Should Resale Companies be allowed to charge an upfront fee?

[charlie1]

I know where legislation stands with this so this is only harmless debate. Most people will counter this that they would not expect to pay estate agency money up front to sell their house.

However this is not a product that sells for 150-500k that I can take 0.75%-2.5% out as my fee. That’s a tidy sum the Estate agents earn.

Timeshare in the Resale market sales mostly for didley squat! So Resale Companies mainly charge a set fee. I cannot see how they make any real money out of this to even cover their overheads with some of the size of their operations.

This opens up temptation by some Resale Companies to be a little economical with the truth on what’s been offered for their timeshare. For example a prospective client makes an offer of sorts, but the Resale Company does not tell the owner how much has been actually offered and only tells the owner they have been offered so much. The owner accepts the offer! This does happen with some companies.

There appears to be no transparency in resale sales not like when you sale a house you know exactly what’s been offered. Not what I am told that’s been offered.

Only my opinion, but if I was able to recognise a genuine Resale Company that had a proven track record of success achieved, if they advertised my timeshare aggressively in their chosen medium or data base. Then I would happily consider a fee upfront and perhaps even a percentage of sale once achieved.

I am aware that some Resale Companies seem to be charging an advertising fee, I would hope they are doing a little more than putting a timeshare on their website.

Any thoughts?

[Carolinian]

Timesharing Today magazine in the US has helped organize an association of professional timeshare resellers, and one of the requirements for membership is not charging clients an upfront fee.  When one looks at the specializations of the companies which have joined this association, all of them seem to specialize in locations or brands of timeshare where there is still a decent selling price.

I have known of some resellers which handle a mixture of timeshares that bring a decent price and those that don't, who charge a nominal upfront fee, like US$25-50.  On the weeks with little value, part of their profit comes from handling the closing and charging the closing costs.  Of course not all of that goes into their pocket, as they have some things they have to pay out of pocket like deed preparation to an attorney and recorded fees to the Register of Deeds.

[charlie1]

Now this makes real sense to me. If I was in the resale business I would without a doubt specialise I would have a doggie division that deals specifically with dog friendly resorts. I would then promote this not to just timeshare owners but in doggie magazines and websites. This could be done with Golf resorts, skiing resorts to name a few and specific types of resorts and yes brand resorts. Theres lots more that could be done and you could create a new Resale Company for Europe that prospective timeshare owners could investigate at a glance.

I would go beyond this to cater for growing market places. Thats resorts that cater for the disabled and single people thats two huge market places that I have been investigating. If I had a pro active Resale Company I would be approaching resorts on how they could make their resorts more receptive to these two huge market places. They don't have to lay out any real money.

This Resale Company with a little thinking could market easily for non timeshare owners plenty of this has been discussed on past threads. I wonder if any of the Resale companies would consider this as I know they visit this forum. Can I have a share please 

Timesharing Today magazine in the US has helped organize an association of professional timeshare resellers, and one of the requirements for membership is not charging clients an upfront fee.  When one looks at the specializations of the companies which have joined this association, all of them seem to specialize in locations or brands of timeshare where there is still a decent selling price.

[charlie1]

Do we have any owners who have had experience of selling or buying successfully with a Resale Company? Can you share that with us?

[Carolinian]

Do we have any owners who have had experience of selling or buying successfully with a Resale Company? Can you share that with us?

The first three timeshares I bought were through a resale company, Outer Banks Resort Rentals, which has a physical office in Nags Head, North Carolina on the Outer Banks.  The first was listed by an individual owner, a summer 2BR week, and he was asking $3,500.  I offered $2,000 and it was accepted.  The second and third were both association resales, and I offered slightly less than what they were offered for, which was a good price to begin with.

As to weeks I have sold, I have used the online website, MyResortNetwork.com to sell an Australian week, a Caribbean week, and two South African weeks.  They charge a small advertising fee and that is it.  The last three brought more than I had paid for them, but I took a small loss on the first one.  Since the Oz dollar had rapidly appreciated against the US dollar and was continuing to do so, my maintenance fees were skyrocketing, so I was anxious to cut my losses.

[charlie1]

If buying from a Resale Company ensure that you ask questions. This is just a few below

There are some great bargains to be had but its not all about the cost.

1) Who is the resort affiliated too
2) What is the trading value if you intend to exchange. For example RCI will have specific RCI points values. RCI weeks will also have a points value but this will vary according to the popularity and demand of that week on a seasonal basis.
3) Can you obtain a set of club rules for me.
4) Is there any limitations placed if I want to use other exchange companies
5) Does the resort have an exit strategy?
6) Whats the length of the lease? some are still promoting Devoncourt (UK) yet it has only just under 2 years left on the lease.

[charlie1]

I have noticed that Timeshare Hypermarket have introduced sellers the opportunity to personalise their message with of course a protective disclaimer this is a positive step in the right direction. This may give you an edge and it would be interesting to see what you can do and what exclusions they may have regarding your message. Maybe images, what about a view from your apartment, local tourist board so those considering your resort can check out whats in the area, past exchanges will show trading power and the options thats available etc.

I would be looking at anything that could be viewed as an advantage. My apartment has a spa bath and a prime view overlooking the bay. My resort has an exit strategy, my UK week 29 maybe a studio but I can obtain two weeks for my week if you deposit it with UKRE. Or this is a two bed week in Spain my week 30 allows me two weeks for my one week with Dial An exchange. We have one of the lowest maintenances in Spain could be another example. The resort allows you to swap internally within the  resort subject to availability. My resort also allows access to internal swaps within our mini group of resorts.

There are a number of different points that maybe applicable to help you promote your week. However you would need to check with Hyper whats allowed.

I can understand the concerns that a Resale Company would have as this would need to have a fairly strict process to still ensure its accuracy regardless of the disclaimer.

[charlie1]

In my opinion having looked into this if a Resale Company has a proven track record using other advertising mediums than I would be prepared to pay upfront. Especially if they specialised in a given market as discussed in previous threads.
I wonder how long it will be before Resale Companies start specialising and approaching specific markets instead of generalising. They could do so much more and actually promote to non timeshare owners as it appears to passive with just the Internet, newspapers and even tv.

[mabel]

I would be looking at anything that could be viewed as an advantage. My apartment has a spa bath and a prime view overlooking the bay. My resort has an exit strategy, my UK week 29 maybe a studio but I can obtain two weeks for my week if you deposit it with UKRE. Or this is a two bed week in Spain my week 30 allows me two weeks for my one week with Dial An exchange. We have one of the lowest maintenances in Spain could be another example. The resort allows you to swap internally within the  resort subject to availability. My resort also allows access to internal swaps within our mini group of resorts.

 Silverpoints should take note!!!

.

[peachie]

Promoting is not the same as selling , why should people be employed to sit and try to sell a nearly unsaleable product with out pay ? they need a basic salary  , just as you and i, its not their fault we got ourselves into this mess............... i am of course talking about legitimate companies..

[charlie1]

Peachie

You need to start another thread if this is of concern to you and see if this is of any interest to anyone.

As your post makes no sense on this thread. 

Promoting is not the same as selling , why should people be employed to sit and try to sell a nearly unsaleable product with out pay ? they need a basic salary  , just as you and i, its not their fault we got ourselves into this mess............... i am of course talking about legitimate companies..