Timeshare Articles

Information About Timeshare and Vacation Ownership Programs

by mauimommy

Timeshare has appeared for over 4 decades. In the recent 2 decades, forms of vacation ownership with programs of credits and points have been available more and more. In general, about millions of owners of their vacation are out there, with lots of developers and purchasers interested in getting those vacation ownerships as well as programs trying their best to find out where to buy them.

The internet gets bigger every day and so the options for the buyers keeps getting larger. The largest timeshare developers in the world have realized that it’s important to have features of their timeshare programs which are exclusively sold by the developer and not available on the re-sale market. Offering developer-purchased-only incentives helps the developers to maintain their market and to continue to sell against the internet opportunities.

If the consumer is trying to buy more than one week of vacationing or would consider purchasing multiple programs, they might want to be sure to get some of their product directly from the developers so they have “everything” they can get with the purchase and consider adding more products or services through bargain hunting on the internet or however else they will add to their purchase.

We all like good deals and buyers of products and services online, as compared to the traditional in-person purchases should seek professional assistance and guidance to ensure that they have all of the documents they need and understanding the status of what they are buying.

It would help to verify what they are getting and how to use what they are purchasing.

If there are classes or books they need to have to help them use what they’ve bought, they should know how to get those items. If there are funds that are due or money owed from the previous owner, they obviously want all the details and to enter into their agreement based on the facts. If you don’t have the knowledge or skills to determine everything you might need to know before purchasing then maybe consulting a lawyer, title company, or accounting professional will help.

Find out what the developer is offering that is unique to the buyers who are purchasing directly from the owner and once you’ve selected your timeshare I wish you many wonderful vacations. Determine if there is a difference in the features of your program that will stay with your family forever from those that will be passed on to any future buyers if you decide to sell in the future.

More Westin Timeshare Articles

Timeshare Complaints: The Top Five.

by Krystal International Vacation Club

Article by Sjones

The majority of timeshare scam companies in Mexico sell timeshare contracts based on the same fraudulent premises. The following is a list of the 5 most common timeshare complaints. Please share this information with others to prevent your friends and family from falling victim to timeshare scam in Mexico.

Timeshare Complaint #1 – Guaranteed Rental Income

The most common timeshare complaint is the promise of guaranteed rental income for timeshare weeks. Many clients are enticed into buying a timeshare, or buying a larger package than they need or can afford, because the salesperson presents the timeshare as a financial investment. The timeshare salespeople claim that the client’s timeshare weeks will be deposited into their marketing program and rented out in house. In reality, after the client has purchased and returned home, they are referred to an outside rental agency. The rental agency will charge an upfront fee to list the property. The timeshare weeks are typically never rented, and when the client tries to contact the rental agency or the timeshare resort their calls and emails are ignored.

Timeshare Complaint # 2 – Guaranteed Resale of Previously Owned Timeshare

Most vacationers who already have a timeshare membership are not interested in purchasing another membership due to the high maintenance fees involved in timeshare ownership. The timeshare salespeople are very aware of this, and as a sales tactic, they promise to resell, trade in, or do an equity exchange for the previously owned timeshare in order to subsidize the purchase of a new timeshare contract. Some organizations will create an equity exchange agreement. The client believes that the resort will take over their old timeshare, which means that they will no longer be responsible for paying the maintenance fees. Other resort refer clients to an outside resale agent. The resale agents draft up a contract stating that the sale of the other property will be completed in 90 – 120 days. Within this time period, the timeshare resort tries to offer incentives, such as discounts, if the client pays for the timeshare in full. This is because they are aware that the previously owned timeshare will not sell, but they still want to ensure that the client remits their full payment. The promised of a guaranteed resale or trade in of an old timeshare is one of the most financially detrimental timeshare complaints because the client is left buying a new membership, without the profit from the old membership, and has to pay maintenance fees on both properties.

Timeshare Complaint # 3 – False Annuity Programs

Some timeshare salespeople claim that the resort has relationships with major banks that will offer an annuity program. The timeshare salesperson claims that if the purchaser pays an additional 5% of the timeshare purchase upfront to an outside organization, the purchaser will get the benefit of the use of the timeshare, and receive the entire purchase price of the timeshare back at the end of the contract from the annuity program. This is another ploy to ask for upfront fees for a service that does not exist.

Timeshare Complaint # 4 – False claims that Maintenance Fees will not increase

Another common timeshare complaint is the verbal promise that the maintenance fees are fixed and will not increase for the life of the contract, essentially, locking in the cost of the vacation. Unfortunately, this claim is not true, and the timeshare owners find themselves responsible for maintenance fees that increase far more rapidly than the rate of inflation. The increasing costs of maintenance fees, coupled with the affordable online travel deals available today, negates any benefit of owning a timeshare. In fact, taking a vacation to a timeshare resort is often more expensive, when you factor in the flights, maintenance fees, food etc. than booking an all-inclusive deal to the same resort online.

Timeshare Complaint # 5 – Special Assessments

Increasing maintenance fees are not the only timeshare complaint that owners experience. Some timeshare resorts are also implementing special assessments every 5 years or so, which in effect, double the maintenance fee for that year. The timeshare resorts claim to be using the special assessment for special projects or to cover costs incurred by unexpected circumstances; however, most of the resorts that are imposing special assessments do not have valid reasons to do so.

Timeshare Resales = Timeshare Fraud

Article by Mexican Timeshare Solutions

“A few months ago I went to a sales presentation and the sales representative asked if I was interested to sell my timeshare for about twice what I paid for it. The offer was only available for that day and we agreed to buy the timeshare. We left a down payment of U.S. $ 4,000 and the remainder was to be financed over 3 years with no penalty for prepayment. We told the salesperson that we needed the timeshare to sell in less than 6 months and because we would be using that money to pay for the new timeshare.

Two months ago I should have received a check for $ 25,000 U.S.; however, I have received nothing in my email. The seller does not answer my calls and the company which I paid $ 599 U.S. for selling my property has a disconnected phone number and their website no longer exists. What can I do?”

These are very common complaints that we receive from clients. Timeshare vendors are well aware that it is unlikely that a customer who already owns a timeshare would want to purchase a second property. Many sellers are very convincing and promise potential clients hefty financial returns for the sale of their old timeshare.

But, what is the problem? The resale value of timeshares is much less than what a customer would expect. In these times of economic downturn where people buy only what they really need, it is not uncommon to find timeshares purchased in Mexico for $ 30,000 for sale on websites such as EBAY or REDWEEK for only $ 500 U.S..

Why is that? Consumers have been educated and realize that it is cheaper to buy a vacation package on the internet than to have to pay thousands of dollars upfront in addition to annual maintenance fees. Ultimately, timeshares do not have the expected value for consumers.

Any salesperson that has at least a couple of months working in the industry knows that timeshares have an economic value much lower than the customer desires. This is why they engage in deception by claiming to potential customers that if they buy a new timeshare, they are committed to help selling their current timeshare. Salespeople will even go to the extent of saying that they already have buyers for their timeshare. This is clear deception and fraud, and is a criminal act in Mexico.

This fraudulent sales practice is commonly used by sales managers as well as timeshare developers; however, they are very clever and very well protected. A common way to offer the resale of existing timeshares is to hire other companies to take charge of the sale or resale (paid by customers).

Timeshare contracts protect the interests of the seller and they wash their hands by having the clients sign disclosure statements when it was the developer

Guide- Orlando Florida Timeshares For Sale By Owner And Resales

The difference between a timeshare and a normal hotel room can be quite significant. When I say normal hotel room I mean the typical room where everything is in one room plus a bathroom.

The closest a hotel room comes to a timeshare is if the hotel room is a one bedroom suite, or if the timeshare is a studio. Still, there are some major differences. The studio timeshare would have a full kitchen and some even have laundry rooms inside the timeshare. Most of the one bedroom hotel rooms I have stayed in did not have a kitchen and definitely did not have any way to do laundry.

Timeshares come in studios, one, two, and three bedrooms. Most often timeshares are two bedrooms, two bathrooms, with the ability to sleep up to eight people comfortably. I am sure we have all had an experience where we had to fit more people in a hotel room than was intended. This was definitely not comfortable and really cramped; not to mention trying to get ready to go somewhere or just find the bathroom available.

Think of it this way, the typical two bedroom timeshare is like staying in a two bedroom apartment or condo, with some places like Marriott including everything you could need; cups, dishes, plates, pots, pans, etc. Marriott even includes dishwashing detergent for the dishwasher!

With the economy the way it is timeshares are readily available on the resale market and for sale by owner. Orlando, Florida is the timeshare capital, which is no surprise given the number of theme parks, attractions, beaches, and golf courses that are in every direction.

If you were to rent a two bedroom hotel room (which is a timeshare..or villa) at a Marriott for example it would cost you somewhere around $ 225 to $ 250 per night, which is between $ 1,575 and $ 1750 for seven nights. Right now with people losing their jobs and needing money it is easy to find timeshares for sale, either by owner or through a resales company, for much less than they should be going for; and much less than the resort charges for a timeshare.
I know recently Marriott had timeshares for sale, sticking to the two bedroom, two bathroom, for normal price $ 17,900 and had the on sale for just around $ 15,000. Just a few months ago I saw two of the same timeshare Marriott was selling for about $ 15,000 on a resales website, which is actually for sale by owner, and they sold for $ 7,000 and $ 9,000.

It is possible to get the same unit for even lower and even with some travel time included. Even though there are maintenance fees, they are much lower than the $ 1,575 to $ 1,750 it would cost to rent for seven days. Plus, timeshares at places like Marriott can also have a feature called lockoff, which allows you to split the timeshare up and get two weeks vacation instead of one!

Find out more about this and everything else you should know and find out before buying a timeshare, as well as why Orlando, Florida is the best place to buy a timeshare, by downloading your FREE Orlando, Florida Timeshare Guide instantly at www.OrlandoFloridaTimeshareForSale.com.

You can also receive a DISC personality profile, which is usually $ 100, for FREEso go now and get your guide and DISC profile!

Related Timeshares For Sale By Owner Articles

Better Than a Timeshare?

Do you love to travel & dream of your next destination?

If you are like us, you are trying to manage a home, work, family & finances. Trying to juggle these life aspects and then to co-ordinate, justify and afford a vacation (or even a short getaway) is becoming an increasingly defeating challenge.

Who doesn’t dream of someday taking an expensive, fancy vacation? The problem is, money still doesn’t grow on trees and last time I checked, neither do luxury vacations. Oh, and how does one leave ‘work’ or like us, a ‘home-based business’ to vacation? Wouldn’t the perfect scenario include a vacation AND an income source, all at the very same time? So okay, the perfect ‘scenario’ was obvious – we NEEDED to find a business that would allow us to both travel AND allow us to work from our vacation destinations! The perfect ‘solution’ however, was NOT so obvious! Where would we find such a ‘dreamy’ opportunity?

We managed to squeeze in the odd weekend away in nearby towns, but even they became rare.

We simply could not afford to stay in a luxury room and to be honest, we had spent so long making our home our sanctuary, it became absurd for us to travel & spend money on related travel costs, only to be seriously disappointed by our accommodations!

Our kids are now fairly independent, so we knew that getting away would not be an issue. Our home-based business is very established and allows us to sneak away for a week or two, several times a year. It was the financial aspect that continued to ‘block the road’, so to speak.

We did a lot of research regarding timeshares. Although it would not solve the ‘money’ issue, it seemed to be the answer in regards to travel/vacation accommodations.

Well, at first that is.

Generally speaking, we established that a reasonable timeshare cost for a ‘mediocre’ resort would be between $ 8000 & $ 15000. Much, much higher if we were looking to buy into a REALLY amazing one! This was an initial fee that did not include signing or legal fees. The average $ 750+ maintenance fee is payable EVERY year whether we used the timeshare or not. Oh, not to mention the ‘special assessment’ fees that are unexpected, short notice and non-negotiable. Our neighbor paid the equivalency of two maintenance fees on his timeshare this year, due to a ‘mandatory’ new-furniture remodel for the building.

We also found out that with most timeshare purchases, the yearly fees, etc., NEVER end! Timeshares are most often lifetime contracts that are also deeded contracts inherited by your children. What this means is a lifetime of payments for both you AND your heirs!

While considering a timeshare purchase as a possible option, we really started paying attention to our friends and family members who were timeshare owners. It became increasingly evident that ALL of them were regretful of their purchase. The number one reason of their dissatisfaction, across the board, was not the cost at all, rather the availability of units – or lack thereof! Owning a timeshare that you are unable to use seems to be the general complaint.

The original purchase price of your timeshare, combined with your yearly fees are the factor which determines your ‘leverage’ in terms of location, unit size/condition & availability. Truth is, if you got what you thought was a ‘great deal,’ it is unlikely you will be granted a luxury unit, at an exotic & popular destination during a desirable time to vacation. That simple. Ask around! There are nearly as many ‘timeshares for sale by owner’, as there are ‘fish in the sea’…interesting isn’t it? If they are so magnificent, then perhaps someone could explain why nobody wants to keep them?

Besides the obvious reasons for distinguishing our timeshare idea, this was not something that was going to generate an income for us & therefore the ‘road block’ was still firmly in place! Remember, the only way we can afford to travel, is if we can supplement our current income…preferably by working from a laptop computer from ANYWHERE in the world!

…Perfect scenario you ask…

Well, long term, we are looking to sell our business & home in Canada & make sunny beaches & relaxation our new permanent lifestyle. A flexible & lucrative online business will be the driving force enabling us to see our DREAM become our REALITY!

…Closer than you think…

More Timeshare Financing Articles

Genuine or Not: How to tell if the Timeshare Transfer is Legit?

by Old Shoe Woman

Article by direct transfers

Thanks to its popularity during the free-spending days before the depression, the timeshare industry has become a haven for scammer seeking to fool consumers and potential buyers. Aside from fraud, the industry is also filled with malicious sellers and unethical companies who’ll do anything to make a sale, including deceiving people. Because of these practices, many who fell victim to these timeshare “traps” have since wanted to get out of their unwanted investments.

One of the main headaches of timeshare owners is undelivered promises. Poor amenities, cutting back on upkeep and renovation, and misleading brochure info are just some of the reasons why timeshare members are jumping ship.

For others still, inflexible weeks and rising annual fees have become a bane to their yearly vacations. Rather than helping them have a good time, the bond of having a timeshare unit instead causes anxiety, and much worried planning and checkbook-balancing.

When caught in such a situation, asking timeshare transfer companies for help is the most logical and practical thing to do. Timeshare transfer companies provide quick and hassle-free solutions to timeshare nightmares. They take care of all the paperwork, guaranteeing freedom from future obligations, for a fraction of what real-estate agents cost. However, before making the pay, there are a few substantial points that one needs to clarify with these companies to make sure that one’s not falling for another trap.

Upfront Fees: Other companies call them deposits or advance pay. Whatever they’re called, paying these fees does not guarantee a successful transfer. Most companies will tell you that they are used to initiate the process and cover the cost for the primary paper work. However, it still pays to read the fine print stated on the contract. Do your part and find out if the company is legitimate in the first place. Also, make sure that there are clauses that guarantee a successful transfer or at least some percent of your money back in case the transaction does not succeed.

About their process: Asking a company how they manage their business and how they go about resolving issues will give one a gauge on the firm’s knowledge about the transactions they deal with. It also allows one to have an idea of the steps that the company shall take to effectively liquidate the property. Ultimately, this gives the client a rough understanding of the procedures involved, cost and the duration of the transaction. It is important to note that these companies use professional agents who are experienced with dealing with on-goings like these. These agents’ actions greatly affect the duration and the total cost of the transaction.

Issues and Testimonials: Having real people speak for the company is the best way to understand their reputation. Ask for names and possibly contact numbers of people they’ve serviced before so you can do your own personal digging. Additionally, it is important to research about the company’s background on the net. If the company was somehow involved in any scam or was accused of such, you’d probably see that on the net. Check for more information and then clarify them with the company’s agent.

Find More Timeshare Transfer Articles

ALERT! Resort Travelers and Timeshare Owners

by Jari Salomaa

Article by GM Mobley

A vacation is something all of us can enjoy, as it provides time away with the family, friends,or just that special someone. Vacations are also a great way to unwind from the pressures of life; and, just have a great time. There is now a far more economical way to enjoy 3, 4,and 5 Star Resort properties with all the luxuries and amenities you can imagine at just a fraction of the market cost. The key to all of this is to join a network of smart travelers who have obtained a Luxury Resorts Membership. This concept of vacationing offers a lifetime of holiday or anytime luxury through one of the world’s largest online registry of luxury resorts.

There are literally hundreds of Luxury Resorts, all around the world that one can choose from for a vacation. High-end Resorts with gorgeous bedrooms, big living rooms, full kitchens and specious balconies over looking the ocean. Many typical resort condos include: designer decorated furnishings, fully equipped kitchens, king size beds, living rooms with lovely sleep sofas, spacious bathrooms fireplaces, balconies with views, relaxing pools, hot tubs, and barbeques, family and children activities, fitness centers, bike and game rooms and laundry facilities.

There are many beautiful locations to choose from. A popular location is that of Maui in Hawaii. Maui is one of the most romantic places in the world. Maui has plenty of breathtaking beaches with lots of other things to do as well. Another well known beautiful area to vacation is in Barbados..This City offers resorts that are like paradise. Offering a combination of privacy, numerous activities and first class service. There are golf courses; Hugh spas, white sandy beaches and the Caribbean Sea.

Vacations are a time for relaxation and fun; therefore, it may be very beneficial to look into Luxury Resorts membership. You will be provided everything you need to have the vacation of a lifetime. Don’t get bogged down with all of the planning it takes to have an awesome vacation. Luxury Resort Membership is a brilliant concept in vacationing, offering a lifetime of holiday luxury through one of the worlds largest online registry of luxury resorts. Your personal “access pass” to a world of enjoyment; from luxury resorts at top rated golf courses, to exotic bungalows sitting over the ocean, our members are in love with this approach to vacationing.

Our membership offers an unparalleled level of service and benefits which has fueled our growth and success. Our full service customer support/service team has the experience and resources to fulfill our member’s most special requests; in as much as all members are special to us. Preview some of the resorts and get full details at our website. http://www.mgmpublicationscom.com

Looking for a timeshare broker?

by keithwills

Article by Dalie Abot

TimeshareHotDeal invests in the latest technology, using the most advanced marketing strategies for the purchase and sale of timeshare online. Try us and experience a world of difference.

TimeshareHotDeal is the leading online resource for finding a corridor to leave time or time-share real estate. Whether you’re looking for the resale of timeshare buy or sell in the resale of timeshare his dream vacation spot, TimeshareHotDeal stands ready to help. If you’re looking for a time share condominium, villa, suite or any other time-share real estate, you’ve come to the right place.

Our brokers and timeshare members specialize in promoting timeshare properties in the resale market. We have time share condos in big brands like Hyatt, Westin, Marriott, Disney Vacation Club, Westgate, Bluegreen, Hilton Grand Vacations Club and Wyndham. Every day, our marketing experts are using the latest technologies to strengthen our presence, both online and offline. Working with some of the best minds in the industry resale of timeshare, we have established an extensive network of professional contacts throughout the timeshare industry.

When you’re looking to buy or sell timeshare timeshare, contact one of our affiliated brokerages today. Working with a time of sharing licensed broker is the best way to make a sale of timeshare or purchase decision. No matter where you live or where their time share condo is, our team of real estate timeshare can locate an agent or timeshare timeshare real estate licensed in his hometown or place of destination. Sale of timeshare is not always the easiest thing – we’ll help.

TimeshareHotDeal is one of the freshest Web’s most exciting and resources for buyers and sellers interested in the resale of timeshare with the most experienced and friendly brokerage personnel available. Browse our comprehensive inventory of all types of time share villas, and you’re sure to find many big deals in the resale of timeshare resort in some of the most exciting places. THD is a hotspot for fabulous vacation timeshare property and resale of properties around the world. Because it is new, what we do things differently – better – than any other site brokerage time on the market.
Thinking of buying timeshare?

THD facilitates the search for their “dream holiday” location. You’ll love our books easy to use search capabilities. Only a few clicks and you’ll have access to an incredible variety of timeshare for sale. Want to talk to a real human? License time share brokers are just a phone call away.

Shopping online brokerage market is one of the best ways to acquire timeshares – without pushy presentations to sit across a wide and discounts are available at the turn of real estate resale market, timeshares can achieve the vacation of their dreams a reality!
Ready to buy or sell timeshare?

THD makes it easy – and profitable – to promote timeshares only interested buyers throughout the world. By choosing to go with our runners-time professionals, you do not pay a penny to sell their timeshares in advance! This means that our greatest concern is that the sale of timeshare property, because they are not paid until it has sold its appeal resale of property.

More Westin Timeshare Articles

Hotel Room or Timeshare Villa? No Comparison

by keithwills

Article by Erick Arndt

On our upcoming vacation, I didn’t have to think very hard about whether I wanted to stay in a vacation or a timeshare villa. But let me first start off by saying that I am not telling you to go out and buy a timeshare. First of all, I don’t think it is for everyone. It might not be for you.

But you should definitely take the time to hear these tips. They can change your vacations forever. Timeshare can be a lot of fun. It’s often misunderstood because many people have been abused by salespeople with wrongful sales tactics. What this blog is about is comparing staying in a hotel vs. a timeshare on vacation. Who doesn’t like more luxury on vacation?

What people don’t realize is that you don’t have to own a timeshare in order to stay in one. There are thousands of timeshares available to rent and many more for timeshare exchange. Timeshare salespeople make you feel like there is this “shortage” of units and you should have this urgency to buy. You can rent a timeshare from a resort or from a timeshare owner. And you have the freedom to bargain with either one. We have rented out our timeshare many times and it’s always worked out well. You don’t need a management company because the resort handles check-in, security, and any extra charges the renter might ring up on their tab. You simply get payment from the renter and then make the reservation for them at the resort. The renter checks-in and submits a credit card for deposit against damages.

Not only does the timeshare offer you more but it’s also less expensive to rent. Here are the 3 biggest reasons why it’s better:1. Tons of space: Hotel rooms are claustrophobic. It’s one room. There’s barely room to walk by the beds. A whole family in one hotel room is really pushing it. In a timeshare, there are multiple rooms. It has a separate bedroom, a kitchen, and another living room that converts to a bedroom at night (sometimes there’s even a locking door in between that offers complete privacy). You also get a balcony to sit outside, get some fresh air and enjoy a nice glass of wine. That doesn’t happen if you are vacationing in a hotel room. You can eat meals at a kitchen table and/or kitchen island. The bathrooms are much larger and some units include a Jacuzzi tub.

2. Lots of amenities: Just having a kitchen is a huge win. Personally, I like going to the fridge (a real one, not that mini bar thing in your hotel) and grabbing a cold drink and some food when I want. I don’t want to have to call room service and hope it’s open and then hope they remember to bring my food an hour later. I like having it now. And if you are vacationing with kids, every minute counts to avoid the dreaded “meltdown”.

Imagine a nice relaxing morning of having breakfast on your balcony overlooking the beach rather than fighting the crowd at the buffet downstairs. It’s healthier, less time consuming, less expensive and a more relaxing way to start the day. At night you have separate TVs so there’s no arguing about what to watch and even a DVD player. My unit has a really nice sound system (not that little alarm clock from the hotel room that can’t keep a station unless you hold the antenna and stand on one foot).

You don’t have to deal with the maid waking you up every day trying to clean the room. Timeshares have service once mid-week and once at the end. You don’t have to deal with hanging that silly door hanger to give yourself another 20 minutes of privacy.

3. Cost – It’s actually less expensive to stay in a timeshare. I know it’s hard to believe but there are thousands of timeshares that you can rent right now for much less than the cost of a hotel room in the same exact area. And if you own, the annual fees are definitely less than the cost of 1 week in a hotel room. A hotel room will cost you at least $ 150 per night with taxes. That’s over $ 1,000 for the week. If you’re on an island vacation it’s 2-3x that price. You’ll find almost all timeshares for rent that are below that price.

I know another option is renting a house. But there are a lot of unknown variables with that like who’s liable for damages or theft, location of house in a neighborhood, no brand name and unknown quality. I just think it’s odd to be sleeping in someone else’s bed and using their refrigerator. I don’t think it’s worth the hassle of doing that unless you know someone that has stayed there already. And most of the time, the cost to rent a house is much higher anyway. So that’s not a viable option for me.

So there you have it. It’s obvious; The timeshare wins. But before I can honestly tell you to go out and buy one or even timeshare exchange, some things have to change in the industry first. But I won’t tell you to stay away from timeshares either. If you know how to buy them and how to utilize them each year, you will have so much fun on vacation you’ll be silly!

May your best vacations yet come this year!

Cheers, Erick

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Everything That You Need To Know About Timeshares

Article by Donald Munoz

It worked well, and the idea spread throughout the world.1

There are two main types of timesharing plans: deeded and non-deeded. With the deeded type, you buy an ownership interest in a piece of real estate. In the non-deeded plan, you buy a lease, license, or club membership that lets you use the property for a specific amount of time each year for a stated number of years. With both types, the cost of the unit is proportionate to the season and the length of time you want to buy.2

Before You Buy

As with any major purchase, you need to understand what you are getting before you sign any papers or pay any fees. The general information should be accompanied by careful analysis and perhaps even professional advice that concerns all aspects of a particular timeshare purchase.

Before purchasing a timeshare consider the following points.3

* A major reason people buy timeshares is for the convenience of having prearranged vacation facilities. Therefore it would be wise to determine whether you will be able to use the timeshare facility regularly. When evaluating a timeshare with units in several locations, consider whether sufficient units are available at the sites you prefer at the time you want to use them.
* Question any investment claims made by the seller. The future value of a timeshare depends on many factors. Resale of timeshares is almost impossible.4 So, if you are considering buying a timeshare, do it, realizing that you will probably not be able to resell it; and, even if you are able to sell, you probably won’t be able to sell it for anything close to your original purchase price. Closing costs, broker commissions, and financing charges also must be considered as part of the investment costs.
* The total cost of a timeshare includes mortgage payments and expenses, such as travel costs and annual maintenance fees. The annual maintenance fees usually rise to equal or exceed inflation and could add hundreds of dollars to the purchase price. To help evaluate the purchase, compare the total timeshare costs with rental costs for similar accommodations and amenities for the same time in the same location.
* Do not act on impulse or under pressure. Review all documents or have someone familiar with timesharing review them before you make a purchase. Do not be pressured into making a purchase without having a couple of days to think about it. Find out if the contract provides a cooling-off period during which you can cancel the contract and get a refund.
* Be sure everything the salesperson promised orally is written in the contract.
* Remember that exchange programs, which offer the opportunity to arrange trades with other resort units in different locations, cannot be guaranteed. When you trade your timeshare unit for another, expect one of approximately the same value.
* Many timeshare sellers offer gifts to potential buyers who will listen to a timeshare sales presentation. Consider the value of these gifts or prizes. Most are of little value.5 It would be to your advantage to attend a sales presentation only if you are interested in the program.
* Your timeshare will be a good place to vacation only if it is run properly. Therefore you should consider researching with local real estate agents, Better Business Bureau, and consumer protection offices, the track record of the seller, developer, and management company before you make your purchase.
* If you are considering buying a timeshare on property where the facilities have not been completed, get a written commitment from the sellers that the facilities will be finished as promised, and require that a certain amount of your money be held in escrow.6
* Find out what your rights are if the builder or management company has financial problems or in some way defaults. Make sure that your contract has both non-disturbance and nonperformance clauses. A non-disturbance clause ensures that you will continue to have use of your timeshare unit in the event of default and subsequent third party claims against the developer or management firm. A nonperformance clause allows you to keep all your ownership rights even if a third party is required to buy out your contract.
* If you have any questions or complaints regarding timeshares or a timeshare that you have purchased, contact the Real Estate Commission of the state in which the timeshare property is located, as well as the Correspondence Branch, Federal Trade Commission, Washington, DC 20580.

How Timeshare Resale Scams Operate

If you already own a timeshare, be cautious about people who offer to help you resell the timeshare for a fee. Because many of these types are rip-offs, be careful to deal only with legitimate sales companies. Companies that use questionable resale practices operate like many other telemarketing scams. You might be contacted by a telephone salesperson or through a postcard, asking you to call a particular telephone number about selling your timeshare. The salespeople are likely to tell you that the market for resale of timeshares is “hot” and that their company has a high success rate in reselling these units. They may even claim that they have extensive lists of sales agents and potential buyers for timeshares and for an advance fee of hundreds of dollars these salespeople promise to sell your timeshare for a price equal to or greater than the amount you originally paid.7

The market for resale is actually extremely poor, because there is no secondary market for timeshares.8 Currently American consumers own 1.5 million timeshares. Approximately 870,000 of these are presently available for resale, with 845,000 for sale far below the original purchase price. In truth, over the past 20 years, only 3 percent of owners who have wanted to sell their timeshares have been successful, and the vast majority of those have had to sell below their original purchase price. So, it is highly unlikely that a company can sell the timeshare at all, let alone for the original purchase price.

There are some precautions to consider if you decide that you want to resell your timeshare and are approached by a resale company. (1) Do not agree to anything over the telephone. (2) Ask the salesperson to send you written materials to study. (3) Ask for company references of customers who have used their services. (4) Ask where the company is located and in what states it does business. (5) Ask if the company’s salespeople are licensed to sell real estate by the state where your timeshare is located, and check with the state licensing board to verify the information. (6) Be cautious of any company charging an advance “listing” fee for its service.9

Conclusion

Timesharing is not an investment product and is not intended as a way of making money. It is, though, a financial commitment to your leisure enjoyment. So, how much is leisure and preplanned vacation time worth to you? This is the question that must be asked before you decide to buy a timeshare. If it is not worth thousands of dollars in initial investment, plus hundreds more in maintenance fees, then you should probably stay away from timeshare promotions. But if, on the other hand, you enjoy preplanned vacations and realize that timeshare is not a money making investment, then it may be a good choice for you.

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