Timeshare, also known as vacation ownership began more than 45 years ago in the French Alps with the idea that one had the ability to exchange his/her vacation accommodations with someone else. Since many people enjoy vacationing, but cannot afford second homes, third homes and more the idea of owning a portion
of a property grew until it became its own industry – timeshare.
The idea that you can own the portion of something for the amount you use it was a great one for a large majority of the population since upkeep, maintenance, fees, taxes, etc for owning an entire property would be well beyond most people’s means.
When timeshare opened up the world to people all those years ago it took off pretty quickly. Each year it continues to expand increasing the locations around the globe that vacation owners can visit.
Ever heard of Timeshare “Torture” Tours and viewed the signs for free tickets, cruises and more? Here’s the story behind them.
As with buying anything (especially real estate!) it is typically a wise decision to see what you are purchasing before you purchase it. So, tours of timeshare properties make sense. In order to unload a large amount of inventory, developers have to really draw attention to themselves
and their properties. Over time they have learned that the best way to do this in vacation destinations is to draw people in with discounts on their current vacation such as free attraction tickets.
They became known as torture tours because they can be quite lengthy and are high pressure to get people to buy. These tours are one of the main differences between timeshare retail (developer) sales and timeshare resales. While resellers will explain the benefits and take you on a tour of the property they are not under immense pressure to sell huge amounts of available inventory so it is typically a more pleasant experience.
We encourage people to take a tour if it is offered to them. We encourage this because by taking the tour you receive valuable information about the area and the timeshare industry and you’ll also actually get that gift that drew you in from the start. The tour doesn’t obligate you to purchase anything, it is just the resort’s most effective way to advertise their product.
Just remember while you are on the tour that the pricing you will receive to purchase a unit is marked up anywhere from 44% to 50% to cover the cost of marketing and giving out all those free tickets and cruises. They may even drop the price for you while you are there as a “Today Only” sale to get you to purchase on the spot. Regardless you will be paying hundreds to thousands more than the ownership is actually worth.
So feel free to take the tour then visit a reseller to save big. No matter if you purchase it from a retailer or a reseller, such as Defender Realty, you are still receiving a deed, points and right of ownership.
When you begin to consider committing to vacation ownership and buying it’s best to weigh your purchase options.
The first option is from a developer, but resort development is expensive, and developers pay for those costs by selling high volumes of units; therefore purchasing a brand new timeshare means you are helping to pay for all the costs associated with developing the property.
The second option is purchasing from a reseller. Timeshare units become available for resale purchase when either the resort associations or individual owners decide to sell their unit. Generally there is a 50% to 70% savings compared to purchasing retail from a developer. In some cases units are foreclosed upon by failure to pay yearly maintenance fees and you can get an even larger savings.
Once you find a timeshare unit you wish to own the actual purchase is very simple. To being with an earnest money deposit is typically required to take the week off the market. This transaction can be completed over the telephone or in person. When purchasing through Defender Realty checks are made payable to Defender Realty Inc, Estate Escrow Account and will be held in escrow until final closing.
Closings typically take place within 45 days from the transaction date. Final closing papers will be sent to the purchaser and sender via mail, if not done in person. The deed will be recorded in the appropriate county and state where the property is located.
Once your deed is recorded you are open to join the exchange company of your choice. Memberships in an exchange company enable you to receive a travel catalog, supplements, discounts on travel, bonus weeks and getaways.
Once you own a timeshare if you wish to sell it you absolutely can.
Many companies handle resales incorrectly which is one of the biggest reasons why timeshare has gotten a negative reputation. To every legitimate, honest resale company there are 10 bad companies acting as resale companies.
How to Detect a Legitimate Resale Company
The first step to selling your timeshare will be to locate a legitimate timeshare reseller. To begin your search you should never, ever pay any kind of upfront appraisal or advertising fee. In most situations where you pay upfront the reseller is never heard from once they receive their money. Most legitimate timeshare resellers will charge a commission once the week or points are sold. Earning “success” in reselling timeshare is a status earned by selling weeks or points, not just listing them. Many companies will just list them, take their money and walk away. At Defender Realty we give you the comprehensive marketing program you deserve.
Once You Decide to Sell
The steps to selling a timeshare once you decide on a reseller is a pretty streamlined process. It will be listed, marketed, once a buyer is found it will go through the closing process and voila you have sold your timeshare and that’s when your reseller should get their fee, not the other way around.