RESALE RUMOR direct from DVC

[Dean]

I don't think it's fair to pick on brokers. They serve a vital link between buyers and sellers by providing some liquidity for an otherwise illiquid product as well as providing access to inventory for buyers. They also provide a certain amount of confort level for both groups. DVC is an exception because of it's high profile, price structure and reputation. This makes DVC easy to sell privately and for a higher profit. Companies like those discussed on this board are good people trying to make a living. There are some scam artists out there including those (most if not all) that require any type of up front fee. I am not likely to sell anything through a broker due to the fees involved but would not hesitate to buy from a broker, I have a number of times.

 

[DVCajun]

I haven't used a timeshare broker yet but I have several unfortunate experiences with real estate brokers. The only reason real estate brokers get any business IMO is because they have a corner on the real estate computer program that lists properties. I find their practices as a whole to be nothing short of unethical. I listed my home by owner once and literally had to beat the real agents off with a stick. It got so bad I had to change my phone number. This was in addition to catching some of them pulling ALL of the information sheets out of my sign out front (I learned since that this is a wide spread practice). And the percentage they get for their "contribution" to the sale (i.e. listing it in the computer) is nothing short of rape. I remain convinced they're unnecessary-- if they didn't exist, we'd find another forum to sell our property. I'm anxious for that day to arrive.

 

[workingmom]

I don't think it's fair to pick on brokers. They serve a vital link between buyers and sellers by providing some liquidity for an otherwise illiquid product as well as providing access to inventory for buyers.

I agree that in the housing market brokers provide an important service to many homehunters and sellers. Furthermore, in the generally housing market commissions are significantly lower than 13% too.

I do think that these timeshare brokers are taking advantage of people simply because they know that the AVERAGE individual that owns a timeshare has higher than the national median income so they are out to get a slice of that income. They do not charge a higher commission because they provide more services or because it is so much harder to sell a timeshare but because owners of timeshares can afford to pay more.

One might argue that the reason timeshare brokers charge such a large commission is because timeshare properties have a sales price per capita much less than that of an average single family home. But I will counter that argument too by saying that the footwork involved in selling DVC for example is nothing compared to selling single family homes. DVC sells itself. Generally, people contact brokers to make an offer. These brokers don't have to provide any services such as showing the home, getting sales price comparisons for you, getting average utility bills and so on. For the "services" that they provide, they should charge a fraction of what a typical real estate broker charges...and certainly NOT nearly twice the charge of a typical real estate broker.

 

[Dean]

Sigh....I sometimes find DVC owners such a sheltered group. I've heard it said that only about 2-3 percent of timeshare that are offered for sale are ever sold and I suspect there's some truth to it. Look at any timeshare listing websites over time and you'll see that there is little movement of inventory. Even for DVC, some of the listings are there month after month, usually large ones or no points available. The timeshare brokers often discussed on this site tend to offer great service. Do they truly earn what the company charges for "timeshares"? Likely not on DVC but you must look at the entire picture. After all, they must make enough overall to justify staying in business. Keep in mind that were talking at most 15% with a $1500 minimum (on the high side). At that rate a broker and agent working in tandem would have to sell a couple of listings a week at least. Remember that on a $150,000 house, 6% is still $9000.

When looking at timeshare resales it's location, resort and time of year. The top listings will sell if priced halfway reasonable, the rest rarely sell unless priced at rockbottom. Many timeshares are not worth any more than the minimum broker commissions and sell like it (or rather don't).

I'd guess most buyers and sellers don't know how to look other than what's talked about on this site and the Billboards they see up in the Orlando area. Many wouldn't know how to proceed with a sale even if they had a buyer and had agreed on a price. I don't begrudge honest timeshare brokers but I could sure vote for a firing squad for those shady companies that wrangle $299-599 up front out of unsuspecting timeshare sellers. They promise them high sales, high rentals and many times "have a buyer Mr. X just waiting to buy this property". Of course once they get the money you'll either never hear anything positive from them again or be offered a rediculously low amount. These are the companies that give the business a bad name.

Besides, if one wanted to buy DVC, there really are currently very few choices outside of a timeshare broker. There's TUG and a couple of free listing sites and also the auctions. The total percent of DVC listings available through other than a broker is very small and from what I've seen, the prices are actually higher in general than those through a broker.