- A time-share is usually a unit in a condominium, resort or even a secluded home that can be purchased and used for a portion of time annually. A time-share is usually located in a vacation area and can vary in price based on location and the weeks of the year that the unit will be occupied by the purchaser. People buy time-shares for a variety of reasons. Most use the unit for vacation, but others rent out their unit or use it to barter with other time-share owners so that they can vacation in a variety of places by using their existing time-share unit as collateral rather than paying outright for accommodations.
- Time-shares are located around the world. Geography has a significant effect on the price of each time-share. Some of the most highly coveted units are at Disney World in Orlando, Florida, as well as other locations that boast year-round warm weather. Time-shares located internationally are usually marketed to consumers in the United States through resort agencies, which is a selling point for many buyers. This makes communicating and purchasing such units much easier because the resort company will navigate international laws and offer assistance navigating the country's real estate laws.
- There are two primary methods of ownership with a time-share: deeded and right to use. Deeded time-shares are broken up like condominium units in which purchasers own a portion of the deed to the property and are able to use it for a specific time of the year. With a deeded time-share, the owners must pay property taxes and any other fees that a condominium owner would have to pay. Conversely, under right-to-use ownership, purchasers sign a contract with a company that retains the deed, and the time-share purchaser essentially rents the property for a specific portion of time annually until the contract expires.
Selling the Right Type of Timeshare to Maximize Profit
- When deciding the right type of time-share sales to be a part of, choose a location that has favorable weather all year-round to maximize selling every week of the year rather than just in the peak season. Set up the time allowance system so that each owner believes that he is getting a good deal. There are several types of time-allowance programs to choose from. Fixed-week ownership is defined as owning a unit for a specific week out of the year, which does not change from year to year whereas with floating ownership owners can book different weeks each year and must compete for prime times. Still another option is called rotating--when owners have equal opportunities to use the unit during prime vacation times. While fixed-week ownership can demand high prices for peak weeks, sellers will usually have to settle for a reduced price during off-peak years. However, with floating and rotating time-shares, sellers are able to maximize their potential returns because each buyer has a chance to use the property during peak time at some point during her ownership.
- Unfortunately, the time-share industry has somewhat of a bad reputation for using high-pressure sales tactics to get sellers to invest in their properties. It is important to use caution and approach potential buyers with restraint and respect when selling a time-share because many consumers are wary of time-share agencies and their high-pressure techniques and offers of lavish promotions in exchange for hearing a sales pitch. Be sure to disclose to the buyer other costs associated with the unit, such as maintenance fees and taxes, prior to closing the sale. Another issue to keep in mind in the time-share sales industry is whether the unit is in a location that buyers would like to visit each year. If it is not, it may be best to try a tandem marketing strategy by emphasizing the potential to trade the property with other time-share owners who would like a different vacation. Finally, compare the cost of vacationing in a particular area to make sure that the price of the time-share is competitive with other local accommodations.