Timeshare resales: Do you need a licensed broker to buy or sell?

March 17, 12:40 PMTimeshare ExaminerMark Silverman

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Larry Hayden, Timeshare Resales Worldwide

Peter Greenberg, travel expert, received an inquiry from a listener to his radio program, and he was looking to rent or buy a timeshare from a company he found on the internet.

I was asked if I knew anything about the company in question, and I must say, it was a nice web site, with a good selection of properties, if not much quantity at most of them.

Pricing for the resales was all over the map, some unrealistically high, others in line with the generally weak secondary market.

But one thing jumped out at me as I went through the site and its offerings. There was nothing indicating that this was a licensed real estate company. And timeshare is real estate. In many cases it’s deeded, and even when its not a direct deed, it represents an interest in real estate.

Most states require that anyone involved in the sale of real estate be licensed.

But is it important for the broker in a timeshare resale be licensed, when the sale is often a couple of thousand dollars or less?

I turned to resident expert Larry Hayden, owner of Timeshare Resales Worldwide, one of the leading no-upfront-fee timeshare resale companies in the business. Hayden has been in real estate for forty years, and specializing in timeshare almost as long as there has been timeshare.

He confirmed several things, including a few that hadn’t occurred to me.

He compares the growing numbers of unlicensed sales people treating timeshare as “any old commodity like a salesman selling a pair of shoes”.

Is it safe to buy from an unlicensed web site?

You do not have the protections which are automatically built in to the real estate industry. If the people only knew the extent of protection afforded through a licensed timeshare broker, they would not venture away.

For example, Hayden points out, “the licensed real estate broker is someone to whom you can seek help or possible redress if your timeshare purchase is not as you contracted for.”

There are state agencies that can hold a real estate agent accountable as well, if you run into a bad apple. That doesn’t exist for a non-licensee.

Will you pay more if you deal with a broker?

I agree with Hayden when he responds, “Buyers will NOT necessarily be able to buy at a lower price directly from a seller. Sellers on their own usually price their units’ way above fair market resale value. Brokers can assist buyers by showing comparable sales to the seller, and factually justifying an offering price that is at fair market value even if it is less than the asking price.”

If you look at sites where sellers set the price on their own, they are unrealistically high. The slap in the face to most sellers, is that except for a very few properties, most of the time the secondary market is pennies on the dollar.

When you deal with a licensed agent that does not collect a dime til after a sale is made, that company has a vested interest in getting the best possible price, since they receive a percentage. Like wise, they have an interest in making sure the price is right, since if it’s too high, they won’t make a sale, and won’t get paid at all.

And what happens to those folk that price their timeshare unrealistically high? They get frustrated and become potential victims of the post card companies, ripping them off for thousands of dollars.

Other Protections

Escrow and all the paperwork will be handled professionally and promptly. Title searches will be complete, and buyers are secure from buying a timeshare, only to find later that there are fees that have not been paid or loans outstanding.

Timeshare Resales Worldwide is not the only company not charging an up front fee.

Ask any company you consider listing your timeshare, whether for resale or rental. Understand their fee structure, their percentage, and whether they are licensed. 35% of the selling price is not unusual. In most cases, the fee is a higher percentage of low-priced sales, and a smaller percent for sales, say over $5,000.

Enjoy your timeshare. When you and your family are done with it, get an accurate assessment of its value, and then be done with it. If you’ve enjoyed it for ten, twenty or more years, you’ve probably gotten your money’s worth. I've said it before, and I'll say it again; when the computer on your desk reaches 5 years old, you don't complain that it has little resale value.