Q: I have placed our timeshare on the market; there appears to be fraud activity on the Internet for condos. Do you have advice for consideration when selling your timeshare?
A: In a tough economy, struggling families look for ways to reduce their expenses. One popular option is to unload any timeshares so they can recoup their investment and stop paying maintenance fees. Many businesses specialize in reselling timeshares, but Better Business Bureau warns that some companies are using deceptive sales tactics to defraud thousands from already cash-strapped timeshare owners.
While timeshare owners are looking to unload the financial burden, unfortunately, not as many vacationers are buying. Timeshare sales dropped 40 percent in 2009, according to the American Resort Development Association. As a result, timeshare owners who are eager to sell are increasingly susceptible to offers that are too good to be true.
Companies like Resorts Condo Management, Creative Vacation Solutions, Platinum Property Exchange and Premier Timeshare Solutions have earned "F" ratings with BBB for convincing timeshare owners that they already have interested buyers but require thousands of dollars in upfront fees - such as closing costs - from the sellers and ultimately fail to complete the promised sale.
Some tips:
Use a business you can trust - Make sure the timeshare reseller you use is a BBB accredited business or at the very least has a good rating with BBB.
Confirm licensing requirements - Some timeshare resellers will use fake addresses or post office boxes to mislead timeshare owners. Ask if the company's salespeople are licensed to sell real estate where your timeshare is located. If so, verify this with the state licensing board.
Get the facts on the figures - Find out if the business charges a commission. Dois it handle the entire closing and provide escrow services? Does it charge an up-front listing or advertising fee? What does it cover and is it refundable? Be wary of upfront fees.
Don't fall for the hard sell or an offer that sounds too good to be true - Ask the salesperson to send you written materials.
Jim Winsett is president and CEO of the local Better Business Bureau.