Rent vs. Resale
I am new to this and have looked at all the postings at our timeshare in Cabo San Lucas at the Playa Grande. It appears that rentals go faster than sales. Is it possible to post a rental with the option to buy by stating in the posting. I have not composed a posting yet, but would be very open to any suggestions.
Fran K.
frank1385 wrote:I don't see any reason why you can't do it, though Redweek might not allow it on their site since the fee to list a "For Sale" ad is greater than the fee to list a "For Rent" ad. If you do provide an option to buy, I suggest you offer to apply the rental price towards the sale price if the renters decide to buy within a certain time period.I am new to this and have looked at all the postings at our timeshare in Cabo San Lucas at the Playa Grande. It appears that rentals go faster than sales. Is it possible to post a rental with the option to buy by stating in the posting. I have not composed a posting yet, but would be very open to any suggestions.
Mike N.
Frank, I sold our first timeshare back in 1987 this way.
I have many times on Redweek and Tug and other sites talked of this and recommended it to others asking!
We had two friends last five years ask me about it and sold,one first year and second friend took two years to sell it.
What you do is run your ad to rent with option to buy. Don't play games like some of these greedy owners and try jacking your price to cover your rental fee either!
You as a owner wanting to sell need to remember this is a no lose for you and renter. The worse that can happen to you is you rent for the year without selling it. Buyer gets to try out the resort they have interest in before going into debt.
After talking to someone wanting to rent and if buying comes up then write up your contract with all the numbers listed so there is no misunderstanding later when the buyer starts trying to make better deal.
When we sold our renter priced out our unit and it was $9500 plus closing cost. They rented our unit that slept thirteen people for $1200. Selling price was $4500 minus $1200 plus closing cost and they couldn't wait to buy our unit.
The biggest problem is if you really want to sell over renting then remember this only works once a year so try and pick someone serious about wanting into your resort! Also don't rent for cheap price just to get someone in because many will act like they have interest to buy and get cheap rental fee. Charge what ever the going rate is so if they don't buy you did cover your expenses for the year.
We deducted the full rental on our sale but with high maintance fee's you may want to deduct rental minus fee or if you really want out then give full credit or half credit to buyer.
We told our renter and our friends did same thing and that was to go enjoy vacation and go to presentation and see resort and hear offers and pricing and grab the freebies and do not buy until you take some time to think about it.
This way your not pressured and if you really like the resort then we will sell to you within two weeks of stay.
Now is worse time in nineteen years of timesharing to sell from what I have been told and read from realtors in timeshare sales. Make your pricing work for the times we are going through if you want to sell!
PHILL12
Phil L.
Phill ty so much for the information. I have been trying to respond to ur helpful message but it keeps coming back to me. I will definitely use ur advice. However, my last message was more lengthy and not sure if this will go on the post. But ty so much!
Fran K.
Frank if you wanted to you could run ad to sell with option to rent also!
When you write your ad just list it as for sale. Now down in the write up section (details) you can state with option and list some of your details like willing to make deal within so much time of your stay and fact that all or part of rental fee will be used as the down payment from price.
As long as you don't try and run two ad on same listing you should be fine.
You can talk this part over on phone or e-mails.
PHILL12
Phil L.
hi phill....I dont see anyone buying and it is more expensive to post....we are going to try to rent as they are flying at our resort.....we shall see....but i dont know how to do paperwork if someone does rent...and i think we have a good chance....you can check out playa grande in cabo and see too. ty for all your help
Fran K.
Frank for the rental agreement go to top of forums page and hit search forum. On there type in rental form and you will see post on renting.
Many of these have a copy of a rental form you can copy to use.
The second post on this list has one near the top.
Read it and write what ever fits you like the option to buy and details.
After, you can fax it to renter to have signed and they can send back to you with what ever payment you are requesting.
Most owners require half payment with signed contract and full payment when unit is in the renters name and you should send copy showing you are renting your unit and not a exchange unit. Good example is copy of your paid maintance fee for that year or a copy of your notice from home resort showing the week you have.
Most owners also give them a resort phone number so they can check you out as the owner and make sure their name is listed for that week.
Don't forget to list any details you want on this contract. Saves problems later if your renter becomes a problem!
PHILL12
Phil L.
Last edited by phill12 on Dec 23, 2008 09:10 PM
Today I have had an education in renting/selling. I belong to a point based system with 20 resorts and am interested is selling. Before doing this I talked to three people in the industry. The best advise I have received was from within our organization. Don't sell. hold the property, do rentals or sell the points Renting will cover your maintenance fees and selling the points will cover most of it... Try and do a break-even (or close to)for 5 years and the price should be much better (we all hope).
But I like the idea of rent with the option to buy...
Andrew J.
andrewj35 wrote:Today I have had an education in renting/selling. I belong to a point based system with 20 resorts and am interested is selling. Before doing this I talked to three people in the industry. The best advise I have received was from within our organization. Don't sell. hold the property, do rentals or sell the points Renting will cover your maintenance fees and selling the points will cover most of it... Try and do a break-even (or close to)for 5 years and the price should be much better (we all hope).But I like the idea of rent with the option to buy...
Andrew it sounds like good advice because prices should go back up sometime.
My advice would be the same if you own a resort you love using and it is worth keeping to you.
Many owners that can still pay their payments and fee's will regret it later when prices do go back up and they sold for almost nothing. How would you like it if you spent $10,000 and now sold it for couple thousand. Three years down the road and your wishing you had it back at vacation time and might re- buy at higher price again.
People that just want to dump their timeshare even though they can still afford it should have never bought in the first place.
If you read sales ads you will notice most of the best resorts don't pop up on these giveaway list often. When they do it is off season /swing season. These seasons you can always find good prices on resale anyway!
People believe all timeshares are now worthless and this is far from true (IMHO) because you can go on e-bay and find cheap deals. Most are also cheap timeshares to start with or off seasons. There are thousands of timeshare owners out there that own and love their resort and plan on using it which is why they bought it!
You might run your ad on Craigslist free and write all your details of option to buy and list it in your resort area!
Do be careful though and have all e-mails go through Craigslist. This way you pick who you want to contact.
PHILL12
Phil L.