Successful Resales & Rental Feedback Wanted

In early 2009, I successfully sold my 3 Bedroom Timeshare at Orange Lake River Island on Redweek. We took quite a beating on the price, but we didn't give it away either. I sprung for an analysis, and was told that in the current market, the best I could expect to get was $9,000, so when I got an offer for that amount, I accepted it. I was a bit dismayed, when, just as the sale was about to go into escrow, I got another offer for the full asking price from someone who was visiting the resort at the time ! I e-mailed back, and explained the situation to him and said that if, by any chance the sale didn't go through I would let him know, but of course, it did. I was pleased to discover, though, that the loss can be declared on your income tax as a Capital Loss. Just be certain that all of your paperwork is in order. I haven't been quite as successful at renting, but last year when we were out of town for 6 weeks with limited access to a computer, I discovered when we got home that several offers had come in at the last minute. By then, the week had passed. (we own a fixed week in Ft Lauderdale). Lesson learned...keep checking your listing, even when you are not home!!! If it costs a little to use an internet cafe, do it.

That last post is highly suspect. No one has been paying that much money for a timeshare like yours for quite a while, especially not in 2009, and since 2BR units are listed for $1k-$4k it's unlikely anyone would offer $9k for a 3BR, let some twice.

But what makes that post especially dubious is your assurance that the sale of your timeshare can be deducted as a loss for taxes. The only capital loss which can be deducted is an investment loss. Unless you've been reporting rental income and net profit for a few years on your tax return, you can't deduct the capital loss.

peterp151 wrote:

That last post is highly suspect. No one has been paying that much money for a timeshare like yours for quite a while, especially not in 2009, and since 2BR units are listed for $1k-$4k it's unlikely anyone would offer $9k for a 3BR.

With due respect, It's certainly plausible. While you do make (accurate) reference to 2BR pricing, this was a 3BR timeshare, so you are comparing apples to oranges. 3BR timeshares are truly a rarity in the timeshare world. A family with money to spend that wants / needs 3BR might very well pay $9k in the resale market for a guaranteed prime week each year when their little fluffies are all out of school. I certainly wouldn't pay even a small fraction of that amount myself, but I admittedly have no use for the Orlando area anyhow. Nonetheless, I don't find it entirely outside the realm of possibility that the "right" 3BR week could well have been a perfect fit for a young, affluent family.

Tax matters....well, I'll stay away from that --- not my bailiwick.

Hey, Good for the seller, deal for the buyer. I know people that still go see MICKEY every 2 years. Orlando is nice, personally we prefer closer to the Space Coast. Points are the key, a 3 bedroom with points would be great for trading. TJ

I thought I left a reply to this post yesterday, but I think I somehow put it in the wrong place. I know that it is unusual to get as much as $9000 for a timeshare in this economy but as I said, it was a 3 bedroom/3bath at Orange Lake River Island. This resort is just down the road from Disney and it was , I believe, the first timeshare resort in Orlando, started by Kemmons Wilson, the founder of Holiday Inn. Over the years the resort has grown tremendously, and consists of three Villages, West, North, and East, of which River Island is the newest and most luxurious section. It adjoins the new water park, and one of the resort's 3 golf courses. The resort has recently undergone major renovations in other areas as well, including a new pool complex in West Village, and remodeling of most of the units. Our buyers knew this, as they were regular vacationers at OL, visiting with their 3 children as well as grandparents. Also, I don't think I mentioned that they were from Canada, where the economy was not affected as much as it was here. The week I sold was week 10, which is in mid March. Anyone who has visited Orlando in March knows that the area is swarming with Canadians at that time, particularly people from Ontario. I believe the schools must be out a couple of weeks or more at that time. As to the tax issue, I didn't think we could declare the loss either, but our tax preparer checked with her supervisor, and he assured her that we could. We haven't been contacted by the IRS about this yet, but I suppose it's possible that we could in the future. I'm sorry if I misled anyone. I was merely reporting what I had been told. I guess I should have said to check with your tax advisor first.

Hi. My name is Frank and I'm new to selling a timeshare and am leery of the process too. I'm reading a lot about it and asked Marriott who they could refer me to. The gave me this site and one other. My weeks aren't listed yet but I will be listing them soon.

Congrats on your sale. We also have a T/S at Orangelake. Bi-annual We enjoy the sunshine and Mickey, or trade the points for the coast. TJ

Congrat on your sale maryannek8. I also have a 3Br Platinum in Grande Vista (with 2011 President's week booked!) that I am thinking about selling. They currently sell around $11'000 according to latest selling prices. As I am not desperate to sell, I will consider converting unused weeks to MVC points for week-ends and other shortstays in other places.

If someone can advice me about the best way to advertise/sell, let me know (I am currently thinking about listing on Redweek and maybe putting it on Ebay with a high reserve/asking price).

@maryanne, ok provide the date your sale was recorded and last name, I'll look up the sale price listed on your deed.

As for tax loss, google "Irs deduct loss on sale of real property" and the very first link says it all: http://www.google.com/m/url?client=ms-android-verizon&ei=Lkv-TOiDK4SEqQO5x6IK&q=http://www.irs.gov/publications/p17/ch14.html&source=android-home&ved=0CBIQFjAA&usg=AFQjCNHAmCxFQB__bTRfq_k9pJCs3708HA

"Personal Use Property

Property held for personal use only, rather than for investment, is a capital asset, and you must report a gain from its sale as a capital gain. However, you cannot deduct a loss from selling personal use property." This rule applies to real property such as your home, vacation home, timeshare.

IRS publication 544 clarifies the deductibility of property, specifically the only way is if you can clearly and specifically demonstrate the property was used to generate taxable income, and as I see it that means you would have had to report the rental use of your unit on your tax return in prior years. Especially since vacation homes have a two week rental income exclusion from taxes, it is unlikely any owner reports taxable income on their tax returns for timeshare rentals. Even if they did, it is my opinion the IRS might still determine your capital loss is not deductible specifically because your reported income is not considered investment income. Only an owner similar to me, who owns dozens or hundreds of units with the specific goal to profit from renting units or buying / selling and reports such on their tax return, is likely to be able to deduct capital losses.

And if you really did deduct the loss, the only reason the IRS hasn't notified you your 2009 entry is invalid is because they haven't noticed it yet. My best guess is roughly 2012 / 2013 when they do the three year audits is when they will most likely notice.

Hi Ken, I'm reaching out to you because you are one of the very few I've read who have actually sold a timeshare recently--and two, at that! I've got four to sell, all desirable. My problem is time and some know-how. Would luv to talk with you. Greatly appreciate your emailing me at: margaretah2022@gmail.com.

peterp151: I don't feel comfortable posting the information you asked for on a public forum, but if you can supply me with a fax#, I can fax it to you. Thanks: maryannek8.

That is a challenge where members are not able to PM each other, and i understand your concern. But since I was once accused of making false statements about what I sold and the only way to prove to all people in the thread I did what I claimed was to meet the challenge presented to me by posting my last name, name of resort, and date of recording, I don't know of a better way for all parties to know for certain than providing the public info about what was recorded. I appreciate your idea about the fax number, but there's to much risk of fax spam, and no one else would be able to see for themselves if the info was accurate.

I'll just hold my opinion that anyone who says you can deduct the loss on a timeshare which they sold for $9,000 in a market where I perceive the resale value to be closer to $1-$6k is not making a statement I can believe, especially when the IRS rules clearly demonstrate it is unlikely the vast majority of timeshare owners can legally deduct a timeshare loss on their returns.

they say on here, "red week" not to pay up front,,, why does red week charge a fee upfront??? they are the same as all the other scams!!!! Its says on redweeks website and message board "its against the law for any company to charge an upfront fee to list, sell or rent a timeshare. as far as i can see redweek is a sham!!!!! i wouldnt pay red week a DIME. Dont be fooled by red week.com they are crooks!!!!!

I dont know anyone who has sold a timeshare with red week.com

scottr295 wrote:

they say on here, "red week" not to pay up front,,, why does red week charge a fee upfront??? they are the same as all the other scams!!!! Its says on redweeks website and message board "its against the law for any company to charge an upfront fee to list, sell or rent a timeshare. as far as i can see redweek is a sham!!!!! i wouldnt pay red week a DIME. Dont be fooled by red week.com they are crooks!!!!!

No one is forcing you to use RedWeek. Besides, the rule of thumb is to never pay a LARGE upfront fee. RedWeek's prices are in line with what other reputable advertisers charge.

Also, RedWeek never cold calls anyone saying it has buyers waiting in the wings ready to plop down a zillion dollars for a dog week. Since you've signed up to do postings on these forums, you can access all the listings on RedWeek and see what prices properties have sold or rented for.

If you want to advertise your property for free, try bidshares.com.

scottr295 wrote:

I dont know anyone who has sold a timeshare with red week.com

Scott--You should really find something else to occupy your time since you know nothing about Redweek or Timesharing.

For many years I have used the site to "advertise" my available weeks to those that are shopping for weeks. I have sold two timeshares, bought one and rented four different ones out at least a dozen times. You have to know the properties and their values. This site works and the people who use it are doing so know the very minimal costs. In paying the fee I stay in control of the timeshare at all times and I haven't signed it over to Redweek like you might if you paid high upfront fees for a listing company or real estate broker. I set the price and I can edit the ad at any time and I am in direct contact with the buyer. Some of my listings have received 10-12 hits before I remove it after the sale or having rented it. I don't pay any additional fees unless I require a closing company or transfer fees.

This site is obviously not something you need or want so you should take your business elsewhere--especially since you said you wouldn't spend a dime anyway. Not why you're wasting your time with it.

peterp151 wrote:

That is a challenge where members are not able to PM each other, and i understand your concern. But since I was once accused of making false statements about what I sold and the only way to prove to all people in the thread I did what I claimed was to meet the challenge presented to me by posting my last name, name of resort, and date of recording, I don't know of a better way for all parties to know for certain than providing the public info about what was recorded. I appreciate your idea about the fax number, but there's to much risk of fax spam, and no one else would be able to see for themselves if the info was accurate.

I'll just hold my opinion that anyone who says you can deduct the loss on a timeshare which they sold for $9,000 in a market where I perceive the resale value to be closer to $1-$6k is not making a statement I can believe, especially when the IRS rules clearly demonstrate it is unlikely the vast majority of timeshare owners can legally deduct a timeshare loss on their returns.

OK Peter, here's the info you asked for. My last name is Kalbfus (honest, this is not a fake name) The closing date was 3/31/2009 and it was handled by First American Title Insurance Company.

As to the tax issue, I guess I'll have to contact my tax preparer and get this issue straightened out. As I said before, I questioned it at the time, but was assured that this was a legitimate deduction.

scottr295 wrote:

they say on here, "red week" not to pay up front,,, why does red week charge a fee upfront??? they are the same as all the other scams!!!! Its says on redweeks website and message board "its against the law for any company to charge an upfront fee to list, sell or rent a timeshare. As far as i can see redweek is a sham!!!!! i wouldnt pay red week a DIME. Dont be fooled by red week.com they are crooks!!!!!

Redweek is a timeshare ad site ..... nothing more, nothing less .... they do not charge a large upfront fee in the hundreds/thousands of dollars for their clients to place ads here as the upfront fee resale scammers do.

Redweek is the number one timeshare ad site on the internet and it gets hundreds of hits a day from people wanting to buy, sell or rent.

I sold nine timeshares in the past, most of them from my Redweek ads.

The fee to become a member/place an ad is nominal/fair and it keeps tirekickers and spammers away.

I had great luck last year. I foundthe perfect rental at Beach Quarters in Va. Beach for August, and I put our week 27 at Beach Quarters on for rent. I got alot of inquiries. The whole transaction went great. I had my tenants sign a rental agreement and send me 1/2 of the amount asked with a faxed signed copy of the agreement. Once I got this I notified Beach Quarters and they sent a confirmation to them. I then received the rest of the money and faxed her the paper with my signature. I did the same for her week that I rented ...I love the Beach Quarters ...it is one of the best in Virginia..... I don't have a problem renting it since it is a prime week.

I have rented successfully at a reasonable price and purchased a resale through Redweek. The transactions both went well and I have easy communications with both the parties that were posting their weeks.

I have not had luck renting or selling my properties but it probably was the price, property or just the timing involved. It was not a reflection on Redweek at all.