Time-Share Resale Pitfalls Part 1

By
Real Estate Agent with Keller Williams Classic Group

Many of us have heard the spiel for purchasing a time-share. The "Sales People" show you around their Vacation Home Community only showing you the 3 units that are in the best of condition. Afterwards they take you through the Grand Clubhouse where they tout all the benefits of buying at their location. Later on you find yourself sitting with these trained closers as they promise you what seems like the deal of the century. Caught up in all the hype, you find yourself purchasing a week of time-share that seems to be the best opportunity that you have purchased in your life. You leave the office excited and proud that you were able to negotiate a price $1,000 below what they already told you was the deal of a lifetime.

Now, fast forward 10 years. You find that you only used the unit twice since you owned it. The yearly maintenance fees are double what you were originally told. You hate the location and because you bought in a slow time, no one will rent the unit when you don't use it. And now for the real kicker, when you decide you have had enough and want to sell you can't find a person on earth that would take it for free.

Im sure this all sounds too familiar for those people who bought into the time-share lifestyle expecting the world from their purchase. The reality is that time-share is not an investment per-say but an advance purchase on your vacation lodging. The time-share industry has used the "Real Estate" investment tactic for years and technically it is real estate but it is more like buying an automobile where throughout the years it depreciates in value. Now there are some time-share companies where the value does increase but those are rare.

For those who plan the annual family vacation at Walt Disney World in Orlando a time-share can make sense. It will guarantee that you always have a place to stay. But remember, owning a time-share is a lifestyle. It allows you the opportunity to always have a vacation location in place at a set time. For those who are well traveled, this is important especially if you want to be on the mountains of Vail over Christmas.

But there are the majority of people who bought into this dream only to find out the pitfalls of time-share. So before you sign on the dotted line in the fancy club house overlooking the pool and palm trees, ask yourself is it really worth the cost? Will I use this pre-paid vacation plan? Can I sell it if I don't like it? If you can't answer yes to at least 2 of these questions time-share may not be right for you.

Watch for part 2 to find out what options are out there if you need to sell your time-share unit.

Steve Glose

The Florida Living Team.com

 

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Rainmaker
684,022
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F
If you want to find out what your timeshare is really worth, just go to Ebay and see what similar units at the same resort are selling for.  Pennies on the dollar. 
Dec 23, 2007 06:20 PM #1
Rainer
4,798
Eldon Holliday
National Property Inspections - Olive Branch, MS
I recieved two time share units when my mother died so I didn't make the purchase but these things aren't even worth the fees and property taxes.  Let the buyer beware.
Dec 23, 2007 07:36 PM #2
Rainmaker
298,489
Heather the Realtor Orlando, Lake Mary
LemonTree Realty - Orlando, FL
First Time Home Buyers, Bank Owned Homes
I dont know a single time share that is truly worth it, especially in todays age. Honestly you could purchase a home make it a short term rental yourself and vacation for free, have your mortgage paid for by your renters and have a great asset in Orlando. 
Dec 25, 2007 09:32 PM #3
Rainer
83,563
Joanne Hanson
Coldwell Banker Colorado Rockies Real Estate - Frisco, CO
Summit County, Colorado Realtor
Steve, it is funny how many people own them and rave about them, but you couldn't give me one!  Once you add up what you spend on fees, plus all the membership fees to trade them, you could have a great vacation every year and still spend less!   If you have a place to send people to that is legit, I would love to know it, as I won't list them!
Dec 28, 2007 12:38 AM #4
Ambassador
893,850
Margaret Woda
Long & Foster Real Estate, Inc., Crofton, MD 21114 - Crofton, MD
Maryland Real Estate & Military Relocation
As a time-share owner in New Bern, N.C., I must agree with you - This has been a terrible investment for us!
Dec 29, 2007 08:18 PM #5
Rainmaker
282,564
Melanie Ross
Coldwell Banker Solano Pacific - Benicia, CA
Benicia CA & Vallejo CA Real Estate, 707-319-2828
It is going on 27 years we have owned a timeshare in Lake Tahoe.  It was built as a timeshare.  I can count on one hand the number of times I have stayed there.  It is very nice.  Just don't get up there and donot take the time to trade it!!  My father in law and husband use it at least once a year. 
Dec 29, 2007 08:33 PM #6
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Rainmaker
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Steve Glose

TRC, CIPS, 407-616-7286, Orlando Real Estate, Orlando Medical City
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