Selling timeshare is a complex process. A sale involves many aspects and it can become difficult to understand unless you are fully aware of the basic terminology used with timeshares. This overview of some terms that you may come across when looking to sell your timeshare will help you demystify the selling process.
Generally, timeshares are not appraised when you buy them from your resort. They also don’t always need to be appraised when you are looking for buyers to make a resale. But a professional appraisal showing that the property is indeed worth the sale price will lend weight to your advertisement and could make the sale process quicker. If you plan to use a company to sell your timeshare, they may ask for an appraisal as well. If you haven’t decided on the sale price yet, an appraisal will help you choose the right price.
Right of First Refusal (ROFR)
When you come to an agreement with a prospective buyer for your timeshare, the resort where the timeshare is located may have the Right of First Refusal on the deal. The resort can pay you the price that you have agreed upon in your new deal to repurchase your timeshare. If the resort prefers to waive this right, then you and the buyer can go through with the deal.
Banked time in your timeshare is the number of weeks or points that you have accumulated for later use throughout your ownership. Another term that is similarly used is ‘Accrued timeshare weeks’. These weeks would have carried forward unused from preceding years. Such unused time will have an impact on the value of your timeshare and is a factor you should take into account when selling timeshare.
The total expenditure you incur in closing the sale deal and transferring your ownership in the timeshare to the buyer is referred to as closing costs. The closing process can be lengthy and complex, and the closing costs can often be quite high.
For Sale by Owner
Direct sales of timeshares are generally advertised as “For Sale by Owner” deals. Buyers directly contact and transact with the timeshare owner in this case. The fees charged by intermediaries is eliminated in such transactions, but the selling process requires a lot of investment in terms of time and effort.
Red week is the peak season for a resort. Typically, timeshares that allow the owner to vacation during this period are in great demand. Consequently, such timeshares are also priced higher than those offering off season weeks, even if they are for the same resort.