If You Want To Sell Your Timeshare, Don’t Forget About This

One of the most important financial aspects of selling a timeshare is often the most over-looked.  The costs to transfer ownership of a timeshare are important considerations.  So important in fact, it makes our list of the 9 reasons your timeshare failed to sell.

Typically when you sell a car or a home the buyer is the one who is responsible for the costs to transfer ownership.  Taxes, title and registration are paid by the car buyer.  Title, escrow, and other costs are the responsibility of the home buyer.  The cost to transfer the ownership from a buyer to a seller is an important part of the “deal.”

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However, unlike a car or home, it is quite common for a timeshare seller to pay the cost to transfer the ownership to the buyer.  Why? Because buyers want to want to know exactly how much they are expected to pay.  No one wants to hear they will have to pay “about $500 to $660 more” on closing costs.  It is too much of an unknown.  Think about it -as a buyer wouldn’t you rather hear “the price we agree on is the price you will pay”?

With so many timeshares on the market, sellers are doing everything they can to make their timeshare more attractive to a buyer in order to facilitate a sale.  Covering the closing costs is a great strategy   as long as you know how much it will cost you before you start getting offers.

How Much Will it Cost?

The major title companies are charging anywhere from $350 to $550 to hold escrow and prepare the deed (more if you live in a state where an attorney is required to record the deed).  This fee can be even higher for non-deeded properties.  Recording fees may be additional as well as the estoppel fee to verify the ownership, which can be another $45 on average.

Once the deed is recorded it is sent, along with any other required documents, to the timeshare resort with a check to pay the resort transfer fee.  This is a fee paid to the resort to update their records to reflect the new owner.  While not all resorts charge a resort transfer fee, the average fee paid to the timeshare resort to process a transfer is over $276.

If applicable, exchange companies can charge a fee that typically exceeds $100, and many timeshare resorts have also begun to charge a ‘club initiation fee’ or ‘education fee’, which can be hundreds of dollars of additional expense.

As you can see, the cost to transfer ownership can easily be $500 to $1,000.  If you only sold your timeshare for $1,000 you understand why it is important to know these costs ahead of time.  This is one of the reasons we do not score a resort if its typical resale is less than $1,000.  When the dust settles, there may not be anything left!

With such a large unknown expense potentially derailing a timeshare resale, many timeshare sellers are opting to cover the cost of the closing to help facilitate the deal.  While this is a great strategy to help sell your timeshare, as with anything make sure you do your research first.

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