Online Timeshare Auctions
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The essential difference between auction trading and the more conventional sales processes based on fixed price advertising is that auctions, whether for timeshares or anything else, promote price negotiation between buyers and sellers. While the recent increase in the number of timeshare auction websites can make trading of timeshares easier, before embarking on this adventure both buyers and sellers need to do some preliminary research and planning. This article provides a quick look into the world of online timeshare auctions and includes tips and information on timeshare re-sales intended for would-be buyers and sellers.
Timeshare Auction Websites:
Although it is not specialized in timeshares, eBay is the most recognized auction website on the Internet and a great number of timeshares across the globe are listed there. Sellers are required to pay a listing fee of about $5 and another fee if the timeshare is sold. Other online marketplaces that deal in timeshare trading are RedWeek.com and Tug2.net, both of which charge posting fees from about $10 for three months to about $50 for one year. You can also look for timeshares to buy (or list your timeshare) on Craigslist. Two other active Internet auction sites are MyResortNetwork.com and Transaction Realty (registration or listing charges range from $10 to $35). Bidshares.com is one of the more established Internet timeshare auction websites where both timeshare resale and timeshare rental offers are listed. You can register on this site at no cost. No listing fees are required before an auction, there are no commission fees after a sale closes and the company does not take part in the final transaction. Other reliable timeshare auction sites are BidforTimeshares.com, TimesharesForAuction.com, and TimeshareAuction.com.
Tips for Buyers:
Buying from timeshare developers means paying the highest prices and (in most cases) being submitted to high pressure sales people. Online auctions, on the other hand, are a great place to look for timeshare bargains because you can usually find a property that fits your needs at a price that you can control. New timeshares depreciate in value after each time they are used and re-sales are typically offered at 75% of their original price, often much less. However, planning your approach is critical to attaining your objective. Don’t even look at timeshare listings on auction websites until you have first:
- Determined the kind of timeshare you want to buy (points program, fixed week, floating, rotating, etc), as well as the unit size you need. The price of timeshares is varies according to location, size, resort amenities, time of year and length of stay. If you aren’t familiar with the different kinds of timeshares, it’s a good idea to visit timeshare forums where you can often find useful information about timeshare and timeshare re-sales.
- Determined the reasons for which you are buying. Are you buying a timeshare unit that you intend to use (a first unit), or is it your intention to trade the property you buy? Buying a timeshare that you will be using yourself will probably cost you more and you should pay closer attention to things like location (the unit should be somewhere that you will visit about once a year), annual maintenance fees, unit size and available amenities. If you are buying the timeshare for its trading value, you probably won’t bid as high since you can be a little less demanding with regards to certain features.
- Decided how much want to spend; set a maximum amount, and don’t exceed it.
- When you find a timeshare property that you like at a price that you can afford, check out the seller’s ‘Transaction History’ (most reliable online auction sites have a rating system for both buyers and sellers) and try to contact him / her early in the auction process. It’s important that the seller be easily reachable and forthcoming with the information you may need. You must know what your payment method options are before the end of the auction, for example.
- You should also know whether the timeshare will be transferred to you as a ‘Quit Claim’ deed (the property is transferred ‘as is’ and anything the present owner owes will be your responsibility) or as a ‘Full Warranty’ deed (the timeshare is free and clear upon transfer of ownership and the previous owner is responsible for any charges or fees that are discovered later). In some cases, the buyer and seller may agree to use the services of a reputable closing company or real estate agent to handle the final transaction after the auction ends.
Tips for Sellers:
If you’re looking to sell your timeshare, the price you set should be based on its market value, not on the original purchase price. Principal factors determining market value (and therefore the resale price you should set) are the present supply and demand for the timeshare, how old it is, its location, the time of year being sold and timeshare unit size. Selling off-season dates for an average timeshare unit can be very difficult, especially since the offer exceeds the demand on most online timeshare auction websites.
When considering which online auction sites to list your timeshare unit on, keep in mind that prices can vary from site to site. Many of the specialized sites such as BidShares.com, BidforTimeshares.com, TimesharesForAuction.com, and TimeshareAuction.com don’t appear to be as active as the more well-known Internet marketplace sites like eBay. This means you should not neglect to list your unit on popular auction sites, even if they don’t deal exclusively with timeshare trading because the greater number of buyers increases your chances of receiving higher bids. List your unit on several websites to expose it to the greatest number of potential buyers. As mentioned above, many Internet auction sites are free.
The most important part of selling your timeshare is pricing it reasonably. You need to learn what similar timeshare units in your resort have sold for recently – and list your unit at a price that is somewhat lower. Also, look at the prices listed on auction sites for timeshare units like yours that seem similar to yours. It also makes a huge difference whether you originally bought your time share unit from a developer or not. Typically the resale price of timeshare units bought from developers will never exceed 65% to 70% of the original price.
Using the services of a licensed real estate agent after an auction sale to draw up final contracts is recommended to ensure that the transaction is fair for all parties involved.
Tags: hawaii timeshare, disney timeshare resale, buy timeshare, timeshare sales jobs
Posted on: Saturday, January 9, 2010 at 4:23 pm 
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