.
Why Do People Use Timeshares?
Now you may be thinking about why people buy timeshares if they don’t want to use them. People use timeshares for many reasons. For example, timeshares offer freedom and yearly vacations that are assured. Hence, people like the stability of paying a yearly fee and having a set number of weeks per year with no restrictions on when they can visit. For many people, it might also serve as a status symbol. Owning a specific property in the destination of your choice every year simply for vacations implies the owner is financially secure and prosperous.
Additionally, most people are drawn to timeshares because they offer a luxurious vacation experience. The allure of being able to go whenever you desire, stay as long as you want, and have a room waiting for you with your name on it is enough for many people. The chance to own a property in multiple locations for a set period might be another reason behind buying a timeshare.
Timeshares are a relatively inexpensive way to own property in multiple locations. When you buy a timeshare, you’re paying for the right to use someone else’s home, condo, or hotel room at any time of year.
Benefits And Risks Associated With Timeshares
Everything has two sides, positive and negative, and timeshare is no exception. You should know each aspect of the matter. So, the following are some benefits and risks associated with buying or using a timeshare.
Pros Of Owning A Timeshare
- Timeshare provides more flexible vacation options and the capability to go on unavailable vacations during a certain time. You’ll have access to a property for an entire week, and there will be no worries about not being able to book a hotel room on short notice.
- You can also take advantage of resort amenities, like golf courses, spas, and pools, all year round! You’ll never have to pay for parking or food at your destination because you already own the place. Additionally, with no limit on how many people can stay in one room and no restrictions on the length of stay, vacations are more affordable and flexible than ever.
- Timeshares are an excellent way to experience a new destination without committing to buying a home there. You can stay in different homes worldwide and feel like a local because you will have a more well-rounded view of the country, city, or resort.
- One of the greatest advantages of a timeshare is that you don’t have to maintain the property. It means upkeep, lawn work, and other chores are taken care of for you. However, the charges for this maintenance will be deducted from your annual charges for that particular timeshare resort or property.
- Another benefit associated with owning a timeshare is the size. Timeshares are always spacious and often come well-equipped. It is great because, in a normal vacation hotel, you may not have access to well-furnished rooms and other services despite paying a large amount, but with a timeshare, you get all these benefits at an affordable price.
- In addition to the space and equipment, many timeshare owners also get discounts like restaurant vouchers or golf course memberships which are hardly available in usual vacation spots. With so many amenities combined into one package – it is no wonder why people would want this type of service for themselves!
Now let’s look at the other side of the picture, i.e., the cons of owning a timeshare.
Cons Of Timeshares
- One of the most common risks of timeshares is that maintenance fees will continue to increase over time. It can be a problem if you only plan on staying in the unit for a year or two and then want to resell it. The common method for calculating maintenance costs is to use a proportion of the overall cost of the property, so they may sometimes double or triple in cost over time.
- Cancellation penalties can be a major risk associated with a timeshare. The average cost to cancel a timeshare is $4,000. If you’re careful, you could save money when canceling your timeshare. To protect against this risk, you should read your timeshare contract and check with the lawyer before signing to make sure it’s something you are willing to do. Some lenders offer loans for cancellations without the typical fees.
- One of the biggest risks associated with timeshares is depreciation. It is when the value of your timeshare decreases over time, which could mean you lose money. For example, if you paid $1000 for a timeshare property and its worth has decreased by 25%, it’s only $750 now. It means that you will not only need to spend more money on upkeep or maintenance fees, but you’ll eventually lose most of what you invested in the first place.
- Another issue with timeshares is that they are relatively easy to sell. The resale value for a timeshare is usually less than half of what the original owner paid.
- Timeshare financing is often pricey and hard to obtain as you can’t get financing through traditional mortgage loans. The only options for timeshare financing include using a high-interest credit card, taking out a personal loan, refinancing your home, or getting an unsecured line of credit from a bank. These are risky as the interest rates are quite high if you’re financing your purchase through a bank or credit union. Moreover, if you want to finance your timeshare through a timeshare company, those rates will typically be even higher.
- Lastly, it’s important to understand that many timeshare companies do not provide consumers with information about how their contracts work, which may risk losing your money if something goes wrong.
Why Do People Want To Exit Timeshares?
In theory, a timeshare might seem like an excellent idea – buy a week at the same resort every year and reap the benefits of visiting your favorite vacation spot anytime you want while saving money on hotel costs and airfare, right? Unfortunately, timeshares are more complicated than they appear, and many people who have signed up for them are looking for ways to get out of their agreements as quickly as possible. There are several reasons why someone would want to exit their timeshare agreement. It includes:
Rising Maintenance And Other Fees
In recent years, the number of people looking to exit their timeshare agreements has been increasing in response to the rising maintenance and other fees they face. A source claims that timeshare maintenance costs tend to rise and get more expensive every year.
People Want Change
Another reason people want to exit the timeshare agreement is that they may get bored by seeing the same people and scenery each year. It’s our human nature that wants something different each moment. We can’t be satisfied with just one thing or person in our lives for too long. We need change, we need new things, and we need new people!
The Timeshare Property Was Not As It Was Advertised
When you first purchase your timeshare, you’re promised a wonderful vacation destination that will be there for you anytime you need it. But that’s not always the case; if the resort is outdated or doesn’t look like it did in the brochure, many owners want to exit it.
Unstable Financial Condition
The most common reason for wanting to end a timeshare contract is that the holder can no longer afford it due to job loss or a reduction in income. Hence, they may find it difficult to pay the hefty expenses each year in the name of the timeshare, and they prefer to exit their timeshare as soon as possible.
Why Exit Timeshares When You Can Sell It?
Why exit my timeshare if I can sell it? You might be asking yourself this question. Timeshares can be very expensive, but that doesn’t mean you should suck it up and pay the monthly fees forever if you can’t use them. For many owners, it makes more sense to sell their timeshare than to keep paying for something they don’t use. However, selling a timeshare might be harder than you think if you’re unfamiliar with the process.
How To Sell Timeshares?
Here’s how to sell your timeshare while avoiding as much headache as possible.
Make Up Your Mind To Sell Your Timeshare
If you’re struggling with a decision, ask yourself these questions: Do I have enough time to maintain and update my timeshares? Do I feel obligated or pressured into maintaining my timeshares? Does it make more financial sense for me to sell my timeshare than it does for me to continue owning it? Hence, you can make an informed decision about selling your timeshare.
Know What You Have In The Contract
After making up your mind to sell your timeshare, the next step is to go through your timeshare agreement. Read the contract carefully. Understand what is and isn’t included in the timeshare. You need to know how much you still owe on it, how long until it expires, and what the annual maintenance fees are currently set. Understanding these numbers will help you gauge how much your timeshare is worth. If you need help understanding something, call a lawyer or ask your timeshare company about it.
Educate Yourself On The Process
After this, know the basics of selling timeshare. To start, you need to research the average price of your timeshare and how much you can expect from it. If you want to sell it quickly, then price it at a lower amount than you would if you were looking for a long-term buyer.
Find A Legitimate Buyer Or Reseller Or Get Help From Real Estate Agent
Sellers are at risk of being scammed if they don’t know how to sell a timeshare. To avoid being scammed, you should find a legitimate buyer or reseller. Many businesses promise to buy your timeshare and give you cash immediately, but they never follow through on their promises. To receive the maximum return on your investment, you should invest the time to investigate which firm is ideal for you.
Moreover, consider selling your timeshare online on Craigslist and eBay or through an auction site. Be sure you have good photos of the property so buyers can get an idea of what they’re getting into before buying.
Avoid Upfront Fees
Selling your timeshare can be difficult, and you may need help. However, the companies that offer this help often charge high upfront fees before they even know if you can sell your timeshare. Hence, you must research before signing a contract to sell your timeshare. Beware of any offers that are too good to be true. Some companies might offer you an above-market price for your timeshare if you agree to some of their terms. However, these contracts can make it harder for you to sell your timeshare in the future.
Get Everything In Written Form
When you’re selling your timeshare, there is a lot at stake. That’s why you must get everything in writing before signing any agreements. A written agreement will protect you from scams, help keep the transaction on track, and save you time and money later. The person buying your timeshare should sign an agreement stating they are purchasing the property from you for a specific price.
The sale should then be verified by two independent third parties who verify that both buyer and seller are acting in good faith. Once all these steps have been taken, you should transfer the property’s title to the buyer by deed transfer or quitclaim deed- a contract that transfers ownership of a home or a timeshare to the other party. By “quitting” your title to the property, you are transferring ownership to another party or a buyer.
4 Ways To Exit Your Timeshare Other Than Selling
Several additional solutions are available if you want to exit your timeshare but don’t want to sell it. It includes the following:
1. Use The Right To Revoke
One way to get rid of your timeshare without selling it is by using the right to rescind. If you purchase your timeshare with a sales contract with a clause stating that you have the right to cancel, you may be able to exercise this right and cancel the contract. You can determine whether or not you have this right by consulting your contract or contacting the company that sold you the timeshare.
2. Rent It Out
When you rent out your timeshare, you are getting paid for using it while someone else is living there. It can be a good option if you have become financially unstable and can’t afford the annual charges of your timeshare. You will earn back the money that would otherwise go towards maintenance fees by renting it out. Additionally, it will save you from the timeshare responsibilities while still owning it.
3. Give It Away
If you’re trying to quit your timeshare, you can also consider giving it away. You can offer your timeshare as a prize for an incentive program or charitable fundraiser. Furthermore, if you have friends or family members looking for a vacation home, talk to them about trading your timeshare for their house in a different location that would work better for you.
However, it may be hard to find someone willing to trade their property for yours, and there is no guarantee they’ll keep up the payments on the mortgage. Additionally, if you give your timeshare away, you will not get any money from it when the other person eventually sells it.
4. Contact With A Timeshare Exit Company
In contrast to timeshare selling companies, some businesses offer services to timeshare owners in helping to exit their timeshare. Timeshare exit companies also demand a fee for their services, but many claim it’s worth the money, considering how much time and frustration it can save you in the long run.
The best thing about this option is that they will take care of everything. You only need to pay the set charges. They’ll even handle all your paperwork for you, so you only need to sign on the dotted line when the documents arrive at your address or in the mailbox.
Timeshares are a great way to vacation at any time of the year. However, they’re not for everyone. If you don’t have much spare cash, want to get out of debt faster, or want more freedom, then an exit may be in your best interest. However, the exit strategy for a timeshare varies based on the resort and how long you’ve owned your timeshare.
Some resorts offer release rights. It means you can sell your property back to them while others will allow free exchanges with other owners in their network, sometimes referred to as transfer. Whatever the way you choose to exit your timeshare, make sure to do plenty of research before making any final decision. Furthermore, it is always ideal to talk with experts about which method will work best for you!