Think again, if you believe that timeshare resale is the way forward, we at TCA have highlighted several reasons why it’s proving to be a bad idea and in most cases unfortunately a scam.
It appears that there are more owners trying to sell their timeshares than there are buyers? The current situation is so bad that most sellers are selling their weeks for a pound or less. This is because no one bothers to inform the consumer that it’s practically impossible to sell their timeshare at the time of purchase.
Timeshare resale can be just as much of a scam as the original investment.
In one year alone more than 350 individuals fell victim to a resale scam in Florida. The scammers cheated those out of over 750,000 dollars.
Our article takes a closer look at why timeshare resale is 99% of the time the wrong way to go.
- Signs of a Typical Timeshare Resale Scam:
When owning a timeshare, many resell companies will target you. Knowing that getting rid of a timeshare is next to impossible. As a result, they can’t wait to pounce on you and try to take advantage of your situation.
Always remember if something sounds too good to be true, it probably is.
- The following are a few of the biggest warning signs you should look out for to avoid a timeshare resale scam:
- Asking for fees upfront.
- Scammers usually ask for anything between a few hundred to a few thousand pounds upfront.
- If consumers are told they need the fees upfront to cover administration costs, closing costs or taxes run in the opposite direction. Once monies have been sent it’s highly likely you will not hear from them again.
- In addition, disregard any company which promises that they can get back any monies from the original the scam. This is just another common scam to deceive more money from the consumer.
- And the promise of a huge return is highly unlikely.
The most common tale is that consumers are told by these resale companies are, that they can guarantee huge returns on their resale. While it sounds great, do not believe it.
The reality is it would be a miracle to get back a fraction of what was paid in the first place. When attempting to sell a timeshare, expect to lose money on the original investment.
The contract is usually unclear:
By the time resellers produce a contract, it will look a lot different than what may have initially been discussed.
In most cases, you won’t even see the contract, this should flag up warning signs.
They boast about buyers waiting:
Resellers will always brag that there are buyers just waiting to buy your timeshare. Also claiming that they can sell your timeshare by a certain date.
Think about it logically if it were that easy to sell a timeshare, you would do so yourself. The reality is that there are no willing buyers. These scammers are selling you a fantasy, nothing more.
They will lead you to believe the resale market is thriving:
Consumers are told the re sale timeshare market is booming, some even convincing clients with phony timeshare resale statistics and figures.
These are the easiest lies to spot. Consumers will know better than anyone that the market in their area is dead. Proving it would be hard-pressed to find anyone who is eager to take the timeshare off their hands.
What to do if you still want to resell:
Timeshare resale makes consumers vulnerable to con artists and it can be extremely difficult and rare to get a great return through a reseller.
However, should consumers still be convinced that timeshare resale is a good idea, here are several precautions to note.
Request everything in writing:
State from the very beginning that you wish to see all the information in writing. If the reseller refuses to cooperate, move on.
Question them about their fees:
Ideally, you should only have to pay fees once the reseller sells the timeshare. If they have any upfront fees, demand a written version of their refund policy.
Never commit over the telephone:
Many scammers will try to persuade people over the telephone or online. Refrain from doing so.
Before agreeing to anything do some research online, searching for reviews and/or complaints.
If the timeshare does manage to sell, never expect a return. The likelihood is you are going to lose money no matter what the situation.
Always keep your expectations realistic.
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk