Continuing from the previous post, here’s the rest of Timeshares and the “For Sale By Owner” Approach:
STEP #4 Reassessment. Hey, what about the Internet! It’s national in scope and couldn’t cost too terribly much. But which site will give you the strategic exposure you need? Will your FSBO ad be effective or will your property get lost among the others listed there? And who will help you with answers to all of your questions? You’ve already called your resort, and they don’t have a resale program to help you out. (Some resorts have viable resale programs, some don’t.) At this point, you’re ready to turn the whole thing over to your neighborhood real estate agent since most timeshares are considered real estate. Then you discover that most real estate brokers are unfamiliar with timeshare much less getting it marketed, sold and closed. They specialize in traditional real estate (homes, lots, etc.) and therefore, probably will be unable to help you! So you venture out on your own to locate contracts and a title or escrow company to do the closing. Unfortunately, you learn that not all title companies close timeshare! Great. You’ve got to find someone who not only closes timeshare but also will get the job done right and fast not to mention, someone you can trust. Your week is coming up soon and your buyer could evaporate if it doesn’t close quickly!
STEP #5 The closing. Regrettably, you realize that contracts and a deed are needed, and finding a title or escrow company experienced in closing timeshare properties can be tough. Then you begin to worry. Maybe you’d better consult a lawyer to make sure your interests are protected but the legal fees will dilute what you hoped to net from the sale. By the way who pays the closing costs? How is the deed recorded? Will the buyer want title insurance? Will you be at risk from omissions or something overlooked?
STEP #6 Final funding. Whew! And still, the title has to be transferred. And, oh yes, at what point are the funds transferred? Will your buyer trust you enough to send you the money before you have provided him with title? Or Will you trust the buyer enough to pay if you deliver the deed before he has made payment? Will your points be transferable? Will your resort or the management company cooperate with you on the many items needing attention?
Obviously, this is only a snapshot of a timeshare FSBO and isn’t all-inclusive by any means; however, it may contain a few items that perhaps you had not considered if you are planning to put your timeshare on the market a For Sale By Owner.
