Disclosure: Buyers and Seller are usually represented by the same real estate agent in a Maui Lea timeshare purchase and re-sale. Both parties must agree to a dual agency agreement prior to negotiating pricing and terms.
What To Expect As The Seller:
How to list your timeshare for resale.
The only paperwork required for listing your unit and interval for sale is an easy to complete one-page listing agreement. There is no fee to place your unit for resale and a copy of the listing agreement will be sent to you, along with a letter, explaining the costs involved.
How to choose the listing price for your timeshare.
As a guide to valuing your timeshare, we recommend checking both current 'resale' & 'sold' lists to make comparisons with your own. This will give you the range owners are asking, as well as data on what have actually been sold. Whilst we are happy to guide you, educating yourself on the current market is the ideal way to arrive at a competitive and realistic asking price for your timeshare.
The following is a guide to the costs you can expect when selling your timeshare.
- Commission: 25% of sale price or $2,500 which ever is greater.
- Closing costs: Closing costs are estimated at $1,350 per week and normally split evenly between the buyer and seller, your half being approximately $675.
- Transfer Fee. $175 per week or $150 per week for multiple intervals, which is normally split evenly between the buyer and seller.
- Maintenance fees; Proration of fees may occur depending on your sale date and interval owned.
- 7.25% State Non-Resident Tax; Proof is required by the State of Hawaii that you are not making a profit on your sale. Acceptable documents for this purpose are; your original buyers statement. Without proof of a loss you may still apply for a refund through escrow, but this may delay your closing date or the 7.25% may be withheld and be sent to you once the State has approved your application.
- Non U.S. Citizen 15% Federal Tax
The listing contract is for one year from the date you sign.
Price change, cancellation and expiration.
You may alter your listing price or cancel your contract at any time by placing your request in writing to Lea Properties, Ltd. In order to keep your listing active a new listing contract (mailed to you one month prior to it's expiration) must be completed and returned to Lea Properties, Ltd. prior to its expiration. Your listing will expire one year from the date it was signed and be removed from the sales list.
Marketing and promotion.
- The Homeowner Services desk at Maui Hill has current resale information in handout form.
- A monthly e-mail is sent to all clients who have shown past interest in purchasing at Maui Hill.
- Each unit has a card in it stating what weeks are for sale.
- The owners of the week(s) before and after yours are contacted to see if they have interest in acquiring adjacent weeks.
- The resale website.
All offers will be presented in writing giving you the opportunity to accept, counter or decline. Your agent will help walk you through each option.
Once an offer has been accepted.
Upon acceptance of price and terms, your agent will collect opening funds from the buyer and move forward with a purchase contract for signatures from all parties. Escrow will be opened with First American Vacation Ownership Title and Escrow Service, Inc. and you will receive a copy of the signed purchase contract for your records. Your agent will periodically contact you, the Escrow Office, the buyers, to ensure progress. A 40-60 day escrow is normal in Hawaii.
Upon closing, Escrow will mail you your proceeds check and closing packet.
A: No. Nearly all the steps can be done online or via fax. Only the escrow documents are required to be returned as originals and as such, need to be mailed.
Q: Does it cost me money to list my timeshare for resale?
A: No, there is no listing fee. Agents are paid via commission which is charged and paid only upon closing, thus creating a high incentive to sell your time.
Q: How do I know what my timeshare is worth?
A: Value varies on the size, date, location and demand of your unit and interval. A good guide is to check what has recently sold, which will help set your expectations to today's market prices.
Q: Once I've listed my timeshare for resale, do I have to keep paying my maintenance fees?
A: Yes! It is important to keep your unit and interval in good financial standing to avoid possible delinquency fees and attorneys' fees.
Q: Who pays the closing costs?
A: Normally closing costs are split evenly between the buyer and seller. However, each sale is different and the terms that you and the buyer agree to will ultimately determine the answer to this question.
Q: I have weeks banked with an exchange company, what happens to those credits when I sell?
A: The choice is yours, you may transfer past credits to the new buyer or keep them for yourself.
Q: What is dual agency?
A: This means your agent is representing both the buyer and the seller is your transaction.
Q: How long will it take to sell my timeshare?
A: Unfortunately, there is no specific answer for this question. Your listing price and the historical demand for your particular unit and interval will be the biggest determining factors. We recommend talking to an agent directly for more information.
Q: How can I sell my timeshare without paying Lea Properties, Ltd a commission?
A: On the Maui Hill Resort's website there is a 'for sale by owner' section. For $25 you may post your listing and sell it privately. We also recommend you talk to friends and family to see if they wish to buy your time.