Timeshare Resale: Low Cost But At What Price?

Timeshare has become one of the segments of the travel industry that continues to grow dramatically over the years. It has become an accepted way to plan travel and vacation for many people around the world today.

A timeshare is at its core a “fractional” ownership of a vacation home. Timeshare ownership is a fantastic way to have luxurious accommodations at a cheaper price. Units tend to be luxurious condominiums including kitchen, dining, and living areas for vacationers to relax and enjoy their time away from home.

However, there are times when an owner finds they just do not want their timeshare anymore. Perhaps their financial situation has changed or their lifestyle situation has changed. Unfortunately sometimes it is the lack of understanding buy the purchaser on what the commitment is. Sometimes it is even a lack of disclosure by the salesperson (which commonly leads to the “timeshares are a scam” paradigm). At any rate, a timeshare becomes more of a burden than a benefit. At this point, timeshare resale is a viable option.

That is why, timeshare resells are cheaper. Regardless of their reasons, timeshare resells see to be a much better deal than the original offer from which the timeshare was first bought. In fact, the owner can usually expect anywhere between 10% and 50% of the purchase price.

This is more similar to selling a used car than selling a piece of real estate. However, it also allows the owner relief from the legal obligations of owning a timeshare.

When an owner resells timeshare, there are many timeshare companies that will successfully take a big fraction of your money and leave you with a less desirable profit. Legitimate timeshare companies fortunately exist to help you in selling your timeshare in a completely legal and desirable manner. These companies will help an owner to resell timeshare for its full market value.

Buying A Timeshare Resale

Similar to buying a used car, sometimes it is better to go with a good name, one that has been in the industry for quite some time.

For buyers, you can have your vacation planning move faster than you expect right after finding the ultimate vacation spot you have only been dreaming about for a fraction of the cost. When your ideal timeshare resells, make a wise buying decision and enjoy your dream vacation the way you should.

The hardest part is finding the timeshare resell.

Because the resellers do not have the promotional resources that the resorts do when selling new timeshares. Have you ever gotten those promotional deals for free vacation, free helicopter tour, or even $150 in retail gift cards? Resorts spend a lot of time marketing new timeshares and the resources used in these endeavors dwarf the promotional efforts of resell companies.

The internet is your best friend when it comes to finding resells whether they are on classified ads website or you find a reseller online. Make a smart decision when you buy and then you will be able to enjoy your home away from home at a fraction of the cost of new timeshares.

Timeshare Foreclosures – Why You Should Avoid Timeshare Foreclosure

One of the common questions that comes up about timeshares is “What will happen if I stop paying my maintenance fee?” This question is usually asked by timeshare owners who are having difficulty keeping up with their annual maintenance fees, due to increases or a change in personal financial circumstances. Or sometimes a special assessment for maintenance becomes too burdensome.

Many of these folks are under the mistaken impression that there would be no consequences to allowing the payments to lapse. But that could not be further from the truth. Timeshare companies will foreclose on your timeshare if you fail to pay your bill and this will wind up on your credit report, just like if you decided to stop paying your mortgage or a credit card bill. You may also wind up being pursued by a collections company for back payments and could possibly face additional penalties and fees as a consequence of non-payment.

Some owners actually think that just because they’ve lost interest in their timeshare and don’t intend to use it anymore, that the timeshare company will just take it back if the maintenance fee doesn’t get paid. But this isn’t how it works. If that were the case you’d find some properties with an abundance of vacant properties on their hands during the least desirable vacation times. So for the most part, no timeshare company is going to let you out of your contract. The maintenance fee continues to be an obligation even if you have no intention of ever using your timeshare again.

So the best bet if you need to stop paying is to find a way to sell your timeshare. Sometimes it even makes sense to simply give it away. Unfortunately, for some sellers, you might be holding onto a timeshare that isn’t particularly popular, or maybe your week isn’t in high demand. In this situation, it might even make sense for you to offer a financial enticement. For example, you might offer to pay this year’s maintenance fees, but allow the new owner to use the week.

Conducting your sale in this way wouldn’t save you this year’s expenses, but it would ultimately allow you to relinquish the responsibility to someone else. This is far preferable to having your timeshare foreclosed upon.

Just be cautious that when you sell your timeshare you are not being ripped off. You should not pay a salesperson an upfront fee to sell your timeshare for you. A professional real estate person collects commission only after the sale is finalized, not before.

Mexican Timeshare Fraud – Your Right to Cancel a Timeshare Purchased in Mexico

While the timeshare industry doesn’t have the best reputation for being completely forthcoming about how timeshares actually work, usually a lot of what the sales person says can be regarded as hype rather than outright fraud. Unfortunately though, this isn’t the case in Mexico where fraud is pretty commonplace in timeshare sales.

If you purchase a timeshare during a tour in Mexico, you should be aware that Mexican law requires a 5 business day cooling off period for timeshare purchases. This is also known as the rescission period. But getting this rescission period honored by the timeshare sales force is another matter all together.

Most of the fraud that occurs in the Mexican timeshare industry has to do with the rescission period. It is not uncommon that this law is completely ignored and some timeshare resorts require you to sign your rights away even though Mexican law does not allow this either.

Let me reiterate. The “cooling off” period is a right guaranteed to you by Mexican law and you cannot waive this right away, even though many timeshare sales personnel will insist that you must do so. It does not matter if they are selling you a “used” timeshare or if you are turning in a timeshare you own to cover part of the purchase price. You still have the right to cancel the sale within five business days.

Of course, enforcing the rights you do have is another matter altogether. If you do find yourself in a situation where you are trying to cancel the purchase of a timeshare that you bought in Mexico, make sure to contact your credit card company and dispute the charges if you paid by credit card.

In addition to your credit card company, you should also immediately contact Mexico’s consumer protection department, called Profeco. Their phone number is (+52) 55 5211-1723. You will need to send them a complaint letter and fill out some paperwork, but they will be a big help making sure that you get your money back, though it may take a while.

This is just another reason why I would recommend buying your Mexican timeshare from eBay or another reseller located in the US rather than buying it in Mexico itself. You will save money and a great deal of hassle.

8 Reasons to Reconsider a Timeshare

Hello, friends! I’ve compiled a list of 8 reasons to be cautious when thinking about purchasing a timeshare. None of these pitfalls are new, but they seem to be just as true today as they have ever been. Unfortunately, we continue to hear these same complaints from our customers on a daily basis, but hopefully, a few of you will read this blog, and take a moment to evaluate your options.

Timeshares Are NOT an Investment

As expressed time and time again, timeshares are a liability, and their financial value depreciates over any given period of time. This means that the instant you purchase a timeshare, the value plummets, along with the resale value.

Maintenance Fees

Fees that were promised to remain low during the initial sales pitch can begin to spiral out of control rather quickly. Along with general maintenance fees that will surely rise, there are other fees to keep in mind, such as special assessments, taxes, membership fees, and exchange-transaction fees. The owner must pay these fees whether they use their timeshare or not.

Travel Expenses

Another item that is often overlooked by overzealous timeshare purchasers is the question of travel. Sure, it might seem like an affordable vacation locale if one can account for the annual taxes and fees, but people often forget how expensive it is to travel to certain destinations. As anyone with a timeshare can tell you, airfare is not cheap and neither is fuel.

The Timeshare Industry is Complicated

The timeshare industry is extremely complicated, and entering into a contract should not be taken lightly. Resort developments are counting on their prey to not do their homework, thus making them easier to sell. If one isn’t well versed in the language of timeshares (e.g. fixed-week, point based systems, leased timeshares), it becomes even easier to fall victim to manipulation and predatory sales tactics.

You’ll Likely Never Break Even

Timeshares seem cheap at the initial time of purchase, but when compared with the cost of practical hotels over the lifetime of the contract, it’s likely that you’ll never reach a break-even point.

Little Vacation Flexibility

Trading your time for a unit in a new vacation location is not as easy as a timeshare salesperson would have you believe. It could nearly a year’s worth of advanced planning, and trading costs can add up quickly. Further, there’s no guarantee that you’ll be able to get your desired location during your desired time.

Timeshare Prices Are Negotiable

Even more than regular real estate or the local farmer’s market, the sticker price on a timeshare is highly negotiable. The salesperson doesn’t expect you to pay the initial price tag on the timeshare, and they are willing to come down on it. However, since timeshare salespersons expect to negotiate, there is a high mark up on the original price of the property.

Timeshares Are Nearly Impossible to Get Rid Of

A timeshare is a liability, not an asset. Therefore, the value will only depreciate over time, which makes the resale market virtually non-existent. There are many listing agencies and exchange companies who will make empty promises about the value of your property and the abundance of buyers lining up to purchase it, only to cash a large check without providing adequate service. The bottom line is that it is nearly impossible to sell a timeshare. The market has decreased significantly and shows no signs of rebounding.

This list is by no means exhaustive, but it should be a starting point for anyone interested in taking an honest look at what timeshare ownership really involves. Timeshare ownership can be a wonderful experience for many families, but it is important to do all the necessary research before signing on the dotted line. If you or someone you know is locked into a timeshare contract and looking for an exit solution, please contact Newton Group Transfers at (877) 354-4321.