How to Buy & Sell Timeshares
Buying a timeshare is one way to purchase real estate you want to use as a vacation getaway each year. While there are some definite benefits to buying a timeshare, on the flip side, if you decide to resell the property later on, you probably are not going to get more than 50 percent of what you pay. Since timeshares quickly depreciate in value, you need to decide upfront whether the advantages of owning a timeshare will outweigh any loss you might have to take in the future.
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Instructions
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Ask plenty of direct questions whether you are buying or selling a timeshare. Unfortunately, there are lots of scams out there; therefore, buyers need to be careful not to give in to a salesperson's high-pressure tactics. Go home and give it some thought before you buy. Likewise, sellers need to be wary of potential buyers, as not all buyers are serious. Do not give a buyer too much personal information about yourself. Even if a buyer submits an offer, your bank account information, Social Security number and permanent home address is information that should be provided only to the broker or attorney handling the closing.
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Choose a timeshare in a location where you would like to vacation often if you are looking to buy. Location is also a prime factor if you decide that you want to sell the timeshare in the future. Buy in an area that tends to remain in high demand. Decide if a timeshare will be a worthwhile investment for you. Take into account how often you vacation and for how long. If you see yourself as making a long-term commitment, then it is probably worth investing.
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Request several references and check them out whether you are the buyer or the seller. You need objective feedback; therefore, do not accept the names of family members or friends as references. When you contact a person's references, ask open-ended questions, giving individuals the opportunity to offer more information.
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Research the current real estate market in the area where the timeshare is located. Your best chance for selling a timeshare in a market where sellers often outnumber buyers is to list it at a reasonable resale price. The amenities, location, weeks the timeshare is available and time of year that you sell are other factors, which potential buyers are likely to consider before making an offer. If you are in the market to buy, doing your homework is just as important.
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Pay cash. If you can afford it, this is the best way to buy a timeshare. Making a cash purchase can give you more negotiating power to get a better deal, not to mention save you money on high interest rates if you have to take out a loan.
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Talk to a real estate broker or an attorney before signing any papers. This goes for buyers and sellers both. Not only does a seller need to know what he is selling, a buyer needs to know what she is buying. Sellers should provide details about maintenance fees and taxes. Any purchase agreement or sales contract should be reviewed by each party's attorney so that everyone understands all the terms of the contract. Buyers often find themselves paying for unexpected closing costs, which were not included in the contract.
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