Advance Fee Timeshare Resale Scam

� They sell timeshares, don't they? �Unfortunately NO they do not! �Who am I talking about? The numerous companies that operate in the murky world of Timeshare Resales.�You would think that by the very�name of their industry "Timeshare Resales" that they would at least have some success selling timeshares.�However, as�many a timeshare owner has found�these companies only excel at�selling a worthless advertising package that costs between $500 to $1000 to timeshare owners who�are desperate�to sell their unit before the next yearly maintenance fee is due.

�� These "Resale" companies are staffed with well trained and well paid sales reps who know exactly which hot buttons to hit to motivate the timeshare owner to purchase their resale package. While many timeshare owners are quite happy with timeshares and enjoy them a great deal there are many owners, for various reasons, who are looking to sell. Usually these owners aren't not able to use their time anymore and are tired of paying the yearly maintenance fees which can run from $500 or more a year. The "Resale" sales reps know this and prey on this desperation of the timeshare owner.

� How do these "Resale" sales reps make their sales? There are a few tried and true tactics that seem to work much too often. One way is the rep will tell the timeshare owner "we are having a showcase this weekend and we really need your resort in our inventory. We've sold out of (fill in any resort name here) so if we can get your listed now we should be able to sell it this weekend". After trying to close the owner at $999 for their resale package they will go to a drop close if they aren't having success. At this point they will either put you on hold to supposedly go talk to their "Inventory Manager" or they will get the sales rep next to them to come on the line as the "Inventory Manager". Either way the purpose is to give the drop close credibility. They will tell the timeshare owner "I've spoken to my Inventory Manager and we normally don't do this but since we are sure we can get your unit (points) sold this weekend we are willing to drop the price to $799 just for tonight so we can get your unit in the system". Their buddy next to them will say the same thing basically but thier job is to come across as the authority figure, the "Inventory Manager" in this case. Just keep in mind that their buddy is just as motivated to make the sell because if they do they will split the commission with the original sales rep.

� Another tactic is to over inflate the value of the timeshare and guarantee the sale of the unit.�They ask how much the owner paid for the unit, sing the praises of the unit and then tell the owner that they have sold several of these units and that�they more than likely will receive more than what�they paid for it. A point to remember, unlike what the resort sales person said when the timeshare owner purchased their unit, timeshares are not good investments. The truth is that since timeshares are so loaded with built in commissions for the sales reps, sales managers and sales office that a timeshare will never be sold for any price near what they were purchased for to begin with. If a timeshare owner is one of the few lucky enough to sell their unit (about 5%-10% of timeshares are actually resold) they normally will sell it for about 10% of what they paid for it. Many timeshare owners will even sell them for $1 just so they can be rid of the yearly maintenance fees.
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These "Resale" companies will also guarantee the unit will be sold in 90 days. When asked what happens if it doesn't sell in that time the sales rep will play up "if for some reason it doesn't sell in 90 days we will continue to advertise it at our expense, however, normally they do sell before the 90 days are up". So what does "at our expense" mean? Absolutely nothing! Once the�"Resale" package has been sold to a timeshare owner the "Resale" company will place a small, fairly generic ad on their website, a website that generates very little traffic and are usually hard to navigate if anyone does happen across them. The "Resale" company has already taken the timeshare owner for�$500-$1000 but it doesn't cost them a thing to keep the timeshare owner's ad on their website indefinitely. This is how they skirt the law. They may�promise the timeshare owner the moon when making the sell but when it comes to their contract is limits their�responsibility and indicates that if the unit doesn't sell in 90 days their only responsibility is to continue to advertise it. So in essence, for $1000 a timeshare owner gets a small, tiny classified ad�on a website that generates little traffic and is filled with over priced timeshare units due to the "Resale" sales reps�telling a timeshare owner they can sell their unit for more than it's worth. A formula for success, I think not.

� What can a timeshare owner do who needs to sell? The first thing to remember the best person to sell their unit is themselves. If they feel a little uneasy about handling the sale themselves there are licensed real estate agents who specialize in timeshare resale�s and they do not charge�advance fees. They make a commission after the sale so they are motivated to actually sell the unit unlike the "Resale" companies. There are also websites designed�as a meeting place for timeshare owners to sell or trade their units as well as�providing�tools and education�relating to�timeshares. Good starting places are www.redweek.com and www.tug2.net. Anyone looking to sell a timeshare can place an ad on these sites for around $10 to $15 in most cases, a far cry from the "Resale" companies. Also, these also generate a huge volume of people looking for timeshares due to their reputations in the industry.
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How do I know so much about Advance Fee Timeshare Companies? For a very brief time last year I opened a marketing room for a fairly successful "Resale" company. Not the best business decision I've ever made. The money is definately there to be made (the average "resale" sales rep makes $50,000 yr. and the very best make�over�$75,000 yr.) however, after operating the office for less than a week and�hearing customer after customer complain about how they were burned by a Timeshare Resale Company (not once did I hear any owner tell us what a great experience they had with one of those companies) I was completely disgusted with the misleading sales tactics needed to be successful. I was pretty upset�allowing myself to ever get involved with this industry. I closed my office and the only positive thing I can say about the whole experience is we never sent a sale.
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Since then�I have done my best to expose the Advance Fee Timeshare Resale Scam through every possible way I can find.
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So remember, never, ever, pay any company money in advance to sell your timeshare. Any company that wants you do pay before it is sold is a SCAM!!

Posted by Gary Manning, Tenn. 8-8-07