We have curated some of the most frequently asked questions about buying, selling, and renting a timeshare on the resale market.
Customers can visit http://www.myfloridalicense.com/dbpr/, and verify the current status of our company with the state of Florida and our individual real estate licenses.
We have over 20 years of timeshare experience with the biggest names in the timeshare industry. But most important, the savings are very significant when someone purchases in the resale market. Depending on the timeshare you purchase, customers could save up to 70 percent compared with the retail market.
Developers will always discourage a customer from purchasing in the resale market because it is lost revenue for their sales divisions. To prevent a customer from buying in the resale, most developers have removed their loyalty program when he/she purchases in the resale market. A few examples:
Assuming that buyer and seller exercise due diligence by returning documents in a timely manner, an average closing takes 45 to 60 days.
Part of the closing process, is to verify directly with the developers what the owner actually owns. We submit a form to them, they are responsible to confirm everything we need to know about the selling property such as the size of the villa, the season, the view, annual usage, availability for next year, status with their maintenance fees, etc.
For a purchaser, generally, apart from the purchase price, they are also responsible for closing costs. For an average timeshare, closing costs are approximately $400 to $600, but they do vary based on the property you purchase.
If the purchaser wants occupancy the year they are purchasing the timeshare, the common courtesy is to reimburse the maintenance fees to the seller.
The seller’s responsibility is any late fees, penalty charges or mortgage loan payments owed to the developer, which generally those are deducted at closing off the proceeds.
As a buyer, a customer can present any offer. Our role, is to present it to the seller, which he/she will be able to accept it, decline it without a counter offer, or counter offer it.
All large developers have the right of first refusal. That means that once an offer has been accepted by the seller, the closing company must present the offer to the developer. Most developers have anywhere between two weeks to four weeks to decide whether to match the offer or wave it. If they match the offer, the buyer is removed from the transaction and the developer becomes the buyer. All terms and conditions of the contract remain the same. If they wave it, the transaction continues as normal.
Most developers exercise the ROFR. There aren’t exact guidelines to determine when they are going to intercept transactions. It is driven by the market and their shortage of inventory, but most important, if the accepted offer by the seller is too low compared to the rest of the resale market, there are very high probabilities they will exercise the ROFR. When the ROFR is exercised, the buyer does not lose the deposit. He/she can elect to keep it in escrow and instruct us to find another one or simply get reimbursed.
The quick answer is no. Once the developer matches the buyer’s offer, it is final, the buyer is removed immediately from the transaction.
Financing is available to those with good credit. We outsource our financing to specific lending companies. For more information about financing please click or call us at (407) 347-6515. You can also email our front desk at admin@magicalrealty.com
With most timeshares, you have two years to use your vacation. If by any chance, at the second year you are not able to vacation, you can deposit your week with RCI or Interval International and have another two years before you use it.
Yes, you can rent your week. We can offer you our services to find a renter for you. Our commission is 20% of the rental proceeds or $500, whichever one is greater.
Yes. Vacationing every year, or even every other year, and by comparing apples to apples, if a customer was to rent a week in a two bedroom villa in a Marriott, Hyatt, Hilton or Disney resort, typically the break-even point would occur within four to six vacations. After the customer breaks even, the only fee he/she is responsible for, is the maintenance fee, which is typically a fraction of the rental cost to cover a week of vacation in a two bedroom villa in a luxury resort.
Deeded means a customer owns the property it out right, in other words, forever. You can sell it, rent it or even will it. RTU or Right to Use properties, have a determined number of years of usage. Customers can sell it, rent it or will it up until the expiration date.
The attractive component of owning a timeshare is that a customer can exchange with thousands of other resorts around the globe. When a customer purchases a timeshare, he/she will be invited to join RCI (Resorts Condominium International) or II (Interval International). These two companies have partnered with thousands of resorts for customers to trade with each other. These companies are there to assist you with the trading. The trades can be handled over phone or you can do it yourself on the internet through their websites.
When a customer purchases a timeshares, he/she is responsible for the operational cost of the resort. The same as owning a home, there are electric bills, property taxes, maintenance of the property, refurbishment of the resort, insurance, etc. The amount of maintenance a customer pays is based on the resort they purchase.
Cost of living, inflation, property taxes will affect the maintenance fees. Expect a fluctuation of 2 to 4 percent per year.
The biggest expense for developers to sell their product to customers like you, is marketing. For every dollar a customer pays to buy a timeshare directly through a developer, 50 cents or more goes straight to marketing costs. In the resale market, we bypass the marketing costs altogether and pass on the savings to you.
