BBB and FTC Offer New Advice to Timeshare Sellers
Last week, the Better Business Bureau began an investigation into the legitimacy of an Iowa-based “vacation ownership closing company” going by the name of Wade Capital Management.
According to iowa.bbb.org, “the company purports to be located at 668 19th Street in Des Moines, Iowa; however, mail sent to this address has been returned as undeliverable. The address is a 7 unit apartment building. The owner of the building states that there is no business known as Wade Capital Management operating from such location.”
Unfortunately, this story sounds all too familiar. In addition to fake resale companies and upfront-fee agencies, phony closing or escrow companies are just another way that timeshare sellers can get scammed. Looking to sell your timeshare? We can’t say it enough – do your research! Want a crash course?
The BBB and the FTC offer the following advice for those wishing to sell their timeshare:
- Don’t agree to anything on the phone or online until you’ve had a chance to check out the reseller. Contact the BBB and the state Attorney General where the reseller is located.
- Ask the salesperson for all information in writing.
- Ask if the reseller’s agents are licensed to sell real estate where your timeshare is located. If so, verify it with the state Real Estate Commission. Deal only with licensed real estate brokers and agents, and ask for references from satisfied clients.
- Ask about fees and timing. It’s preferable to do business with a reseller that takes its fee after the timeshare is sold. If you must pay a fee in advance, ask about refunds. Get refund policies and promises in writing.
- Don’t assume you’ll recoup your purchase price for your timeshare, especially if you’ve owned it for less than five years and the location is less than well-known.
If you have any questions about selling your timeshare, please feel free to contact us. Timeshare Broker Sales is a licensed timeshare broker and BBB accredited business.
SOURCE: BBB Warns Consumers of Phony Timeshare Escrow Service: 04/04/12. Retrieved from: http://iowa.bbb.org/article/BBB-Warns-Consumers-of-Phony-Timeshare-Escrow-Service-33650
Three Tips to Sell Your Timeshare TODAY
Selling a timeshare can be a tricky business; and there is all sorts of conflicting advice about how to sell a timeshare on the internet. So we thought we’d help. We put together our top three tips for selling your timeshare:
- Always Pay an upfront fee to sell your timeshare – it’s important to get the ball rolling. Plus, paying an upfront fee is a great way to ensure that a company already has your money; so you know they’ll do the right thing and work quickly to sell your timeshare.
- Don’t bother checking licensing or BBB accreditation – these things can waste precious selling time. If they have a website, or their agents sounded professional on the phone, there’s no reason to worry about their reputability.
- Don’t waste time with contracts – In today’s digital age, nobody uses contracts anymore. Besides, signing piles paperwork can delay proceedings, and could cost you the sale of your timeshare.
Bonus Tip: April Fools! Want to sell your timeshare safely and securely? Don’t follow any of the advice on this page.
Instead, contact one of our licensed (and BBB accredited) timeshare brokers. We’ll help you sell your timeshare on the resale market, and we never charge an upfront fee for our services.
The Number One Mistake Timeshare Sellers Make
Selling your timeshare can be a tricky business. Unfortunately, unprepared sellers too often fall victim to timeshare scams or ineffective marketing schemes. Many sellers find themselves in difficult financial situations and, out of desperation, make rash decisions without proper research. Others simply don’t know the warning-signs. So, what’s the number one mistake timeshare sellers make, and how can you protect yourself?
Paying an upfront fee is the number one mistake timeshare sellers make. Whether a company is selling you ad-space on their “highly visible” website, or promising to close the sale for a “ready and waiting” buyer – it’s rarely worth taking the risk to pay upfront for services.
Scammers trick vulnerable sellers into cutting them checks to “close a deal” while ad-sites charge a flat fee to list your property among thousands of others – with no guarantee of sale. After all, once they’ve got your money, what’s their incentive to sell your timeshare?
So What can Timeshare Sellers Do?
Always use a licensed timeshare broker to sell your timeshare. Timeshare brokers, like other real-estate agents, don’t collect any payment until the sale is complete. Brokers work on a commission basis, meaning they’ve got true incentive to sell your timeshare. Additionally, brokers must maintain licensing to practice – ensuring a measure of reputability and transparency.
Other Timeshare Selling No-No’s
Now that you know the number one timeshare selling sin, rethink your strategy. Take the time to research carefully, and consider the following final “no-no’s” before jumping into a sale:
- Under or Overestimating your Timeshare’s Worth – Don’t know how much your timeshare is worth? Get a free market survey or contact a licensed broker to find out how much your timeshare is worth and price accordingly.
- Forgetting to Check the BBB – Not sure if a resale company is BBB Accredited? Find out what the Better Business Bureau thinks about your potential reseller, and think twice about working with a company that isn’t listed or accredited.
- Being Afraid to Ask Questions – Too many sellers don’t ask important questions – like how a broker works to sell your timeshare, or what percentage commission they’ll make off the sale. The right brokerage company will take the time to make sure you understand the whole process.
So there you have it. Don’t fall victim to the number one mistake timeshare sellers make: never pay an upfront fee to sell your timeshare. Follow these simple suggestions, and choose a licensed broker for a safe, reliable resale experience.
Great Resource: When Timeshare Resale Goes Wrong
This morning, the Tampa Bay Times ran an extensive story on timeshare fraud in the Florida timeshare resale industry. The article told the story of dozens of vulnerable, and often elderly, victims of timeshare scams, and the inability (or unwillingness) of law-enforcement officials to investigate.
Alongside the story, the Tampa Bay Times also offered this great resource – a quick slide-show that breaks down the mechanics of upfront fee timeshare resales entitled “Resale ripoff: When timeshare resale goes wrong.“
Click the link above to learn more about how timeshare scams operate. More than anything else, this story highlights why you should research your timeshare reseller carefully. Most importantly, always choose a licensed timeshare broker and never pay an upfront fee to sell your timeshare.
If you have any questions about timeshare resales, or you’re ready to sell your timeshare with a licensed broker – please don’t hesitate contact us today. Timeshare Broker Sales is a member of the Licensed Timeshare Resale Brokers Association, and a BBB Accredited Business. We never charge an upfront fee for our services.
UPDATE: Timeshare Scammer gets 15 Years
Last year we reported on Jennifer Kirk’s massive timeshare resale scam. We’re happy to report that last week Kirk was sentenced by a federal judge to a prison sentence of more than 15 years.
Kirk, a Florida-based telemarketer bilked more than 20,000 victims out of more than $30-million dollars in her nationwide timeshare resale scam. Additionally, according to an article published on businessweek.com, “three of Kirk’s former employees spun off a similar timeshare scam as Real Timeshare Marketing, which federal prosecutors say made $1.3 million using the same tactics that Kirk employed.”
Kirks’ scam had all the classic hallmarks: cold calls, promises of buyers and upfront fees. Protect yourself and do your research. Always choose licensed timeshare brokers and check their BBB Accreditation.
