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Thursday, October 09, 2008
Timeshare Resales Scams - Read This Before You Sell Your Timeshare
Recently, Stroman Realty Inc's CEO, Wayne Stroman, published a warning and information letter on his website www.timesharelink.com.
In this world of instant information accessible through the world wide web, not everything you find is reliable. This is especially true if you begin searching the internet for information about selling your timeshare. In the last few years dozens of websites have appeared and offer services to help you sell your timeshare. Unfortunately many of these turn out to be pages generated for the sole purpose of selling ads for Google and others. They offer little information, no accountability, and zero experience.

They may even draw attention to themselves by luring those seeking timeshare information from well established companies like Stroman Realty, Inc. Brand names are hijacked, and then the final bait and switch takes place.

Timeshare resales scams and fraudulent practices have been around a long time. Unsuspecting timeshare owners have paid thousands of dollars to get their timeshare transferred to someone else only to discover that the timeshare title was never transferred, they still hold the deed, and are liable for maintenance fees. And the company they paid their $2,000 to $3,000 fees to cannot be found.

You can sum up the article in this quote: "The use of look-a-like services can frustrate buyers and sellers to the timeshare resale process and can cause loss of time and money that could have been saved."

Stroman Realty, Inc has been in the timeshare resales business nearly three decades and is still under the same original management. That's an important factor when deciding how to go about selling your timeshare.
Posted By Paul At 2:12 PM • Comments (1) Trackbacks (0)
Wednesday, October 08, 2008
Las Vegas Timeshares - Growing Too Fast?
Buried in an article about how to land a casino job is a projection of how many timeshare units are to be built in Las Vegas over the next 2 years:
At least 2,500 new timeshare units. That's how many are projected for construction in Las Vegas over the next 2 years. And, according to UNLV sources, if developers can get another $13 billion in financing (good luck) they predict a whopping 7,088 timeshare units and 36,703 hotel rooms to be built over the next few years.

So what does that mean for the owners of timeshares in Las Vegas? I don't think Las Vegas has any more room to grow as a desirable destination - thus increasing the value of a property there. Adding over 7,000 timeshare units in Las Vegas will not likely add that much more versatility for those who participate in timeshare exchange programs.

If anything, it may gradually dilute the value of older timeshares already established in Las Vegas. This may have a negative impact on anyone who owns a Polo Towers or Jockey Club timeshare for example. The negative impact would become obvious when it comes time to sell your timeshare.

It's just a matter of supply and demand. The older timeshares are likely not going to be demolished or go away.

If you were ever considering selling your Las Vegas timeshare, I'd say don't procrastinate any longer. Get your best value for your timeshare now and sell it. Use a timeshare resales broker.

"Just my 2 cents."
Posted By Paul At 9:16 AM • Comments (0) Trackbacks (0)
Monday, October 06, 2008
When to Sell Your Timeshare
"I own a timeshare - how will I know it is a good time to sell it?"
Often a timeshare owner will get to the point where they decide it would be better to sell their timeshare than to keep paying their maintenance fees. Financial reasons are the reason most people give when explaining why they want to sell their timeshare. Circumstances in life may change such that it is no longer an affordable option.

Sometimes a change in family status may cause a timeshare owner to decide to sell. Divorce, death, or children "leaving the nest" could all be reasons why someone may decide to sell.

Owners may also become frustrated with their attempts to trade or exchange their timeshare through RCI or Interval International. The exchange process may not be living up to how they perceived it should work for them. As a result, out of frustration, an owner will decide to sell their timeshare since they cannot get an exchange that they desire.

There are situations where special assessments or increasing maintenance fees may persuade a timeshare owner to sell their timeshare. Timeshare owners do not often anticipate that their annual dues (maintenance fees and taxes) will increase. But often they will.

Ultimately, when a timeshare is not being used, it is time to sell it.
Posted By Paul At 11:06 AM • Comments (0) Trackbacks (0)
Friday, October 03, 2008
Marriott and Westgate Timeshare News
Both Marriott and Westgate timeshare developers have been in the news lately. The news has focused on how the current economic situation with credit is impacting their sales.
Today's Washington Post reported that Marriott's third quarter profits were down by 28%. However they still had a profit of $94 million! Here's how the lack of credit is effecting timeshare sales for the developers: They sell their timeshares and finance them. They collect the "notes" (loans) and then sell them to companies to manage so that they can quickly convert the sales into cash versus loans. Rinse - Repeat.  But the cycle is interrupted when timeshare resort developers like Marriott and Westgate (who've been in the news a lot lately) cannot find buyers for their loans.

The Senate has passed a multi billion dollar bailout and the House votes on it soon. If it passes, the resorts should quickly be back on track with record breaking sales.

There should not be much of an effect on timeshare owners when it comes to their property's maintenance or service. Most cuts by the big resorts have been in their sales divisions.
Posted By Paul At 9:49 AM • Comments (1) Trackbacks (0)
Tuesday, September 30, 2008
Profile of a Timeshare Sellers' Options: (Part 7 of a 7 Part Series)
Final part of the series: Selling your timeshare through a Realtor.
When the final decision has been made to sell your timeshare, you will find yourself faced with a number of resale alternatives. To help prepare you, this Blog will be profiling the various options available to you in the timeshare resale marketplace. It's important, as a serious timeshare seller, to take note of what each of these snapshots represents in relations to your own resale situation. Knowledge is power. Do your homework. Here is the final profile in the series. 

Profile #7: Selling Your Timeshare Through a REALTOR® Who is also a Timeshare Resale Specialist

Reselling your timeshare through a full service real estate broker who also specializes in Timeshare Resales gives you the best of both worlds. You will have working for you

(1) a professionally trained REALTOR® who is accountable to industry ethics and standards, has contract negotiation skills, the ability to turn a shopper into a qualified buyer, closing expertise, etc. and

(2) a timeshare resale specialist with first hand experience in reselling timeshare on behalf of individual owners and understanding the many variations characteristic to timeshare resales (e.g. point systems; fixed, floating, right-to-use, and deeded weeks; bi-annuals, quartershares, fractionals; red, white, blue, gold, and platinum seasons; familiarity with resorts; etc.) Here are a few qualities to look for in your Broker:

  • Massive national and international advertising (newspapers, magazines, trade journals, direct mail, Internet, etc.)
  • Incentive programs to encourage vigorous selling by their own Sales Associates and engaging other Cooperating Brokers across the nation to maximize exposure to clients timeshare properties for resale.
  • High tech, user-friendly communication and computer systems to meet the needs and demands of their clients.
  • On-going training and continuing education for Sales Associates; a robust Sales Support Department; membership in the National Association of REALTORS® and timeshare industry organizations; and active involvement in timeshare issues.
  • Easy access to escrow or title companies acquainted with closing procedures unique to timeshare.
  • Easy access to finance companies for buyers who need financing.
  • Company policies that promote buyer motivation founded on market value, convenience and selection.
Obviously, this is only a snapshot of selling your timeshare through a REALTOR® who is also a Timeshare Resale Specialist and isn't all-inclusive by any means; however, it may contain a few items that perhaps you had not considered.
Posted By Paul At 2:03 PM • Comments (0) Trackbacks (0)
Wednesday, September 03, 2008
Profile of a Timeshare Sellers' Options: (Part 6 of a 7 Part Series)
Overview of "Broker Takes the Week".
When the final decision has been made to sell your timeshare, you will find yourself faced with a number of resale alternatives. To help prepare you, this Blog will be profiling the various options available to you in the timeshare resale marketplace. It's important, as a serious timeshare seller, to take note of what each of these snapshots represents in relations to your own resale situation. (Next week, the final post in this series of Timeshare Seller's Options will be: Selling your timeshare through a REALTOR® who is also a Timeshare Resale Specialist.)

Profile #6: Broker Takes the Week Program

Initially it sounds great! So easy. However, this method of reselling is ill-advised. Here is the scenario:

The Broker typically takes over the week for a one to three year period to try to sell it. Sellers who participate in this method of resale should note that the broker may choose to sell the property as a low dollar "exit or bonus program" to other resorts if he cannot find an individual buyer. (This may be good for the broker but not so hot for the seller!)

The Owner has no vacation rights to use the unit during the listing period; has nothing to bank or exchange with an exchange company; and nothing to rent out to try to recover maintenance fee payments.

After multiple maintenance fee payments have been made and perhaps monthly mortgage payments also (with no vacation to enjoy), the owner is generally angry and may relinquish the week back to the resort.

Obviously, this is only a snapshot of selling your timeshare and isn't all-inclusive by any means; however, it may contain a few items that perhaps you had not considered. Generally, selling your timeshare through a Net Listing Agreement is not recommended.
Posted By Paul At 1:48 PM • Comments (0) Trackbacks (0)
Tuesday, September 02, 2008
Profiles of a Timeshare Seller's Options (5th in a 7-Part Series)
Selling Through a Net Listing Agreement
When the final decision has been made to sell your timeshare, you will find yourself faced with a number of resale alternatives. To help prepare you, this Blog will be profiling the various options available to you in the timeshare resale marketplace. It's important, as a serious timeshare seller, to take note of what each of these snapshots represents in relations to your own resale situation. (Future posts will feature two other options for reselling your timeshare: "broker takes over the week" program; and licensed REALTOR® who is also a Timeshare Resale Specialist.)

Profile #5: Selling Your Timeshare Through a Net Listing Agreement

Regardless of what you've heard, how tempted you are, or how desperate you feel - be wary of reselling your timeshare through a Net Listing Agreement.

  • Many Listing services May not accept Net Listings because they are deemed in some instances to be unethical. The National Association of Realtors recommends avoiding Net Listing Agreements as they create an unavoidable conflict with the client's best interests.
  • The Seller says to the broker, "Just get me X amount and you can keep any amount above that." The conflict arises upon funding -- when the seller receives that set amount while the broker pockets any excess. sounds simple, doesn't it? However, this "excess" can be considerable. Look at the following example:
$3,000 - set amount expressly agreed upon by seller prior to sale $7,500 - Final sales price from broker's buyer $4,500 - excess amount to the broker Remember, a listing agent's fiduciary is to YOU, the Seller! Obviously, this is only a snapshot of selling your timeshare and isn't all-inclusive by any means; however, it may contain a few items that perhaps you had not considered. Generally, selling your timeshare through a Net Listing Agreement is not recommended.
Posted By Paul At 10:40 AM • Comments (0) Trackbacks (0)
Friday, August 29, 2008
Profiles of a Timeshare Seller's Options (4th in a 7-Part Series)
Option #4: Selling your timeshare through an unlicensed advertising company.

When the final decision has been made to sell your timeshare, you will find yourself faced with a number of resale alternatives.  To help prepare you, this Blog will be profiling the various options available to you in the timeshare resale marketplace.  It's important, as a serious timeshare seller, to take note of what each of these snapshots represents in relation to your own resale situation.

(Future posts will feature other options for reselling your timeshare via:  net listing program; broker takes over the week program; or licensed REALTOR® who is also a Timeshare Resale Specialist.)

Profile #4:  Selling Your Timeshare Through an Unlicensed Advertising Company

Okay.  You're ready to sell your timeshare.  Using an unlicensed advertising company covers only one component in the process of selling your timeshare -- equivalent to running a classified ad in a newspaper or magazine.  Once a buyer has contacted you, your responsibilities have just begun.  You will still have to negotiate the deal, finalize the sale (including contract execution), arrange for closing, transfer of title, deed registration, etc.  Here are a few things to consider: You will have to make the decision of how the transaction will be closed and funded.  The choices are: 

(a) using your home resort to close the sale for you (some resorts offer this service--most do not);

(b) finding a closing/title company that processes timeshare transactions to close on your behalf; or

(c) handling the closing for yourself, in which case, it might be advisable to consult a real estate attorney to avoid unforeseen problems.  Keep in mind the fact that most timeshares are real estate entities that require the same legal consideration as any other real property.  However, it is not the traditional real estate with which most people are familiar.  If you choose to place your timeshare property FOR SALE with an unlicensed advertiser or on an internet advertising website, consider the following:

  1. Using an unlicensed advertising company to advertise your timeshare for sale does not give you the protection of professional real estate advice, consultation or timeshare resale expertise. 
  2. Placing a classified ad on an Internet advertising website carries with it the potential for your property to simply get lost among the throngs of other properties listed on that site even if the site has decent positioning. 
Obviously, this is only a snapshot of selling your timeshare through an unlicensed advertising company  and isn't all-inclusive by any means; however, it may contain a few items that perhaps you had not considered if you are planning to sell your timeshare through an unlicensed advertising company.
Posted By Paul At 1:47 PM • Comments (0) Trackbacks (0)
Tuesday, August 26, 2008
Profiles of a Timeshare Seller's Options (3rd in a 7-Part Series)
When the final decision has been made to sell your timeshare, you will find yourself faced with a number of resale alternatives. To help prepare you, this Blog will be profiling the various...

options available to you in the timeshare resale marketplace. It's important, as a serious timeshare seller, to take note on what each of these snapshots represents in relation to your own resale situation.

(Future posts will feature other options for reselling your timeshare via: non-licensed advertising company; "net listing" program; "broker takes over the week" program; or licensed REALTOR® who is also a Timeshare Resale Specialist.)

Profile #3: Selling Your Timeshare Through Your Local Real Estate Office

Okay. You're ready to sell your timeshare. The majority of local real estate offices don't specialize in selling timeshare properties. Therefore, it is understandable that most are unfamiliar with the concept; uninformed about the resorts; and unprepared for the major marketing efforts necessary to meet the needs of the timeshare buyer or seller. Typically they do not have adequate advertising budgets to conduct the massive marketing campaigns essential to reselling timeshare. Most real estate offices tend to pursue high dollar sales due to the fact that their commission on each sale generally ranges from 3% to 6%. For instance, a sale of a $200,000 home generates a $6,000 to $12,000 commission versus a sale of a $10,000 timeshare at 10% commission generates $1,000 in commissions. As you can see, this disparity provides little incentive when national marketing costs are also taken into consideration. Unless your Real Estate Broker specializes in timeshare resales, this method of reselling is generally not effective for the reasons stated. However, if your Local Real Estate Brokerage is also a Timeshare Resale Specialist (which many are), you can presume that they will be able to help you in the sale of your timeshare. 

Obviously, this is only a snapshot of selling your timeshare through your Local Real Estate Office and isn't all-inclusive by any means; however, it may contain a few items that perhaps you had not considered if you are planning to sell your timeshare through your Local Real Estate Office.
Posted By Paul At 3:13 PM • Comments (0) Trackbacks (0)
Wednesday, August 13, 2008
Profile of a Timeshare Sellers' Options: (Part 2 of a 7 Part Series)

When the final decision has been made to sell your timeshare, you will find yourself faced with a number of resale alternatives. To help prepare you, this Blog will be profiling the various options available to you in the timeshare resale marketplace. It's important, as a serious timeshare seller, to take note on what each of these snapshots represents in relation to your own resale situation.

(Future posts will feature other options for reselling your timeshare via: local real estate office; non-licensed advertising company; net listing program; broker takes over the week program; or licensed REALTOR® who is also a Timeshare Resale Specialist.)

Profile #2:  Selling Your Timeshare Through Your Home Resort

Okay.  You're ready to sell your timeshare. Typically, your first and natural inclination is to say, Honey, call the resort and see if they have a timeshare resale program to help us. If they do have a resale program and are no longer selling retail, fine. Generally, you can expect to pay around 25% to 40% sales commission.  (Unfortunately, a good percentage of timeshare resorts do not offer a resale program for the benefit of their individual owners who want or need to sell.)  If your home resort has a resale program but is still selling retail to the public, think about this:  When a buyer walks into the resort, which unit do you think the Resort Sales Rep will promote first -- an original unit at the higher retail price (where the resort has up to 50% of the retail price in marketing costs), or a unit that an owner has listed for resale, generally at a lesser resale price.  Consider the following:

  1. Common sense dictates that resorts do not sell their timeshares to buy them back later.  However, some timeshare resorts will consider œbuy backs based on a Right of First Refusal if the selling owner has contracted with a buyer and received earnest money. 
  2. If your resort has no resale program, ask them if they have plans to make this service available.
  3. If your resort does have a resale program, ask if it is a reload program consisting of POA inventory to be resold to existing owners (typically priced low.)

There are some timeshare resorts that will not transfer special programs from the selling owner to the new purchaser when the timeshare transaction was initiated by a third party. This practice is to deter owners from going to third party resellers and to encourage them to sell through the home resort.  This can present problems for the selling owner because one of the reasons the new purchaser elected to buy the timeshare in the first place was to take advantage of the special programs offered by the resort.  However, many of today's timeshare buyers have become more sophisticated and knowledgeable about their timeshare purchase and are saavy enough to compare the savings realized by the resort's special programs versus the savings achieved by purchasing in the resale marketplace. 

Obviously, this is only a snapshot of selling your timeshare through your Home Resort and isn't all-inclusive by any means; however, it may contain a few items that perhaps you had not considered if you are planning to sell your timeshare through your Home Resort.

 
Posted By Paul At 9:23 AM • Comments (1) Trackbacks (0)
Friday, July 25, 2008
Profiles of a Timeshare Seller's Options (1st in a 7-Part Series)
When the final decision has been made to sell your timeshare, you will find yourself faced with a number of resale alternatives. 

When the final decision has been made to sell your timeshare, you will find yourself faced with a number of resale alternatives.  To help prepare you, this Blog will be profiling the various options available to you in the timeshare resale marketplace.  It's important, as a serious timeshare seller, that you take note on what each of these snapshots represents in relation to your own resale situation.

First Up 

For Sale by Owner (FSBO)

(Future posts will feature other options for reselling your timeshare via:  your Home Resort; a local Real Estate office; a non-licensed advertising company; a net listing program; broker takes over the week program; or through a licensed REALTOR® who is also a Timeshare Resale Specialist.)

Profile #1:  For Sale by Owner (FSBO)

Okay.  So, you're ready to sell your timeshare, and you've decided to sell it yourself to avoid paying commissions.  Here are some of the steps you will need to take to get your timeshare sold For Sale By Owner.

STEP #1  Advertising.  You already know that in order to give your timeshare property maximum exposure in the secondary or resale market, you have to advertise it nationally.  So, you place an ad in a major national newspaper.  USA TODAY is probably one of the best publications to attract timeshare buyers. A one week minimum 4-line classified ad running M-F costs over $1,000.  (Remember, local advertising by itself typically does not generate sufficient buyer exposure to get timeshare properties sold.) 

STEP #2  Setting the price. It's a good resort.  But how should you price your unit?  What will the market bear?  You need to research the fair market value of your unit with similar units (i.e. same season”red, white, blue, green, yellow, platinum, gold, silver, bronze, high, medium, low, etc.; number of bedrooms, deeded, right-to-use, fixed, floating, bi-annual, quartershare or fractional, point systems, etc.)  You don't want it overpriced, but you sure don't want your price eroded either! 

STEP #3  Negotiating the sale.  If a buyer calls, you have to SELL him on it, tell him how GREAT it is, how much FUN he can have, how the EXCHANGE program works, what the maintenance FEES are and still how much MONEY he'll be saving over the retail price all the while crossing your fingers and hoping that he's genuinely interested and not just shopping. 

STEP #4  Reassessment. Hey, what about the Internet!  It's national in scope and couldn't cost too terribly much.  But which site will give you the strategic exposure you need?  Will the ad be effective or will your property get lost among the others listed there?  And who will help you with answers to all of your questions? You've already called your resort, and they don't have a resale program to help you out.  (Some resorts have viable resale programs, some don't.)  At this point, you're ready to turn the whole thing over to your neighborhood real estate agent since most timeshares are considered real estate. Then you discover that most real estate brokers are unfamiliar with timeshare much less getting it marketed, sold and closed.  They specialize in traditional real estate (homes, lots, etc.) and therefore, probably will be unable to help you!  So  you venture out on your own to locate contracts and a title or escrow company to do the closing.  Unfortunately, you learn that not all title companies close timeshare!  Great.  You've got to find someone who not only closes timeshare but also will get the job done right and fast not to mention, someone you can trust.  Your week is coming up soon and your buyer could evaporate if it doesn't close quickly!

STEP #5  The closing. Regrettably, you realize that contracts and a deed are needed, and finding a title or escrow company experienced in closing timeshare properties can be tough. Then you begin to worry.  Maybe you'd better consult a lawyer to make sure your interests are protected but the legal fees will dilute what you hoped to net from the sale.  By the way who pays the closing costs?  How is the deed recorded?  Will the buyer want title insurance?  Will you be at risk from omissions or something overlooked?

STEP #6  Final funding. Whew!  And still, the title has to be transferred.  And, oh yes, at what point are the funds transferred?  Will your buyer trust you enough to send you the money before you have provided him with title?  Or Will you trust the buyer enough to pay if you deliver the deed before he has made payment?  Will your points be transferable? Will your resort or the management company cooperate with you on the many items needing attention? 

Obviously, this is only a s