How to Get More Cash for Your Timeshare

Some people buy a timeshare as an investment, only to find they cannot recover the money to put in it. A few others managed to buy low and sell in a boom period, and make some money on their timeshare purchases. Whichever group you might find yourself in, there are things you can do get more cash for your timeshare. Here are some things you need to consider.

First, be realistic about the price. There's a good chance that you might have bought your timeshare after having been pressured into buying. There's also a decent chance that you bought when there was more of a demand than there is today; it was the "in" thing to do. Because things have changed, today you might not get as much cash for your timeshare. In some fact, some research indicates that the majority of people get only 50 percent of the money they spent to buy the timeshare property.

However, you could increase your percentage by keeping the timeshare well maintained and clean. The truth is, most people when they sell their timeshares sell something that is more a shambles than when they were first paid money for it. The temptation is there, when you're finished using the place for a vacation, to push off cleaning or maintenance chores on the next person. Don't--or you'll just hurt your own chances of selling at a decent price.

Also, most of the statistics that have been compiled about timeshare sales were compiled before the Internet was a major force in the industry. Today, timeshare deals are promoted as much online as through real estate agencies. What this means is that you're more likely to get a seller at your price by advertising on the Internet than if you just go through the conventional routes of real estate listings and brokers. To further increase the amount of cash for your timeshare, don't just pick an isolated spot online and advertise there. Rather, look around and find as many places as you possibly can to list it: auction sites, classified ads, travel forums, etc.

Finally, remember that you won't get as much for a deeded timeshare as you will for a floating ownership agreement. On the other hand, the deeded timeshare will often sell at a higher rate than a right-of-use timeshare. So plan accordingly.

You may or may not make a profit on your timeshare. However, if you plan well and market your property aggressively, you should get more cash for your timeshare--perhaps dramatically more. Just have patience and perseverance.

Could it be that an increase in the worldwide travel market might benefit timeshare owners? Possibly. The most recent issue of the Harvard Business Review hints that, due to a boom in tourism, now is a great time to purchase a timeshare. Here's a bit about the researchers and their reasoning.

Paul F. Nunes, who is a researcher with the Accenture Institute, wrote the article along with Accenture's Mark Spelman. They noted that the United Nations is predicting that the number of tourist visits around the world each year will double and reach an estimated 1.6 million by 2020. In the years between now and then, especially during summer's peak travel time, hotel room availability will become harder and harder to find. In the United States, popular tourist spots such as Florida and California will especially feel the crunch. The result: Something the writer / researchers call a "tourism time bomb." According to this scenario, hotels, motels and even bed and breakfasts will not be able to keep up with the demand for rooms. Probably scalpers will enter, trying to sell hotel rooms at ridiculously high rates. This will leave vacationers in a dilemma. They can either spend way too much for a hotel room, which will essentially benefit them only once--during that vacation--or they can look for other accommodations. And perhaps those other accommodations can balance out the high cost with the benefit of being used again and again in the future.
Enter: The Timeshare owner. These are the people who can potentially provide these travelers with an alternative to the high-priced hotel rooms. Those who bought their timeshares before this boom will especially benefit, because they got them at such low rates, and they keep them at that locked-in price. People who are looking for an alternative to hotel rooms, which will be priced higher than they should be, will look favorably at the idea of being part owner of a timeshare for their vacation needs. As a result, timeshare sellers should be able to sell at a very good price. As just one example, Florida timeshare condos might look really good for the huge tourist crowds who visit the Sunshine State.

For some time, skeptics have told people it's a bad idea to purchase a timeshare in order to re-sell at a profit. Typically, it's been very hard for timeshare owners to sell at a profit. If, however, Mr. Nunes and Mr. Spelman are correct, the coming tourism explosion could give many of these timeshare sellers the opportunity to make some money off of their investment.