Posts Tagged ‘timeshare resale companies’

How To Exchange A Timeshare: The 2 Most Misunderstood Words

Thursday, August 6th, 2009
Concepcion Bay

Concepcion Bay

There are 2 words that many timeshare owners fail to understand that keeps them from getting good exchanges with RCI and Interval International.

Many people interpret “not available” to mean that it will never be available.  So they hang up the phone thinking that the exchange process doesn’t work and the whole thing is a scam.

Their frustration stems from the fact that their salesperson made it sound like doing an exchange would be just as easy as reserving a hotel room. But it’s not! It’s much easier getting hotel rooms because there are so many of them and they are generally only 65% occupied. More importantly, hotels know their availability in advance unlike RCI and Interval International.

But doing a timeshare exchange isn’t the same as reserving a hotel. As timeshare owners we trade off the ease, availability and expense of reserving a hotel room to get larger more comfortable condos for our family. And when a timeshare exchange is done right, we get to stay in really nice resorts for a fraction of what we would normally have to pay.

But neither RCI nor Interval International know the availability of any timeshare resort in advance. They have to wait until the owners in the timeshare resorts deposit their weeks into their exchange pools before they can offer it us. If every timeshare owner deposited their weeks on or before Jan 1 of each year, then doing a timeshare exchange would be easier and more like making a reservation in a hotel.

But in the real world both exchange companies receive deposits throughout the entire year and not all at one time. That’s the reason that owners are told that their request is “not available” nearly every time they want to do a timeshare exchange. The important thing to understand is that just because you’re request isn’t available the day you ask doesn’t mean it won’t become available at a later date. You see “not available” in timeshare speak really means that there’s a waiting list of people who have already requested the EXACT same thing as you.

So whenever you hear “not available” you should immediately ask to be put on the waiting list.  RCI and Interval International call that doing a pending search or request.  Now, WHETHER your request becomes available will depend on WHERE you come in on that waiting list and is another very important aspect of doing a timeshare exchange.

So one of the keys to getting a good timeshare exchange is in understanding that there will ALWAYS be a waiting list for the best resorts and/or peak travel periods. Rather than being frustrated with it, accept it and learn how to work it to your benefit. Frankly, the more people that don’t understand what “not available” really means, the better your chances of getting what you want on exchange.

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Jeff Pierce, The Timeshare Expert, has taught thousands of timeshare owners the secrets to getting the best exchanges with both RCI and Interval International for over 21 years.

His two books, The Timeshare Exchange Bible – RCI Weeks Edition, and The Timeshare Exchange Bible – Interval International, are the only books of their kind in the timeshare industry and designed to help you  master at the very complicated art of getting good exchanges.

I would love to have you share your opinions and personal insights on this blog.

For 10 FREE videos on getting a better exchange in RCI and II, go to TheTimeshareExpert.com.

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15 Questions to Ask When Selling Your Timeshare

Monday, January 14th, 2008

Below is a list of questions to ask a timeshare resale company if you’re going to sell your timeshare.  Pay attention to how they answer and their willingness to answer your questions.  Legitimate companies have nothing to hide while timeshare resale companies just after listing fees will dance around many of these questions.  If you have doubts find another company and always remember, never, never pay a timeshare resale company money upfront.

 Questions to ask timeshare resale companies

1. How many sales a week do you do?
2. How are you going to market my resort?  Will you send me that in writing?
3. Have you ever re-sold my timeshare resort before?
4. Are you registered with the BBB and ARDA?
5. Are you a licensed real estate broker?
6. What do you think it’s worth?
7. How long will it take to sell if I price it competitively?
8. Are there any upfront fees?  Why?
9. Do you advertise or just rely on the people finding it on the Internet?
10. Where do you advertise and how much a week do you spend?
11. What is your commission?  Is it negotiable?
12. Will your commission be handled in escrow?
13. Who handles the closing?
14. What will I net after all is said and done?
15. Can I list with you and several other agencies?

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The 10 Biggest Mistakes When Selling Your Timeshare Part 6

Saturday, January 12th, 2008

Mistake 9: Selling out of desperation

Unethical timeshare resale companies know that there are a lot of desperate people wanting to unload their timeshare and they are very aggressive about contacting them.  If you have a deed to your timeshare then it’s public knowledge and on record at the county courthouse.  Scammers access the courthouse records to make lists of timeshare owners and sell the lists to timeshare resale companies. 

If you’ve owned your timeshare for any length of time you’ve probably already received an unsolicited letter or phone call from a timeshare resale company.  This is usually the sure sign that someone’s out to scam you out of a listing fee.  The phone solicitors can be particularly persuavsive in convincing you that they will sell your timeshare quickly and for a tidy profit.  Coincidently, they have a hot buyer who just so happens to want what you have and you’d better move fast before he buys from someone else.  They’ll then suggest you list it over the phone and pay the listing fee so they can call the prospect with the good news.

The rest of the story goes like this.  You never hear back from the agent nor can you reach him at the office.  You’ve left many messages for him but he won’t return your calls.  If you complain to someone they may tell you he no longer works there but not to worry because your timeshare is listed and will continue to be listed until sold. 

Never go for the quick sale no matter how persuasive the agent is.  If it sounds too good to be true, it is.  Make sure you check out the company and remember that it’s going to take a while to sell your timeshare.

Mistake 10: Misinterpreting the Timeshare Resale company’s website or claims
 
Don’t interpret a resale company’s claim, either verbal or on their website, that they have year to date, $20,467,000 of resale and rental offers to mean SALES.  This is common practice today and very deceptive.  What you want to know is how much of that $20,467,000 has been sold? Prying that information out of the timeshare resale company is difficult and take with a grain of salt what you’re quoted.  Write it down and call back the next day and see if the quote is similar before listing your timeshare.  If the actual amount sold is only a small portion of the total look elsewhere.  Whatever you’re told, ask for it in writing or email.  Their willingness or unwillingness to do that speaks volumes of their credibility.

Monday’s post will be a list of questions to ask timeshare resale companies to determine if they are legitimate.

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The 10 Biggest Mistakes When Selling Your Timeshare Part 4

Thursday, January 10th, 2008

Mistake 5:  Signing an exclusive listing with one timeshare resale company

Never give an exclusive listing to one timeshare resale company to sell your timeshare.  An exclusive listing means the company will be paid their commission, typically 10%, no matter who sells it.  Even if you sell it to your neighbor or co-worker you will owe the listing company their 10% commission.  And it effectively prevents you from listing it with multiple other resale comapanies since they wouldn’t get paid if they did sell it.

Always sign an “open listing” giving you or anyone else the right to sell your timeshare.  This means you will only pay the listing company a commission if they sell it.  If you can find more than one reputable resale company then sign an open listing with all of them.

Mistake 6:  Not checking with your home resort

See if the developer of your resort will buy it back.  It’s rare but worth a shot.  Also, check to see if there is still an onsite salesperson that handles re-sales.  It’s easier to sell it to someone onsite than to someone that just sees it on their computer screen.  Finally, if the first to suggestions aren’t available see if there is an onsite bulletin board where you can hang a flyer.  I would advise against putting an add in the local paper.  It’s too expensive and not effective.

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The 10 Biggest Mistakes When Selling Your Timeshare Part 2

Tuesday, January 8th, 2008

Mistake 1:  Paying upfront fees

If a resale company asks you to pay any fee upfront to market your timeshare, don’t walk, but run away.  This is the sure sign of a rip-off.  The fee quoted can be anywhere from $200-$1,500 depending how desperate and vulnerable the listing agent feels you are.  They’ll tell you the money is to be used for a listing, appraisal or advertising fee.  Some really disreputable timeshare resale companies will tell you they just so happen to already have a buyer and just need $500 to open escrow.

Regardless of the story given as to why you have to pay money upfront, companies that charge upfront fees are far more interested in collecting fees than selling your timeshare.  The most these companies do to actually sell your timeshare is to put it on their website along with hundreds of others.  There it will sit and sit and your calls will not be returned. 

Do not listen to how they advertise in the New York Times or USA Today or how much they spend on web exposure.  If they’re asking for money up front it’s a scam. Many of them will tell you they will sell your $15,000 timeshare for $25,000 just to get your listing fee.

A sure sign of a reputable timeshare resale company is that, other than a nominal fee of $50-100, they will take their typical 10% commission at close of escrow just like in the regular real estate market.

Mistake 2:  Listing your timeshare too high

Most timeshares sell, when they do sell, for only 10-50% of your original purchase price.  As mentioned before, this is because of original marketing costs and the vast supply of weeks for sale. 

You must research what your or comparable resorts are selling for on the Internet. Look first to your resale company’s listing for comparable properties but don’t stop there. Take some time and look at some of the thousands of other resale sites as well.  You will find a great disparity in prices for exactly the same timeshare.  I’ve seen the exact same week listed for $1,500 on one site and $15,000 on another.  The company that had it listed for $15,000 was most likely a rip off and told the owner it could be sold for that just to collect the upfront fee.

Most importantly, if the company you are going to use has your exact same timeshare for sale, which is not unusual, for $2,500 you should obviously price yours below that. You’ll need to check back periodically to see if someone else has undercut your price and adjust accordingly.

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