How To Walk Away From A Bluegreen Timeshare
Bluegreen timeshare resales can be a great way to make some cash, but there are also risks. Learn how to avoid some of the most frequent pitfalls and how to walk away from a Bluegreen timeshare. One of the biggest pitfalls is not understanding the cold hard truth that you will lose money in resale transactions. The average depreciation over 2 years is 60% at Bluegreen resorts, which means that you need to sell for at least $500 more than what you paid for it in order for it not to be a loss.
Tips on how to walk away from a Bluegreen timeshare
1. Know the exact cash amount, after all fees, that you will walk away with.
This takes some homework as it depends on the Bluegreen sales contract. Some contracts state that “cash plus fees” is a minimum valuation to make the sale, while others will only tell you cash value. Either way, it is important to know how much you are going to walk away with so that you will not be tempted to make a lower bid.
2. Know when and how you can sell your timeshare in case you lose money
Typically, the seller has 60 days after signing for the sale to make an offer on an opposite timeshare at a different resort without having to get permission from the Bluegreen corporation if he/she is not within 5 miles of one of their resorts (known as “free riding”). It can be a good idea to verify the exact rules before you make a bid. If you have purchased your timeshare, then there are some other options to sell it even if you have overpaid:
3. Look for a “walk away” insurance policy
If you have the cash and are not willing to wait 60 days, then there is another option: go to your Bluegreen timeshare sales office and make an offer on their “walk away” insurance policy. The offer will include some money…but the actual value of what you get will be lower than what a comparable resale would yield. For example, if you are offered $100,000 for a Bluegreen timeshare with a depreciated value of $150,000 plus fees and you are still looking at $250,000 in resale proceeds…then you know that you will only get $100,000 back.
4. Consider selling through a resale broker
It is a good idea to use a resale broker if your timeshare is worth less than $500. The disadvantage of using a resale broker (in comparison to the seller himself) is that you cannot offer what you want and you have no part in the negotiations (the seller has all control over the deal). You might have to wait longer than 60 days before they can close the deal, but it could be worth it depending on value of the timeshare and location of your resort.
5. Consider using a “no cost” resale program
There are timeshare resale programs that do not involve any fees…but you need to be prepared to lose money because they too are based on a depreciated value. Also, be prepared for their marketing costs and fees…and you can expect some of their money to come from the seller as well. This type of program might be good for sellers who have no objections to paying a small fee in order to make a sale.
6. Consider selling through a resort buyback program.
Resort buyback programs can work out well for both the seller and the buyer, but they represent a small percentage of Bluegreen sales…and you cannot predict exactly how much you will be offered on their basis. Some of them even require that you meet certain criteria, like not refinancing your loan before the sale closes and there are usually some upfront fees associated with them as well (although they are usually lower than what you would pay through alternative outlets). Also, make sure that your timing is right with these programs…because you might have to wait for a buyer for a long time.
7. Make a careful evaluation of your timeshare before you buy it
It is important to do your homework before buying a Bluegreen timeshare resale in order to avoid the pitfalls of paying too much and walking away with less than you expected. Look at the exact amount of money you will receive, verify if there are any closing fees involved and look up the history of sales in that resort as well as some projected values (which will change over time).
8. Make sure that you have the right type of timeshare if you want to sell it
There are different types of Bluegreen timeshares, and all of them have a depreciated value that is greater than $500. The ones with the highest depreciated values (over $1,000) are usually sold through resort buybacks, while the ones with lower depreciations (between $100 -$499) are sold through resale brokers and no cost resale programs.
9. Understand that you are offering a depreciated value
When you sell your timeshare, be prepared for the fact that you will only get a depreciated value…and that the buyer will pay it. Also, be prepared to take a lower profit on what you paid for the timeshare in comparison to resale values of comparable resorts. It is not uncommon for sellers to lose money when they sell their Bluegreen timeshares, but there are ways to minimize your losses. Know how much money you will walk away with after all fees and research estimated inflation rates on Bluegreen resorts in order to get a good price.
10. Do not fall for the Bluegreen lies
You might be sold on a timeshare by a resort salesperson and might be given a hoopla about the value of your timeshare, but that person IS NOT A REAL ESTATE AGENT. Do not fall for their lies or get excited about getting $500,000 for your resale because it is highly unlikely that you will ever see this money. The same thing goes with the “60 day” rule…it may or may not apply to you depending on how you purchased your Bluegreen timeshare resale. Read through their contracts carefully to determine if you need to make an offer on an opposite timeshare before making any offers or if they will sell yours without permission.