Timeshare Lies – Sales Rep Deceptions:
If timeshare salesman’s is talking…he is lying
“You can always just sell it”
There are thousands of timeshares listed online in the resale market for 1$ that still are not selling. When you think of a timeshare as 1 week out of the year there are 51 nearly identical contracts for that timeshare you may be trying to sell times a huge number of units in each resort. Unless you have a particularly desirable week, or location there may be 51 people in your exact same situation trying to sell.
“You are paying into your future”
A timeshare is not really an ‘investment’ at all. They may try to convince you on the idea that it is like buying real property, but most timeshare contracts are not actually a deed for property but a ‘right to use’ contract with a
Sham Deed that looks real. They simply allow you to book some rooms at limited times and limited locations. This makes the market value to a bank zero (0.00$), as there is no security there is no property to evaluate. On top of that these ‘right to use’ contracts require maintenance and/or club fees to keep being able to use them.
“It will only go up in value from today”
Many people are lured into the idea that they can get out whenever, because timeshares are ‘worth a lot’. The reality is that timeshares have a negative value. The secondary resale market is riddled with desperate people trying to unload unwanted timeshares for $1.00 just to get out of the fees they are paying for it. The problem is that even with listings for $1.00 nobody seems to want them because they are not worth the constant fees associated with ownership.
“It will be an asset for your children”
Unfortunately, most timeshares have a “Successor” liability clause. Meaning that your progeny are going to be on the hook for your outstanding balance when it passes to them and the children will be required to keep paying your ever-increasing uncapped fees. Rather than left with the promised ‘asset’ they will more often be left with a perpetual financial liability.
“You will save so much money on yearly vacations”
As seen in major resort litigations of our law firm, ‘timeshare owners’ end up paying 400% to 1000% (4x to 10x) of the actual rental price. If you were to just go on the open market online and book your same one week stay it would be a fourth the price or less of your yearly fees. They might tell you that you are getting these vacation weeks at a bargain, but if you add in your mortgage payments plus your yearly maintenance fees all together as the cost of your annual trip, it adds up quickly.
“You can rent it out to cover the cost”
Often upgrades are sold under the idea that a more desirable package will be easier to rent out when you are not using it and that renting it may even be able to pay your annual fees for you. Unfortunately attempting to rent a unit out is usually at the discretion of the resort, not the timeshare owner, and there may be additional fees to book, whether you find a renter or not.
“It will give you better booking/exclusivity/perks”
It is common to hear when purchasing that you will get the best deals that the ‘public’ cannot get. This is typically false, and the opposite is often true: where the public booker can get the waterfront room that is seemingly always ‘unavailable’ to an inquiring owner.
“You can book, anywhere, anytime, worldwide”
They say that upgrades will give you better option when booking, or that you will receive more perks while you are there. The reality is they use the same booking companies whether you are a premium or standard member. They are set up to make it as difficult as possible to get people into rooms, because the less you can book the more money they can get out of you when you come back to the resort for an ‘upgrade’. Unless you are being booked at the resort chain’s hotels in hopes of trapping you in an “owners meeting” for an upgrade, the booking process is pretty much designed to give you sub-par accommodations.