Looking to Unload Your Timeshare?

Many families are looking for ways to reduce their expenses. One popular option is to unload any timeshares they own so they can hopefully recoup their investment and stop paying maintenance fees. Many businesses specialize in reselling timeshares, but the Better Business Bureau warns that many companies are using deceptive sales tactics to bilk thousands from already cash-strapped timeshare owners.

Many timeshare owners want to cash out now but unfortunately, not as many vacationers are buying. Timeshare sales have been steadily dropping and as a result, timeshare owners who are eager to sell are increasingly susceptible to offers that are simply too good to be true. Some unscrupulous timeshare resellers are taking advantage of the situation by misleading timeshare owners into paying thousands of dollars in the hopes of unloading their timeshare quickly. Many companies succeed in convincing timeshare owners that they already have interested buyers but require thousands of dollars in upfront fees—such as closing costs—from the sellers but ultimately fail to complete the promised sale.

One man who complained to the BBB was promised that the business had a buyer for his timeshare. The representative assured him that if the sale did not go through; he would get his money back. He paid a total of $7,710. The sale never went through, and he never got his money back, despite the verbal guarantee from the company.

The BBB offers the following advice to timeshare owners who are looking for help in selling their timeshare:

Use a business you can trust – Make sure the timeshare reseller you use is a BBB Accredited Business or at the very least has a good rating with the BBB. Avoid any company that fails to provide a street address and alternate contact information. A UPS or post office box is not enough. Check out bbb.org for business reviews and warnings. Verify the address with a mapping service, property manager and the licensing authority.

Confirm licensing requirements – Some timeshare resellers will use fake addresses or PO boxes in order to mislead timeshare owners. Confirm where the company is located and in what states it does business. Ask if the company’s salespeople are licensed to sell real estate where your timeshare is located. If so, verify this with that state’s licensing board.

Get the facts on the figures – Find out if the business charges a commission. Do they handle the entire closing and provide escrow services? Do they charge an up-front listing or advertising fee? What does it cover and is it refundable?

Be wary of upfront fees – Many complainants to BBB were burned by companies charging an advance “appraisal” fee for services or were told that they just had to pay closing costs and the timeshare would be taken off their hands. Consider opting for a company that offers to sell for a fee only after the timeshare is sold. If you are asked to pay any upfront fees, be sure to ask about the company’s refund policy.

Be aware of the “Balloon Strategy” – Dishonest timeshare resellers may start with an outrageous fee, and then reduce it to a more appealing number, to lure the seller to pay.

Don’t fall for the hard sell or empty promises – Don’t agree to anything over the phone but instead ask the salesperson to send you written materials; take the time to think it over and don’t be pressured. Unscrupulous timeshare resellers may claim that your property is in demand, and they can sell it immediately; unfortunately, these promises are often empty. Also remember that a guarantee is only as good as the company backing that guarantee.

Review the contract – Before you sign a contract with a reseller, review the terms and conditions of the contract. It should include the services the reseller will provide; fees, commissions, and other costs you will pay and when; whether you can rent or sell the timeshare yourself at the same time the reseller is trying to sell your unit; the length and term of the contract; and who is responsible for documenting and closing the sale. If the deal isn’t what you expected or wanted, don’t sign the contract. Negotiate changes or find another reseller.

Know the process – Inexperienced timeshare sellers can be easily misled. Before doing business with a broker, know the approximate value of what you own. Call the timeshare company itself to get the current selling price. Also ask them about any restrictions, limits or fees that could affect your ability to resell or transfer your ownership. Find out if the agent’s fees and marketing practices are consistent with the practices of other

agencies. To ensure the proper value of your property BBB suggests using a timeshare appraisal service. To do this for U.S. based timeshares, you’ll need to research the company with the real estate commission in the state in which your timeshare property is located. The Federal Trade Commission also has helpful tips for timeshare buyers and sellers.

Remember the “Too Good to be True” rule – Trust your gut, if it seems too good to be true; it probably is.

For more tips you can trust, visit BBB.org.

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