Resell Hell

All too often, timeshare owners have been told they can sell their timeshare at some point in the future, and because it’s such a good investment, they’ll make a nice profit on the sale after enjoying years of happy vacationing. Sadly, there are increasing numbers of distressed timeshare owners, who find that they cannot use the timeshare they have, or trade it successfully for another. Following this disappointment, they turn around to face the prospect of selling with an eager mind to that profit they were originally promised. Worse news follows the bad when they step into the world of timeshare resales. Time and again, these owners pay exorbitant up-front fees (usually $500 and up) to timeshare resale agents. The owners are hoping to turn a profit and get out of a timeshare contract that never delivered on its promises, except for the ones where they promise to sic collection agencies for delinquent or missed payments, and the promise to pass the timeshare along to the purchaser’s heirs forever. The actuality usually turns out to be that the resale agents are the only ones turning a huge profit as they rake in the up-front fees, meanwhile investing little or no time in ever advertising or promoting the timeshares they promised the clients to actively sell.

There are companies and individuals being investigated and prosecuted for activities such as this (Stroman realty for one), and it’s a good idea to spend significant time researching any and every company that you cross paths with that promises to help you get out from under your timeshare burden for the low low bargain price of $500 or so. With journalists, investigative reporters, financial advisors, authors and bloggers and even former timeshare owners cautioning people to avoid the seductive spiel of the timeshare resale agents, there can be no doubt that it’s a troublesome industry at best that has certainly earned its share of negative criticism.

In an industry where there are thousands upon thousands more timeshares available than are in demand, naturally the likelihood of selling at all, let alone at a profit is next to impossible. Jane Bryant Quinn referred to this over-supply in her article in Newsweek as a glut of timeshares. A quick search on the sales site, EBay produces on average about 1200 timeshares being listed for resale, and while a small percentage may appear to have bids and close, those transactions don’t necessarily go through all the time, because bidders indubitably find out the ridiculous costs associated with maintenance fees, special assessments, and taxes, and let’s not forget title transfer fees and closing costs as well. So that listing for $1 turns out to be a $1000 or more transaction. Also, State Attorney General’s are issuing cautionary advice about purchasing and reselling timeshares. Apparently the glut of unhappy chained-for-life-timeshare owners have complained en masse enough to move the government into warning people to be leery of timeshares.

It seems these warnings are going largely unheeded, at least on the front end of the purchase because timeshare sales are still increasing. It’s not until people realize the enormous burden of what they’ve signed up for that they start looking for sound financial advice, legal help, and a solid way out. The scams take place on either side of the transaction, and consumers would be wise to heed the advice of those who’ve gone before them, and simply just stay away.