These days, even a quick search to buy timeshares online will bring up articles and forums discussing timeshares for sale for $1. Why are timeshares available at such crazy discounts (sometimes priced from $1 to $100)? Is it a good idea to buy timeshares from owners on FSBO sites?
As licensed timeshare brokers, we are prone to being a bit biased. Still, the truth is that you they can find great timeshares for sale on FSBO sites; but there are almost always other considerations. We offer our opinion here:
Why are timeshares for sale for $1?
The main reason you can buy a timeshare online at such deep discounts is because the current owner is not using their property or can no longer pay their maintenance fees. Owners in this situation are usually just looking to “unload” their vacation property and get rid of their annual fees.
So how do you buy timeshares safely from FSBO owners like the ones described above? The trick is ask the right questions, do your research carefully, and know who to talk to. Here are some key questions for FSBO owners, along with a brief explanation of why they’re important.
- The first question you should ask the seller is: “Is the deed paid in full?” This question is essential. If the deed is not paid in full, you will not get a timeshare for $1, but will inherit a debt.
- You will also need to ask for and get written confirmation from if the owners are up to date with their maintenance fees or fines. If there is an outstanding debt associated with unpaid fees or penalties, will the seller take over the remaining balance or will you inherit that shortfall?
- Who will pay the closing costs and timeshare transfer? There are administrative costs associated with everything from document preparation to taxes, as a buyer in a FSBO transaction, it is important to discuss whether you (the buyer) will cover the closing costs or if the seller will bear them.
- Discussion who will handle the closing and escrow process, and investigate that closing company on our own.
- Finally, and perhaps most importantly, Make sure the owner actually has the right to sell your timeshare. In some cases, an owner does not have the legal right to sell their timeshare property, so any contract they sign may not be valid. Contact the resort directly if the seller can’t provide proof… but don’t be fooled by their offer to buy from them – you’ll spend thousands of dollars more.
- As with any real estate transaction, it’s a good idea hire a lawyer to take a look at all the contracts and associated procedures.
These are just some of the legal and logistical aspects of buying a FSBO timeshare. There are also convenience issues. When you buy a timeshare directly from the owner, your options are very limited. You’ll be forced to make a decision based on what was a perfect fit for someone else’s family; but not necessarily yours.
If you know the specific resort, season, unit size, and type of use you’re looking for, you might have luck doing a very specific search, but if you’re just looking for good deals, you’ll find that you’re short on options.
If all of this sounds too complicated, or if you want access to virtually any property, week, or unit size, you may want to work with a licensed timeshare broker.
Brokers will not only match you with a vacation ownership opportunity that exactly fits your specifications, but they will also take care of all the logistics. Just be sure to check your prospective broker’s BBB accreditation and license.