The chances for making a profit are slim. This is a cold, hard fact and better you know it now than later. We are taking a bit of a backwards approach by discussing this since most people, when they buy a timeshare, don’t usually think about making money on it. Instead they’re thinking of how they’ve made an investment in future vacations.
The companies who first sold you the timeshare have very effective strategies and you can learn a thing or two from them. First, take note that they tend to make their sales pitch during the "vacation-heavy months." June, July, and August are the best target months if you’re going to try to make money on a timeshare.
When selling your timeshare to make a profit, be prepared to be patient. You need to wait until the property value rises. And sometimes it won’t. There is often a recurring theme in failure– false expectations. Don’t count on making hundreds of dollars in a few short months,.
Renting Your Timeshare to Others
Remember, that every timeshare unit is used by many people throughout the year. You can rent your portion of the timeshare to others who want a "luxury" vacation. Your renter gets a great deal– the services of a full service, upscale hotel for a good deal.
Your time-share owners club may offer this as a service. In this way, you’ll be preaching to the converted. People who look at these classifieds are interested in the kind of unit you are renting. Or try approaching other owners (or posting a classified for this purpose). People who own timeshares before and after your dates may be looking to increase their time.
Post classifieds on as many free internet group sections that you can. Most online services such as Prodigy, AOL, etc have free or lost cost advertising.
Sales people who promote timeshares are very good at what they do. When they are doing their sales pitch on location they can count on the fact that there will be people there with money who will jump at the chance to vacation here at the same time every year.
According to Dana Dratch at www.bankrate.com you can save 50% to 70% when you buy a timeshare, if you know where to look. These deep discounts mean you could return the timeshare to the market and sell it for a good profit.
The website at Money Central (www.moneycentral.msn.com/content/Savinganddebt/Travelforless/P90804.asp) says think used. Try to buy from the owner rather than the developer. The owner wants to sell. "The rule of thumb is 50 cents on the dollar, on the high end," says Rogers. Shop around, though, he says, "and it can get better than that."According to syndicated travel columnist, Ed Perkins, "You can find some of them for 10 cents on the dollar."
Be careful, though. If you buy from the owner you may not get all of the "package benefits" that you would if you bought from the developer.
Find a Great Deal
As with all things, shop around and shop carefully. Don’t rush it. Your phone and the Internet can be your best tools. Google the keywords "time share" "by owner" and you will have no end to your choices. A good deal's only good if you get what you want.
Once you find a property you like, research other units in the complex. See how they are the same or different from the one you’re looking at. And check to see if the developer is still selling units. Find out what the retail prices are. It’s suggested that you ask the current owner for references. And if you can, visit the complex and chat with other owners. Find out if they’re happy with the complex or dissatisfied. It’s very important to know if guests are happy with the management. To get a good idea of the place, rent for a week.
Are you really getting a deal? Compare the price of a week’s stay at the complex you are considering with other luxury vacations. Don’t forget to add in all the fees of the timeshare.
Dana Dratch at www.bankrate.com says "Decide what part of the time share appeals to you (travel or this particular property), and keep that in mind while you're dealing. If your aim is to use your purchase as a bargaining chip to trade for time in other properties, you want an attractive location, preferably during a peak season to give you the most leverage. When you talk to other owners, ask how tough it is to get your reservations or trade for other accommodations. And if you want to trade, is there a fee?
Whatever you do, don’t get scammed. The timeshare market is like any other business. There are scammers out there who only want your money and maybe, your personal information. The first they pocket, the latter they sell.
If you are careful, you can make money selling timeshares. Follow the advice above and you make experience success..