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Explain to the Timeshare buyer that a deeded timeshare is property that has the equal rights of ownership as in concurrence with other deeded property such as your house. The deed for the timeshare is recorded in the county where the property exists and the owner may sell, rent, pass on down to the children or grandchildren or even give the property away if they want to. Emphases that a deeded timeshare is just like your every day home. Unlike a lease timeshare, they own it forever!
As with any good purchase, you want to protect yourself against scammers or fraudulent purchases. Make sure the company you do business with is a licensed real estate broker. Don't be afraid to request their license number and then proceed to call your state's department of real estate for verification. Also check them out to see if they belong to the Better Business Bureau. To be a BBB member, companies endure intense examinations and must comply with rigid principled requirements. See how many years they have been in business and if there were complaints filed. Dealing with a licensed broker offers abundant protection for buyers and sellers, including that all funds must be held in an Escrow Trust Account until the sale has closed.
Always tell your prospective buyer what you would want to know.
> Do they have deeded ownership or just leasing?
> What days will be available to them and if they are fixed or floating? If it is a floating program, how far in advance do they need to make reservations?
> Will there be annual maintenance fees and taxes>
> Are there any assessments against the resort?
Offer all copies of Covenants, Codes and Restrictions before they buy and finally explain the process for closing and how the deed transfer will be handled.
The best suggestion in choosing color is that you always consider buying “Red" (exchange company color for high season), unless you can be exceptionally flexible to where and/or when you vacation. With red you need not worry about being locked out of any time of year plus it gives you the power to exchange into any week of the year, including the most highly demanded weeks. Some people get a chance to buy at an enormously low price and purposely buy off season (White or Blue) with thoughts of exchanging them using "Instant Exchange" which is doable within 60 days or less prior to travel date. At this time you have the opportunity to exchange for any size, any season, any "color" of week.
You can entice prospective buyers by letting them know that they will have an ownership interest in their favorite vacation spot. That it is a wonderful way to create quality time with both family and friends. Let them know that if they buy today they can lock in vacation prices. They might be interested in the possibilities of exchanges, trades or even renting. Mention how timeshare accommodations often have more rooms and amenities of most local hotels. Ease their mind about upkeep of a vacation home by discussing how maintenance costs are shared by all owners and handled by an individual management company. Last but not least…it can be pass down from one generation to another!
Prospective buyers are looking for the same thing you are in a timeshare: location, location, location!
Is the location in a spot that they will enjoy themselves and is it available at the time of year they want to visit? Other things you might want to factor in are your ownership rights, maintenance fees and who is managing the Timeshare. Keep in mind that prices represent location, size and season!
When prospective buyers want to get financing for a Timeshare - steer them in the direction of a developer program, or perhaps home equity loans and even the usual conventional lenders. Tell them they can anticipate a minimum down payment of 10% with up front charges for taxes, title insurance and annual maintenance.
Naming timeshare property or giving the specific property a color is a common procedure for floating time developers when owners make reservations. These names or colors are NOT the same as the “Exchange Company” colors that are given to “seasons pertaining to exchanging.” The colors pertain to what month's reservations can be made. Example: reserving a prime summer month could be "Platinum", and the mid-demand months could be "Gold" and the low demand months "Silver." There are numerous ways developers have split up and named the time of year, but it all comes down to what is available for owners to make reservations! Make sure you got answer to these types of questions before buying into a floating time resort, because the value differs significantly between high, medium and low seasons for floating time ownership.
In order to get the best buy for exchange purposes you first have to understand resort ratings:
- Just because it has a Gold Crown or Five Star rating it has little to do with exchanges.
- Buy in a high demand area. Think location, location, location!
- Buy in prime season.
– Maintenance costs are never ending so don't buy a resort with an astronomical fee.
- Make sure you buy through a reputable licensed real estate broker.
- “Title Insurance” is offered on most deeded timeshares - make sure you get it!
Explain “banking” to your buyer by answering that if they did not plan to use the specific week that they owned or if they wanted to exchange the timeshare for something elsewhere, they can “bank” it with the resort's exchange company. Usually you will have a couple of years for a “banked” property in which to request an exchange against it. Make sure the owners understand that if they “bank” their property, the exchange company has the right to book someone into that spot. “Banking” can lead to major misunderstanding between sellers and buyers in a resale because it is sometime misconstrued that the “banked” week is still available when actually a successful exchange must be confirmed before they are able to use the week.