Broker fees

[Watford]

Is there a general rule of thumb for how much a broker wants to sell a timeshare

 

[TUGBrian]

going to depend on the value of the timeshare.

 

[DeniseM]

You have to be very careful with this, because many of the folks who will present themselves to you as "brokers" are actually just scammers. They charge a high upfront fee, and then never sell your timeshare - it is an extremely common scam.

Anyone that you received a cold call from, is probably a scammer.

Reputable, well-known brokers, usually start their fees at about $1,000 minimum. But for a more expensive timeshare, they charge a percentage - like a real estate agent does.

A reputable broker deducts all the fees out of the proceeds of the sale.

Anyone that wants to charge you an upfront fee is probably a scammer.

There may be small local companies in the resort area, that may charge you less, but again - all fees should come out of the proceeds.

It is possible to sell your timeshare yourself, but in all honesty, unless you own one of the top resorts (Marriott, Westin, Hyatt, Hilton) etc., your timeshare probably has no resale value. Most timeshares sell for 0-10% of the original price, on the resale market, and there are some that you can't even give away.

If you find yourself in the position of owning a timeshare with no resale value, it may be possible to give your timeshare away, if it is completely paid off. MORE INFO.: http://www.tugbbs.com/forums/showthread.php?t=132509

***I see that you are actually looking to buy a timeshare - the broker's fee will be paid by the seller - not by you. However, it does add a significant chunk to the price, which is why some people opt not to go through a broker.

 

[Watford]

Thanks Denise for your helpful answer - with that level of fees it's no wonder people list their for sale items in the TUG marketplace

 

[Saintsfanfl]

Even though many legitimate PCC's may operationally act as a "broker", a truly "legitimate" broker will always take 100% of their fee out of the proceeds of the sale. How many licensed real estate brokers charge up front fees to list a house?

These types of completely legitimate broker's are out there but they can't afford to list any but the most valuable timeshares. It's strange though that they don't seem to be more expensive than the up front types that are able to collect fees on timeshares that can't realistically be "sold".

 

[ronparise]

There is sometimes a problem taking the fee out of the proceeds and that is the sale may not generate enough proceeds. In a case like that I would ask my client to deposit my fee as well as the closing company's fee past due maintenance fees, transfer fees, cash incentives etc (ie the cash needed to close) with an escrow company when they accept any offer I might present

 

[presley]

Is there a general rule of thumb for how much a broker wants to sell a timeshare

I have found that most will take $1500. commission unless it sells for under $3K. If it sells under 3K, they usually take $1000. As mentioned above, that comes out of the sale during closing and you wouldn't need to pay anything directly. Read any contract thoroughly before you sign anything. Also, note, most resellers will have you sign a 6 or 12 month listing agreement.