Exchange Company Awards Can Increase Timeshare Value

RCI and Interval International are the 2 largest timeshare exchange companies in the world. Almost always, when a timeshare resort is newly developed, its developer will choose to affiliate the new resort with either RCI (Resort Condominiums International), or II (Interval International). Both exchange companies have a similar system in which they recognize the outstanding resorts affiliated with their exchange network, for standards of excellence in important categories, but there are a few slight differences in how each exchange company bestows an award.

RCI designates their superlative timeshares as Gold Crown Resorts. Interval International lavishes its Five Star Award on their premier timeshares. What does it mean when an exchange company bestows such a recognition award on a timeshare? Does it compare to the vaunted Michelin Guide's 4-star rating? Or is it just a lot of meaningless hype?

Actually, a Gold Crown Resort or Five Star Award rating is as coveted in the timeshare industry as those Michelin stars are by restaurants and hotels. A premier designation is an outside validation a resort's claim to quality, boosting the prestige of the resort. It assures both buyers and existing owners that the timeshare management is committed to providing high quality amenities, superior service and excellent maintenance. Also, because exchange systems trade accommodations of similar quality, owning a timeshare that has received a recognition award gives you an entree into other award-winning resorts.

Unfortunately, recognition awards do not always guarantee similarly luxurious accommodations and amenities. Here's how the awards stack up:

• Interval International's Five Star Award is the only level of award an affiliated resort can obtain. There is no 4, 3, 2, or 1-Star rating. The 5-Star rating is based on its own Quality Rating Survey which rates five general criteria: area, site, amenities, units and guest services. "Scores are weighted according to the type of vacation experience," explains II spokesman Chris Boesch. "For example, a resort in an urban area may not be required to have a full-size kitchen but may offer more in the way of guest services." Once a Five Star Award is given, II monitors continued quality via guest comment cards. (This is why it's so important to keep II informed by completing your guest comment card at the end of your vacation.)



• RCI's Gold Crown Resort is based on a detailed list of specific criteria that a resort must meet to be recognized. Two lesser levels of recognition are also offered: the Silver Crown Resort designation for resorts that come close but not quite up to the gold standard and the RCI Hospitality award for resorts that meet a minimum standard of excellence. RCI also uses guest comment cards to monitor continued quality. To maintain a Gold Crown Award, however, a resort must also continue to meet specific requirements for resort amenities, guest services, unit amenities/interiors and resort maintenance.
  

You'll note that RCI uses a rating system with a hierarchy of benchmarks while II uses more of a checklist. Without a lesser number of stars to denote various levels of quality, II's Five Star Award can be a bit misleading. Not all II resorts receive a Five Star Award, of course, but neither does the award guarantee quite as discernible a standard of quality as RCI's Gold Crown award. You can't necessarily assume that an II Five Star Award resort will be comparable to hotel that receives a AAA 5-diamond or Mobil 5-star rating.

In 2006, rating organizations in the United Kingdom imposed a new program that rates all of the nation's accommodations by a common set of standards. The same rating criteria and guidelines are now used by VisitBritain, VisitEngland, VisitScotland, VisitWales, the Automobile Association and the Royal Automobile Club to determine the number of stars to award a hotel or resort. Each organization accepts the others' ratings and ratings are jointly published.

While this won't change II or RCI timeshare ratings, it will provide consumers with a more exact idea of a timeshare resort's quality. Consumers might demand more details about an II Five Star Award resort that only receives a 3-star rating on the UK's national rating system. While hotels and resorts are not required to participate in the national rating system, those that don't are prohibited from being promoted by UK tourist boards or journalists. The system doesn't have a specific category for timeshares, but will evaluate them if the property is mixed-use or offers rentals. Properties pay an assessment fee to be evaluated.

A program similar to the UK's national ratings system may never "cross the pond," but some standardization would certainly benefit consumers and timeshare owners.

What You Should Know Before You Sell Your Timeshare

Selling a timeshare is not much different than selling a house or condominium: You place it for sale, and after you have located your buyer, hire the services of a Timeshare Title company to assist you in the legal paperwork involved.

Do I need to hire a real estate agent to sell my timeshare?
No, you can easily sell a timeshare yourself on TimeshareGiant.com. Although hiring a legitimate licensed real estate broker can greatly benefit the marketing and sale of your timeshare, it is not a requirement. On Timeshare Giant we provide timeshare sellers with a variety of timeshare advertising packages at extremely attractive prices. With the most expensive and high-profile ad package, the cost is only pennies per day, and gives the seller complete control over the marketing and sale of the timeshare. On Timeshare Giant you pay no commissions and no upfront fees.

How do I set the selling price for my timeshare?
When you originally purchased your timeshare, you paid what we call 'full retail'. Unfortunately, when the time comes to re-sell your timeshare, you will not be able to recover your initial purchase price. The timeshare resale market is a very competitive arena. Buyers are shoppers. In today's marketplace, buyers have a lot of choices, and the name of the game is price. They want value. To be competitive with other folks who are selling timeshares at your resort, be willing to price your timeshare for 30-60% less than what you paid.

Do I need an appraisal to sell my timeshare?
No, you do not need an appraisal to sell your timeshare and, most likely, you didn’t receive one when you purchased your timeshare.

Do I need an attorney to sell my timeshare?
Although some states, such as Lousiana, do require real estate owners to enlist the services of an attorney in the sale of any real estate transaction, most states do not require you to hire an attorney to sell your timeshare. After the task of locating a buyer is accomplished, most sellers simply use the services of a licensed and bonded title/escrow service to perform necessary legal services, prepare legal documents, and collect/disburse the funds from the sale. Documents are reviewed by the title/escrow service’s attorneys so you do not need to hire your own. Timeshare Giant recommends Timeshare Title Inc. for their prompt and accurate timeshare closing services. Their prices for their escrow services are also very reasonable. Click here for more information on timeshare closing services. Remember, if you post an ad on Timeshare Giant, it is not a requirement to use our recommended timeshare escrow service, Timeshare Title Inc., after you've located your buyer. We've included an easy link to Timeshare Title's services throughout the TimeshareGiant.com website for your convenience.

Can I sell my timeshare if I’m still financing it?
Certainly you can sell your timeshare if it is still being financed. You simply pay off the timeshare loan with the sale proceeds before the deed changes hands. The Title/Escrow company you employ will assist you in disbursing your loan payoff funds.

What happens to banked weeks when I sell my timeshare?
At the time you have located a buyer for your timeshare, if you have already banked weeks with an exchange company, your deposited week(s) are no longer considered part of the timeshare property. Remember, your membership with your exchange company is separate from the ownership of your timeshare. At the time you decide to sell your timeshare, it is important not to deposit any more weeks from the timeshare you are selling, into your exchange company. Leave all future weeks available for your buyer's use. In my experience, I've found it more difficult to sell a timeshare if the current year's week, or any future weeks, are not made available to the buyer. It's difficult for a buyer to justify buying your timeshare if they are unable to use the timeshare during their first year of ownership (or future years). The cleanest, most simple way to sell your timeshare is to make all weeks, current and future, available to the buyer.

Can I transfer banked weeks from previous years to my buyer to 'Sweeten the Pie'?
Absolutely! Many sellers use their banked weeks from previous years as a bargaining tool, or to simply make the timeshare more irresistable to a buyer. Buyers in today's timeshare resale marketplace are looking for real value, and if you're offering banked weeks from previous years for no additional cost, buyers love it! To transfer your banked weeks to your buyer, contact your exchange company and learn their procedure and rules in connection with transferring your banked weeks to your buyer at the time your escrow closes.

How does the right of first refusal affect my timeshare sale?
Some resorts have a right of first refusal (ROFR) clause in their Covenants, Conditions, and Restrictions (CC&Rs). This means that once you and the buyer come to an agreement on the sale of your timeshare, the resort where your timeshare is located reserves the right to step into your buyer's position and purchase the property under the same agreed terms and conditions. If this seems overwhelming or confusing to you, don't worry! The Title & Escrow company you employ to assist you in finalizing your sale is very knowedgeable in this process, and will be able to easily help you through it, if not completely take care of the process for you!

How long does it take to close on a timeshare sale, once my buyer is located?
The average timeshare sale process can take as little as 2 weeks, and as long as 1o weeks to complete. Variances depend on the resort, and local laws and procedures. In my experience, I am a big believer in using the services of a timeshare title and escrow company, such as Timeshare Title Inc., to assist in safely and legally affecting the transfer from you to your buyer. Remember: Most timeshares are Real Estate transactions, and you want to deliver clean title to your buyer to avoid any future possible legal repercussions.

For a checklist of information buyers will want to know about your timeshare, sellers can click here for Timeshare Giant's helpful Timeshare Seller's Checklist.

How to Market Your Timeshare

So you have decided to sell your timeshare property. How do you get started?

Well, there are a couple of ways, you can sell your timeshare using free web tools, promote it yourself online, or contract with a timeshare realty broker. In this blog we are going to speak only about doing it yourself and the free tools that we have online that allow you to market your property using the power of the Web. We'll do another post in the future on selling your timeshare through a timeshare realty broker.

The first thing that you should have is some great photos of your unit and the timeshare resort property. You can get these from your resort property's website and property manager or snap some pictures the next time that you visit. Without photos your property will simply sit there so make sure that your photos are great!

On our sponsor's site, Timeshare Giant, we have two types of timeshare resale listings, a totally free one -- no strings attached -- and a paid listing. The difference is that with the paid listing you will get ad-free space to advertise your site. The free listing will have an ad at the top. Both types of listings will allow for great exposure and allow visitors to find your listing through our site search features.

When you write the content for your advertisement, keep in mind what potential buyers want and need to know. Take time to "romance" your listing. Romancing your listing means focusing on the features and how they benefit your potential buyer. Make sure that your listing is truthful and that the photos are current. If you are not sure what to price your timeshare resale at, ask your resort property manager for advice. Remember price will be one of the most important features for your advertising content as well as location. Potential buyers will be shopping by price, time of year, or by location most frequently. If you are priced too high, your listing will sit. When it comes to price, be realistic, it is better to move to a close on the property than to sit for months without even a nibble. If you feel like you want to sell your timeshare quickly a timeshare realty broker may be the best bet for your need. Professional timeshare real estate brokers will understand the market from a professional level and able to offer more authoritative guidance as well as selling comps to help determine the best price for your timeshare resale.

In addition to advertising your timeshare on our site, you may want to consider promoting your site yourself by creating a mini website for it. Many Internet service providers provide free web space and even site building tools to allow you to post some photos and content as well as a link to your email. Also check with your resort's management to see if they have a list of local units for sale that they can add yours to as well. You may even want to consider online advertising although it would not be free in this case pay per click may be a very cost effective way to get the word out that you have a timeshare unit for sale.

One of the big things to keep in mind as you sell your timeshare is what is it that made you want to buy it in the first place? Was it the location, was it the week that matched your schedule, was it the amenities of the property? Whatever it was that clinched the deal for you, make sure to cover that in your advertising content in your listing text or your other marketing materials. Let your buyer know what made you fall in love with your timeshare, they may just end up sharing your enthusiasm and be your buyer.