The Hidden Risks of Buying a Timeshare on the Resale Market
While you probably hear quite a bit about timeshare sales presentations, there are fewer stories about the timeshare resale market. This is because in most cases, there isn’t much of a secondary market for timeshares. Some people, though, are attracted to the idea of a vacation club or timeshare property but turned off by the prospect of a high-pressure sales pitch that lasts hours. For them, the idea of buying a previously owned timeshare is attractive. If this is something that interests you, it pays to educate yourself on timeshare resale risks.
Though it is possible to buy a timeshare ownership from a current owner, there are quite a few potential pitfalls as well as some costs that you’ll need to be aware of. In this article, we’ll take a look at the circumstances under which you can buy or receive a secondhand timeshare, what timeshare resorts have to say about it, and the fees you’ll need to pay that might not be obvious at first glance.
As the leading timeshare exit company in the world, Centerstone Group is an expert on timeshare exit procedures in a variety of contexts. Notably, this includes transfers and resales of existing units and vacation club memberships. Read on for a discussion and tips about the process and aftermath of buying a timeshare on the secondary market.
Is It Safe to Buy a Timeshare on the Resale Market?
Generally, yes, it’s safe to buy on the timeshare resale market. If shoppers want to become timeshare buyers at all, buying a “used timeshare” (as opposed to directly from a developer) is the better way to do it. However, you need to make sure that you’re knowledgeable about the proper processes for a transfer. It’s also critical to know exactly what you’re signing up for when you buy that used timeshare or vacation club membership. To avoid many of the worst timeshare resale risks, keep in mind the following three guidelines.
1. Make Sure the Sale or Transfer Is Legitimate
Timeshares offered online or through brokers on the real estate market can seem like bargains to potential buyers. Because the original prices paid by timeshare owners to developers are so inflated, resale prices can more accurately reflect the true value of these properties.
You may have browsed eBay or Craigslist and seen owners trying to sell timeshares for ridiculously low prices. Some timeshares are even being given away for free or $1. You might think, “How could I possibly go wrong with such a cheap purchase price?” However, buyers should beware of potential scams and legal problems that can come with offers like this.
One of the timeshare resale risks to watch out for is that the people trying to sell or give away timeshares on these websites may not actually have the power to give these units to you. Some timeshare agreements forbid owners from trying to sell or transfer their unit without the assent or participation of the developer. If that’s the case, all you could be buying for $1 is a complicated legal headache with a timeshare resort.
2. Make Sure You Know What You’re Buying
It’s easy for a reseller to advertise that they’re selling a “vacation property” or “their week at a timeshare,” but the devil is in the details. Modern timeshares often don’t use the model of a fixed-week timeshare at a physical piece of real estate. The seller could instead have a points-based membership with Marriott, Disney, or another vacation club.
In other words, if you don’t read the fine print carefully, you might think that you’re buying real estate but may actually end up with a bucket of points for use at a certain brand of resort. (Note that you may not even be legally qualified to use those points!) Purchasing a used timeshare, then, requires a fine eye for detail and contracts so that you can be sure that you’re not getting saddled with something you didn’t expect.
3. Avoid “Timeshare Resale Company” Scammers
Of the many red flags that you can find in the secondary market, so-called timeshare resale companies are among the worst. These are companies that generally prey upon timeshare owners and say they can sell their timeshares to new owners. They charge thousands of dollars in upfront fees, then disappear without having completed the sale.
These scams are currently being investigated and fought by law enforcement. An announcement from the Minnesota attorney general describes the risks, signs to watch for, and actions you can take against these scammers.
Can Resorts Refuse to Honor Resale Timeshare Contracts?
Sometimes, timeshare developers may not want to honor contract resales or transfers. In some cases, they’re able to do this because the original timeshare contract has an anti-assignment clause that doesn’t allow the contract to belong to anybody but the original owners. If that’s the case, even if you paid a lot of money for the timeshare, you might be out of luck.
The best way to avoid these kinds of timeshare resale risks is to work with a team of experts, like those at Centerstone Group. Our transfer program has helped hundreds of people successfully take control of timeshare purchase contracts, and we can make sure that any sale or other transfer is done properly, in such a way that timeshare companies can’t object to.
What Hidden Fees Come With Secondhand Timeshares?
No matter how you obtain a used timeshare contract, there are timeshare resale risks that come about long after the ink has dried on the deal. These are the risks that any timeshare owner can tell you about — those that can put you in a bad financial situation for the rest of your life.
For example, if you buy a used timeshare, you’re also buying the obligation to pay thousands of dollars of annual maintenance fees to the developer. This obligation literally never ends, and even the American Resort Development Association estimates the average fee to be well over $1,000 per year.
Also, keep in mind that if your timeshare resort wants to make any improvements or repairs to the property, its management company will charge you additional special assessments as it sees fit.
Your timeshare may also come with obligations to pay fees to exchange programs like Interval International or RCI. The sheer profusion of fees you might be asked to pay underscores the point that you need to be careful before deciding to purchase anything on the timeshare resale market.
Before Braving the Timeshare Resale Risks, Consult With Centerstone Group
You might think that buying a resale timeshare is an easier process than buying directly from a developer. However, this idea presents severe and unnecessary timeshare resale risks that can be easily avoided with the involvement of the team from Centerstone Group.
We have decades of experience in the timeshare industry, and we know the ins and outs of timeshare contracts. We also understand when extra help is needed and work with realtors when necessary to ensure our clients get fair and legally sound transfers of resale timeshares.
Furthermore, we’re an accredited, A+-rated company with the Better Business Bureau, where we have a 4.77-out-of-5-star rating from our satisfied clients. If you’re considering purchasing or selling a timeshare on the secondary market, contact us today for a free consultation on how to do it the right way, with the least amount of stress and worry.
While you probably hear quite a bit about timeshare sales presentations, there are fewer stories about the timeshare resale market. This is because in most cases, there isn’t much of a secondary market for timeshares. Some people, though, are attracted to the idea of a vacation club or timeshare property but turned off by the prospect of a high-pressure sales pitch that lasts hours. For them, the idea of buying a previously owned timeshare is attractive. If this is something that interests you, it pays to educate yourself on timeshare resale risks.
Though it is possible to buy a timeshare ownership from a current owner, there are quite a few potential pitfalls as well as some costs that you’ll need to be aware of. In this article, we’ll take a look at the circumstances under which you can buy or receive a secondhand timeshare, what timeshare resorts have to say about it, and the fees you’ll need to pay that might not be obvious at first glance.
As the leading timeshare exit company in the world, Centerstone Group is an expert on timeshare exit procedures in a variety of contexts. Notably, this includes transfers and resales of existing units and vacation club memberships. Read on for a discussion and tips about the process and aftermath of buying a timeshare on the secondary market.
Is It Safe to Buy a Timeshare on the Resale Market?
Generally, yes, it’s safe to buy on the timeshare resale market. If shoppers want to become timeshare buyers at all, buying a “used timeshare” (as opposed to directly from a developer) is the better way to do it. However, you need to make sure that you’re knowledgeable about the proper processes for a transfer. It’s also critical to know exactly what you’re signing up for when you buy that used timeshare or vacation club membership. To avoid many of the worst timeshare resale risks, keep in mind the following three guidelines.
1. Make Sure the Sale or Transfer Is Legitimate
Timeshares offered online or through brokers on the real estate market can seem like bargains to potential buyers. Because the original prices paid by timeshare owners to developers are so inflated, resale prices can more accurately reflect the true value of these properties.
You may have browsed eBay or Craigslist and seen owners trying to sell timeshares for ridiculously low prices. Some timeshares are even being given away for free or $1. You might think, “How could I possibly go wrong with such a cheap purchase price?” However, buyers should beware of potential scams and legal problems that can come with offers like this.
One of the timeshare resale risks to watch out for is that the people trying to sell or give away timeshares on these websites may not actually have the power to give these units to you. Some timeshare agreements forbid owners from trying to sell or transfer their unit without the assent or participation of the developer. If that’s the case, all you could be buying for $1 is a complicated legal headache with a timeshare resort.
2. Make Sure You Know What You’re Buying
It’s easy for a reseller to advertise that they’re selling a “vacation property” or “their week at a timeshare,” but the devil is in the details. Modern timeshares often don’t use the model of a fixed-week timeshare at a physical piece of real estate. The seller could instead have a points-based membership with Marriott, Disney, or another vacation club.
In other words, if you don’t read the fine print carefully, you might think that you’re buying real estate but may actually end up with a bucket of points for use at a certain brand of resort. (Note that you may not even be legally qualified to use those points!) Purchasing a used timeshare, then, requires a fine eye for detail and contracts so that you can be sure that you’re not getting saddled with something you didn’t expect.
3. Avoid “Timeshare Resale Company” Scammers
Of the many red flags that you can find in the secondary market, so-called timeshare resale companies are among the worst. These are companies that generally prey upon timeshare owners and say they can sell their timeshares to new owners. They charge thousands of dollars in upfront fees, then disappear without having completed the sale.
These scams are currently being investigated and fought by law enforcement. An announcement from the Minnesota attorney general describes the risks, signs to watch for, and actions you can take against these scammers.
Can Resorts Refuse to Honor Resale Timeshare Contracts?
Sometimes, timeshare developers may not want to honor contract resales or transfers. In some cases, they’re able to do this because the original timeshare contract has an anti-assignment clause that doesn’t allow the contract to belong to anybody but the original owners. If that’s the case, even if you paid a lot of money for the timeshare, you might be out of luck.
The best way to avoid these kinds of timeshare resale risks is to work with a team of experts, like those at Centerstone Group. Our transfer program has helped hundreds of people successfully take control of timeshare purchase contracts, and we can make sure that any sale or other transfer is done properly, in such a way that timeshare companies can’t object to.
What Hidden Fees Come With Secondhand Timeshares?
No matter how you obtain a used timeshare contract, there are timeshare resale risks that come about long after the ink has dried on the deal. These are the risks that any timeshare owner can tell you about — those that can put you in a bad financial situation for the rest of your life.
For example, if you buy a used timeshare, you’re also buying the obligation to pay thousands of dollars of annual maintenance fees to the developer. This obligation literally never ends, and even the American Resort Development Association estimates the average fee to be well over $1,000 per year.
Also, keep in mind that if your timeshare resort wants to make any improvements or repairs to the property, its management company will charge you additional special assessments as it sees fit.
Your timeshare may also come with obligations to pay fees to exchange programs like Interval International or RCI. The sheer profusion of fees you might be asked to pay underscores the point that you need to be careful before deciding to purchase anything on the timeshare resale market.
Before Braving the Timeshare Resale Risks, Consult With Centerstone Group
You might think that buying a resale timeshare is an easier process than buying directly from a developer. However, this idea presents severe and unnecessary timeshare resale risks that can be easily avoided with the involvement of the team from Centerstone Group.
We have decades of experience in the timeshare industry, and we know the ins and outs of timeshare contracts. We also understand when extra help is needed and work with realtors when necessary to ensure our clients get fair and legally sound transfers of resale timeshares.
Furthermore, we’re an accredited, A+-rated company with the Better Business Bureau, where we have a 4.77-out-of-5-star rating from our satisfied clients. If you’re considering purchasing or selling a timeshare on the secondary market, contact us today for a free consultation on how to do it the right way, with the least amount of stress and worry.