Since most of us are entrenched in the idea that the committee responsible for residential real estate is typically 6 percent, it’s worth discussing why time brokers charge a higher percentage.
First, keep in mind that 6 percent on a typical home may be a low percentage, but because the sales price is many times higher than a timeshare, 6 percent is a lot of money.
A timeshare sale in the same way involves a lot of work and expense, like selling a house, sometimes even more, but the dollar amount of the commission is so low that most traditional advocates consider selling a timeshare It’s a waste of time.
So yes, the timeshare percentage is higher, but the dollar amount is much less. This is a high percentage but low commission dollar amount. Compared to source sales, timeshare is a completely different industry with very low sales prices and proportionally much higher costs.
It is very difficult and expensive to properly market the sale of a timeshare.
In another sale of developer time, it is well known that marketing and commissions paid by the buyer as part of the purchase price total around 50 percent. That’s one of the reasons the resale on a typical timeshare is only a maximum of about 50 percent of what was originally paid for.
In the timeshare resale industry, brokerage commissions charged by licensed real estate brokers average between 20% and 40%. Timeshare resorts and timeshare developers usually charge 25% to 40% for resale operations.
Additionally, most licensed real estate agents have a mandatory minimum commission that ranges from $2,000 to $3,000, with the average being around $2,500.
Because the average resale price is so low, the committee’s mandatory minimum is required if the broker is to remain in business, while the proportionately higher expenses are professionally relevant to marketing a timeshare. The cost of a sale for a broker is listed at the same low price as it is listed at a higher price.
Again, the average commission of $2500 is not a lot of money compared to the work starting the sale, after that with the buyer and seller until it closes, the responsibility and cost of the whole process.
Remember that if you sell without an intermediary, only you are responsible for the problems.
Our company gets paid a fee only if we manage to sell the timeshare, we all have a hard time whether it sells or not, and we strongly believe that this is the only way it should be.
We are the first reselling company, and happy to do it honestly and without taking any upfront payment.
Our broker is one of relatively few other brokers that have the same policy.
We are well aware that we could make many times more money and could easily develop some compelling enough regime to prove the reason sellers pay upfront fees: it’s a lot less work and a lot easier to find people willing to pay for a while. shared output, which is to find buyers who are willing to pay to buy one!
However, we are firmly committed to our policy of a reasonable fee for service, only after which the service is performed.
In conclusion, when considering paying a timeshare commission, focus on the dollar amount to get the job done, not the commission percentage.
And when comparing between brokers, the lowest commission offered may not be the most sensible either.
If the goal is really to sell the property, a broker with an average commission who spends what it takes and actually sells the timeshare is certainly a better choice than choosing a broker who is willing to list with a low commission, but not very long ago. , and not sell the property.
You can be sure that no pay upfront brokers like us only get a modest net return on the high percentage, but low dollar amount of payout.
The worst thing a seller can do is take the attitude that the seller said to the Broker, “I’m not going to pay” such a proportion “to sell my turn!” – Then foolishly go back and repeatedly pay upfront fees to companies that don’t sell your timeshares and are usually not even licensed real estate brokers.
The result is that these sellers end up paying exorbitant no-sell fees, instead of an unbiased commission, to sell it!
PLEASE don’t be fooled by the many companies that are ready, willing and able to convincingly say how they will sell your timeshares at a great price as soon as you (or the company you associate with) pay any kind of Upfront fee for an appraisal or payment – no matter the logical reason for the initial sound fee.
On a positive note, before wine on the internet, there was virtually no way to market a timeshare resale at any price, but the good news is that there is now a strong market if the price is in line with what other providers are offering. . are willing to sell identical units.
It is our standard company policy, at no cost, sellers provide an honest estimate of market value.
