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5 Things You Wished You Knew Before You Bought A Timeshare

by Lisa Ann Schreier
written by Lisa Ann Schreier

We all know that the timeshare buying process is daunting, and it might seem like the salesperson is either the devil incarnate or your best friend- neither of which is true. Everyone has something to say about timeshare, but who should you listen to? We asked Lisa Ann Schreier a former timeshare salesperson and now the consumer advocate known as The Timeshare Crusader for her thoughts. Here are the 5 pieces of advice she thought were worth sharing.

  1. Understand all the costs involved. It is not just the purchase price, which averages more than $20,000 when buying from the developer. There’s the annual maintenance fees which rise over time, usage fees, reservation fees, exchange company membership fees and the occasional special assessments. In one notorious case, a developer assessed owners over $5,000 for water intrusion.
  2. Using your timeshare is not as easy as the salesperson makes it out to be. You’re not going to be able to pick up the phone or go online and book a winter vacation in Vail or Kauai two or three months out. There are rules that you need to fully understand in order to use your timeshare and it’s never as simple or easy as booking a hotel.
  3. It makes all the difference in the world if you own a fixed week, floating week or a point based timeshare.Each time has its pros and cons. For instance a point based system may offer more flexibility in usage, but the majority of them are not inflation proof so you might find yourself continually having to buy more to do what you want to do.|
  4. Timeshares are not investments, have extremely low resale value and many come with restrictions for anyone purchasing on the secondary market. If you owe on it, your chances of selling it are slim to none.
  5. Despite the proliferation of so-called exit companies, it’s nearly impossible to be released from your financial responsibilities of a timeshare once the legal rescission/cancellation period has lapsed. It’s not unusual for people to be scammed out of thousands of dollars and still owe on the timeshare.

Lisa Ann Schreier has been involved in the timeshare community since 1998. After cutting her teeth as a timeshare salesperson and manager at a number of Orlando area resorts, she grew increasingly frustrated with the antiquated marketing and high pressure sales techniques that were (and sadly still are) the norm in the industry.

Seeking to be a catalyst for positive change, she wrote Surviving A Timeshare Presentation…Confessions From The Sales Table and Timeshare Vacations For Dummies. In addition, she co-authored the definitive college level textbook on timeshare. She is a frequent contributor to major media outlets and a sought after speaker at consumer advocacy groups.

In addition to her articles at SeniorNews.com, she is on the Advisory Board of ConsumerAffairs.com where she ensures that content is unbiased, accurate and helpful for consumers as well serving as the lead timeshare advocate at Elliott.org and a featured blogger on RockStarFinance.com.

Her tell it like it is blog (https://thetimesharecrusader.blogspot.com) covering timeshare issues is a source of solid information and continues to alert consumers to the myriad of less than reputable companies and practices.

Twitter users can follow her at @LisaLooksAt
Questions? Looking for assistance? Email Lisa a lisaschreier617@gmail.com

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Quick Tips Before you Listen to a Timeshare Presentation
Timeshare

Quick Tips Before you Listen to a Timeshare Presentation

by Lisa Ann Schreier
written by Lisa Ann Schreier

If you’ve ever sat through a timeshare sales pitch, you know that they can be high pressure. The sales staff has been trained to do one thing and one thing only—-influence you to purchase on the spot. Because of that high pressure, these sales pitches can be laced with, ahem, some misrepresentations. Here are the most common things that are misrepresented at timeshare sales pitches:

Price Today vs Price Any Other Time

This is the one that is used the most, often in conjunction with ‘quoting’ some State Statute. If there is such a statute, such as in Florida, it has to do with whatever gifts you’re being bribed with to sit with the salesperson, not the price. Trust me, they’ll take your money tomorrow, next week or next month.

Resale Value And Your Ability To Resell

The truth of the matter is that the resale market is awash in timeshares that owners are willing to sell for $1,000 or less. Sales agents simply refuse to disclose that. In some cases, licensed brokers will refuse certain listings because the timeshare literally has NO resale value because of the draconian restrictions placed by the developer in secondary market purchases.

Maintenance Fee Relief Programs That Do Not Exist

There are many permutations of this misrepresentation. Suffice it to say you should not purchase additional timeshare under some bizarre plan that you’ll be able to pay off your fees with the points. Read that again. It makes no sense, does it?

The Value of Travel Awards

Again, there is a myriad of promised schemes using timeshare points and the ability to purchase certain travel rewards. Bottom line, buy timeshare only to use as timeshare, not for the promise of being able to use it for airline tickets, etc.

Stating A Lower Interest Rate Can Be Obtained From A Bank Or Credit Union

In the event you’re smart enough to balk at the ‘convenient’ 15%, 16% or 17% financing the resort will offer you (and you’d be stunned to find out how many people agree to those insane rates), some salespeople will tell you that you can get a personal loan. Wrong. I have yet to find a bank that will finance a timeshare. What are they going to do if you’re foreclosed on? There is however a reputable source for people with good credit history. Check out LightStream.com.

Ease Of Ability To Return To Your Home Resort

Unless you purchased a fixed week/fixed unit timeshare, highly doubtful, you’re going to have to make reservations to come back to your home resort. You’ll be battling other owners and owners who are exchanging into your resort for prime season. You better fully understand exactly when you need to make a reservation and what the process is before you purchase. Don’t rely on the salesperson, talk to other owners.

Ease Of Ability To Trade/Exchange

If you think coming back to your home resort takes some doing, it’s nothing compared to attempting to trade or exchange into another resort. In addition to the fee averaging over $200 (!) most owners find out too late that they need to make plans either 12-13 months out or less than 60 days out in order to get what they want. A week in Branson, Missouri is not going to get you Christmas Week in Hawaii.

Bottom line here is do not do anything in haste. If you’re looking for assistance in determining what’s true and what’s false, figuring out if a timeshare is for you, or like millions of people who already own and no longer want or use what they have, contact me at lisaschreier617@gmail.com.

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5 Things To Avoid In Timeshare Matters
Timeshare

5 Things To Avoid In Timeshare Matters

by Lisa Ann Schreier
written by Lisa Ann Schreier

If you are interested in purchasing a timeshare, here are 5 things to avoid: 5 Things To Avoid In Timeshare Matters

  1. Buying anything under pressure or duress. Timeshares can be great for some people, however since the majority of timeshare contracts are in perpetuity, they are not to be entered into on a whim, or under pressure at a sales pitch. If you must sit through a timeshare sales pitch in order to take advantage of a discounted vacation package; listen, ask questions, be polite but remember that whatever price they might dangle in front of your face will be available tomorrow, next week or next month. Have you ever heard of any company that will turn down your money?
  2. Buying any timeshare without fully understanding how it works. If you don’t understand the difference between fixed week, floating week and point based timeshare and don’t have a clear understanding of how tracing/exchanging works, you have no business buying a timeshare. Don’t rely on what the salesperson says. Do your homework or enlist the help of an independent advisor.
  3. If you own a timeshare, do not engage with any person or entity that initiates contact. I’ve yet to find one cold caller that does what they say they will. If you’re ever in doubt, ask yourself if you’d proceed if someone called you out of the blue about your car, your computer or your house. The answer should be no.
  4. Not understanding or factoring in all of the costs associated with owning a timeshare. Owning a timeshare is not just the purchase price, which if you’re buying from the developer averages around $22,000. There are the annual maintenance fees which are close to $1,000 on the average. If you want to trade or exchange your timeshare there’s a fee for that as well as a membership fee to the company that does the exchange. Some resorts levy a special assessment. You may be asked to pay closing costs when you purchase and many resorts charge an administrative fee. Many fees are negotiable. Most are not.
  5. Falling for one of the four ‘red flag words.’ Free, perfect, always and never. Free and perfect simply do not exist and always and never are exceedingly long periods of time.

If you’d like to obtain a copy of ‘19 Questions You Must Ask Before Buying A Timeshare’ and get the 9 Bonus Questions When You’re Buying On The Resale Market, drop me an email at lisaschreier617@gmail.com.
If you have a timeshare that you aren’t using, no longer want, can’t afford or feel you were mislead into purchasing, there may be one or more viable solutions out there. I offer a flat consultant rate of $250 which provides you with solid information depending on if you’re looking to for resolution, relinquishment, refund, foreclosure or resale. I’m not an attorney and I do not offer legal advice. Every situation is different, but if you know what to say to whom, you have a much better chance of a successful outcome. Remember that the timeshare industry has had 40+ years to hone their methods and their contracts. There are no easy solutions for anyone looking to get out, but it is possible in some circumstances. Knowledge is power.
Guide to Purchasing Timshares

5 Things To Avoid In Timeshare Matters

5 Things To Avoid In Timeshare Matters 5 Things To Avoid In Timeshare Matters 5 Things To Avoid In Timeshare Matters 5 Things To Avoid In Timeshare Matters 5 Things To Avoid In Timeshare Matters5 Things To Avoid In Timeshare Matters

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Timeshare Expert Answers Owner Questions
Timeshare

Timeshare Expert Answers Owner Questions

by Lisa Ann Schreier
written by Lisa Ann Schreier

Lisa Ann Schreier is a leading timeshare expert who is helping Senior.com members make wise decisions about their timeshare investments. Here are some of the latest important questions submitted: Timeshare Expert Answers Owner Questions

1. Recently, Marriott and Starwood merged. Will this affect my timeshare ownership and usage?

These types of mergers are becoming more and more the norm. Individual ownership should not change all that much. The manner in which your timeshares are used, i.e. reservation systems, ability to use loyalty points across different platforms (hotel, timeshares, travel, etc.) and ability to trade/exchange MAY significantly change. More than ever you must pay attention to all communication that the resort issues and if possible, attend your annual HOA meeting(s). If you are unable to do so, request a full and detailed recap of the meeting.

2. I’ve been looking to sell my timeshare that I’ve owned for 20 years, but have been disheartened to find out that they are practically worthless. Why is this the case and how can I maximize my purchase?

In most cases, 50% or more of the price that you paid when you purchased your timeshare from the developer were attributed to sales and marketing costs. Factor in the glut of timeshare on the resale market and the increasing number of developers that are placing usage restrictions on secondary market purchases and it can look pretty glum for many owners. If you’ve used your timeshare for 20 years and enjoyed great vacations and can sell it for even a small fraction of what you paid for it, you’re coming out ahead…remember that this is NOT an investment. If you just can’t bring yourself to sell your timeshare for $1,000, consider renting it out. This way you can make some money while still holding on to your timeshare. If you are set on getting out of your timeshare, here are some tips:

  1. Use a licensed timeshare broker who will not charge an upfront fee
  2. In some cases, the “value’ of the timeshare is so low, that a broker will not accept the listing. In that case, look into the Alternative Dispute Resolution Service which will be rolled out in January 2017 from the National Timeshare Owners Association.

3. When multiple siblings inherit a timeshare what are the pitfalls of managing fees, ownership sharing, scheduling etc. What can be put in the estate planning to make it better?

Inheriting a timeshare can be difficult for everyone involved, particularly if there are multiple siblings. Some siblings may not want the timeshare; so if possible, find out who does and who does not. The parent or grandparent leaving the timeshare must first clearly understand the details of the timeshare; i.e. weeks, points, reservations, fees, etc. The easiest way to “split” a timeshare is to stipulate that each heir gets the use and the responsibility of the timeshare on alternate years.

4. What do you see is the future of timeshare ownership? Point systems? Ownership weeks?

The majority of timeshares being sold today are point based products. But, that doesn’t mean that the week-based system is in any danger of being phased out. Many of the point-based systems have absolutely no real estate interest, which begs the question “do I really own anything?” Smart developers will begin to offer term-products, so that owners are not saddled with an ‘in-perpetuity’ product. However, this is no longer timeshare in my opinion. More than ever, it is imperative to understand what you own or what you are thinking of purchasing. A 5 year vacation club is vastly different than a deeded timeshare. Both have pros and cons.

Timeshare Expert Answers Owner Questions

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