Take Control With These 4 Questions

Everyday, hundreds of thousands of consumers just like you, sit down across from a timeshare salesperson and give away most of their power just because they don’t understand the psychology of sales. 

I spent 5 years in timeshare sales and sales management and the first thing we were taught is this:

The person asking the questions is in charge. 

Think about it. If you go to the doctor, they ask the questions and you usually quietly acquiesce. But if you go to a big box store looking for a television, you ask the questions and you’re in control of the purchasing decision. 

The timeshare sales paradigm has remained largely unchanged for 40+ years. It’s built upon greed, guilt and control. Greed because you took the bait in the form of theme park tickets, dinner shows or good old fashioned cash. Guilt because you mistakingly believe you owe them something for taking the bribe. Control because the salesperson asks the majority of the questions so they can tailor the pitch and the offer to your needs. 

It’s quite easy to reverse this paradigm. Ask the questions. Here are 4 questions you need to ask your salesperson before the pitch even begins:

1) Are you licensed? Ideally you want the answer to be YES. At the very least, your salesperson will be taken aback by this question. Want more control?  Ask to be paired with one who is licensed. Yes, you can do this. 

2) Can I record your entire sales presentation? Again, ideally you want the answer to be YES. If it’s NO, continue asking questions. Why can’t you record it?  Are you hiding something?  The idea here is to put the salesperson on notice that same old, same old will not work. 

3) How long will this take?Remember that you are only obligated to stay for the amount of time listed on the “invitation” or whatever you signed when you agreed to listen. If the salesperson tells you something different, or waffles on the answer, do not agree to even begin. Get this clarified and let them know you’re setting an alarm for that exact time. Again, yes you can do this. 

4) Are you going to send in another salesperson or a manager at any point?  When I was a salesperson I never used a manager or anyone else to finish my sales pitch. In the business it’s called “going front to back.”  Why would you want to spend 90 minutes at minimum with someone who isn’t qualified or authorized to finish things up?

None of this is meant to give you carte blanche to be rude to anyone, lest you misinterpret my point. The point is that you have the power to take control of the sales pitch with a few carefully thought out questions. 

So are you going to take control or cry foul after buying something you don’t understand after a 5 hour sales pitch?  It really is your choice. 

Where Do You Get Your Timeshare Information From?

Where do you get your information from?  

Remember that ANYONE can start a social media or blogging site. ANYONE.  

Here’s the informational heading for a blog that I recently found:

Welcome to my blog which offers growing exposure for your travel needs. Some of the followers include Actors, Actresses, Authors, Editors, Dr.'s and Realtors and Travel Lodges, Bed and Breakfasts, Hotel, Motel, Inns, Campsites, and more. 

Does this sound like someone you’d feel comfortable with getting any advice, much less timeshare advice from?

She puts this at the top of her blog:

Buy Timeshare, Rent Timeshare, Sell Timeshare,Timeshare Deed Trade Ins, Timeshare Mortgage Cancellations, Timeshare Giveaways, Campground Memberships, Travel Club Memberships.

Her last “post”, which was nothing more than a listings was this gem:

Westgate Grand Villa Townouse 4 bedroom 4 bathroom Lock out unit Bldg# 5600 & 5700 Annual Use Sale Price: $39,999

What’s my point?  My point is that you need to be selective in where you get any information from, including timeshare information. I include my own blog in this. I’m not THE EXPERT and I don’t pretend to be.  I write what I know and when I’m wrong, I’ll admit it. 

More importantly it’s been my experience in being involved in the timeshare industry that anyone who buys, sells, rents, or promises to get you out of a timeshare is not the best place to get unbiased information just as the timeshare salesperson at the resort is not the person you want to rely on for unbiased information. 

Sadly, most experts aren’t. Don’t fall into their traps. 

You Want Timeshare Change? Here’s How

After reading yet another sob story from a consumer who said among other things:  

>he was kept at his sales pitch for 5 hours, 

>he was under the impression that he was buying one thing when it turns out he was buying something different,

>the monthly payments increased and maintenance fees magically appeared in between the sales table and the closing office

I’m again floored.  

He rant started this way:  I just left Florida recently and of course to get my free gift went to the diamond resort presentation that was supposed to last 120 min and lasted 5 hours at mystic dunes resort in Orlando...

I swore I was not going to comment on these type of posts any longer, but here’s what I said:

I am a long time consumer advocate focused on timeshare issues. I do not condone any misrepresentation or lying by any developer’s employees or agents. 

Having said that, when will people understand that there is no such thing as a “free gift”?  When will people understand that when you agree to the sales pitch in exchange for your “free gift” you are only obligated to stay the length of time that’s in writing?  Yes, it’s in writing because it’s the law. 

The system that is in place is in place because it’s working for the developers. Once consumers stop accepting the status quo and the “free gifts”, the system will be changed.

This Isn’t A Property Brothers Show People

I know I’m The Timeshare Crusader. I know I’m a passionate advocate for consumers in all things timeshare. I know I can not tolerate lying by timeshare sales staff. I know. I know. I know. 

But I also can’t tolerate consumers abdicating their responsibility and just making stupid choices no matter how clever, masterful or deceitful the sales people are. 

This issue was recently brought to my attention. I have no doubt that the sales staff lied. But at a certain point you have to wonder if the consumers were on some nifty mind altering drugs to believe this stuff. 

Owner indicated that they wanted to take advantage of the developers’s voluntary surrender program, which they were eligible to do since the timeshare was paid off. All they had to do was fill out the paperwork and pay $1,000 to the developer. Instead, they willingly handed over $12,000 because they were told that in order to take advantage of this voluntary surrender program, they would have to purchase $12,000 in additional timeshare points.

Now think about this for a minute. They weren’t looking to sell back the timeshare, they were going to have to pay $1,000 and then voluntarily surrender their ownership. This isn’t the case where they owned a house built in the 1970s and The Property Brothers convinced them that they should spend $40,000 on upgrades so that they’ll be able to sell the house for top dollar. 

They wanted to give back their timeshare because they didn’t use it any longer. Instead, they bought $12,000 MORE because the salesperson said it was the only way to do so. 

Another play on this came in last week. A couple was told that they had to upgrade to the highest point level this developer offered in order to take advantage of the voluntary surrender program. The same voluntary surrender program that is clearly outlined on the webpage when you log in as an owner. 

The couple is now both crying and crying foul to anyone who’ll listen as they can’t afford the additional timeshare that they purchased and are facing foreclosure. 

Don’t misunderstand me for a minute; these sales agents need to be thrown out and if I had my say, financially punished. This is deplorable. But in my opinion, the consumer bears some responsibility for this. The larger question is this:  What is it about timeshare matters that opens the door for so much shenanigans?  People are getting ripped off at all stages, from being mislead into thinking its only a 90 minute presentation that turns into 4 hours, to not understanding what they are buying, to being coerced into buying more in order to accomplish what they want to do on vacation and finally to being fleeced when it comes time that they want out. 

I don’t pretend to have all the answers. I bring up the questions. Let’s hope the industry is fixable. 

An Open Letter to the Timeshare Industry

Dear bigwigs and not so bigwigs, I hope that at least one of you answers this letter, even anonymously. 

Here’s the question:  Why do timeshares in the secondary market have such low value compared with the original purchase price?

Let us assume that Joe and Mary purchase one of your timeshares for $20,000. They use it annually and pay all the maintenance fees, even when you increase them. 10 years go by and they don’t want it any longer. They are disheartened to find out that similar timeshares have only managed to sell for $1,500.  

Joe and Mary will now do one of three things; a) they’ll fall prey to a scammer who will promise that they can sell it for $20,000 because its real estate, for a $6,000 upfront fee, b) stop paying the annual fees and be faced with a foreclosure and everything that goes along with it when you start legal proceedings or c) end up selling the timeshare for only $1,500. All three of these options will have the effect of negating the positive experiences Joe and Mary have had vacationing and you can bet that they will not be recommending timeshare to anyone. 

You, on the other hand could have offered to buy back Joe and Mary’s timeshare for $15,000 (actually you could buy it back for $20,000, but I’m feeling generous today) and turn around and sell it the following day for $30,000 as that is what you’re charging now. There has been no depreciation on the timeshare because Joe and Mary faithfully paid what you billed them every year and you maintained the unit and the resort...you did, didn’t you?

Joe and Mary will not fall prey to any scammers now, because there’s no need for them to even exist. Joe and Mary feel good about their purchase and their years of vacationing at timeshare resorts and are likely to recommend this way if vacationing to their friends and family. 

Why don’t you do this???

The Truth About Timeshare Exit Companies

As you probably know, there’s been a lot of talk lately about so-called timeshare exit companies. Major timeshare developers are filing lawsuits left and right against these companies as well as licensed law firms. Heck, I’ve even been interviewed by the CBS affiliate in Charlotte about these companies. https://www.wbtv.com/video/2019/05/13/timeshare-problems/

Timeshare developers, ARDA and ARDA-ROC have been putting out press releases about how their goal is to protect consumers from the ‘evils’ of any person, company, organization or firm that claims to assist beleaguered owners. I’ll leave the discussion about what their actual goal is for another post.  

At a recent legislative workshop in Florida at least two individuals from the industry, Ken McKelvey of ARDA-ROC and Jason Gamel (who was with Wyndham at the time) of ARDA made impassioned speeches about how timeshare developers have programs to take back timeshares from owners who want out. 

But that really isn’t the case, is it?  If you’re a timeshare owner who wants out for whatever reason, your first course of action is not going to Google ‘timeshare exit’, is it?  No. It goes something like this:

Step 1-Contact the resort where you purchased your timeshare. Chances are pretty darn good that you’ll be shuffled from department to department because there’s not really any dedicated staff at the resort to deal with these situations. You’ll either be told that you signed a contract that can’t be broken, given a number to someone at corporate or worse, invited to an “information session” where you can learn new ways to use your timeshare. 

Step 2-Contact the developer where you’ll play yet another round of telephone transfer to no avail. 

Step 3-Try to sell your timeshare. This is where you’ll find out one of two things. First, if it’s paid in full it’s only worth a tiny fraction of what you originally paid and the secondary market is awash with listings, many of them for under $100. More often than not, it’s not paid in full and then you discover that you can’t sell it because no one is going to buy it when there’s a balance owed. 

At this point, weeks or months have gone by and you are in the same situation; you want out and out quickly before another maintenance bill hits. 

Only after exhausting these options to no avail will you go online in hopes of finding an exit company. 

Now, I’d be remiss if I didn’t mention that some developers have instituted some programs where they will take back their own timeshare. For a fee. If it’s paid in full. At their own discretion. If they decide to. 

It’s pretty easy to see why there’s been such an increase in the number of organizations that promise to get an owner “out” of their obligation.

Are people within the industry truly that blind to what is going on?  They don’t really believe their own spin, do they?  The ONLY reason for the increasing number of organizations that are advertising their methods to get someone out of a timeshare is because the industry won’t let owners out. 

This Is What You Need To Know About Timeshare Charges

When you purchase a timeshare, either on the primary or the secondary market, there are a number of charges that you will encounter aside from the purchase price.  

Read this to understand the basic, not so basic and red flag charges you may encounter. 

Standard Timeshare Fees

Maintenance Fees

Regular maintenance fees cover normal wear and tear on the timeshare units and common areas, such as the pool, the clubhouse and the grounds.  Most resorts have a timetable for replacing items such as televisions, bedding, kitchen appliances, etc. This timetable and more information on annual fees can usually be found in the Public Offering Statement (POS).

Real Estate Taxes

If a timeshare is in fact real estate-based, there are taxes to be paid, similar to a home or condo.  Some resorts combine the annual maintenance fee and the real estate taxes into one payment, but it is a good idea to get the breakdown, as the real estate tax you pay on your timeshare may be tax deductible.

Special Assessments

While maintenance fees are regularly occurring, special assessments are by their nature “special” or assessed on a non-regular basis.  Special assessments are levied to cover costs over and above normal wear and tear and replacement of items.  A typical example of when a special assessment is needed and what it covers is hurricane damage.

Exchange Company Membership/Subscriber Fees

The primary exchange companies, RCI and Interval International, charge an annual membership fee, which you need to pay in order to take advantage of any trades/exchanges.  Some of the other exchange companies do not charge any annual fee.  

Exchange/Trade/Usage Fees

In addition to the exchange company membership fee, there are exchange or usage fees charged in order to use your timeshare.  Exchange/usage fees vary depending on if the exchange is domestic or international; made on the phone or online, or if the exchange is internal or external

Charges You May be Asked to Pay

With the exception of the “Administration Fee” which I do not like at all, these fees must be factored into the overall cost of purchasing/owing. Nearly all of them are negotiable.  It pays to ask.

Title Transfer Fee

Guest Certificate from Exchange Company

Wi-Fi

Administrative Charges

Cleaning

Gym

Pool Towel

$300 Marriott New Member Education Fee (covers usage and benefits)

Questions to Ask Before Purchase

Who is in charge of collection of the fees and when will they be assessed?

Who is the resort’s management company?

Who serves on the resort’s HOA board?

How much have the fees increased over the past five years?

Is there a cap to how much these fees can be raised annually?

If you don’t get full answers to these questions and are shown the answers in writing, not merely on a piece of paper, do not proceed with the purchase. This isn’t the only timeshare fir sale. You deserve better.