What is a timeshare and how does a timeshare work? I sat through an entire timeshare presentation, and have all the numbers to share with you to figure out are timeshares worth it. Plus, how to sell a timeshare you no longer want.
One of the things that I love about blogging is that it gives me a great excuse to try out new things that I have always wanted to, but have never quite had the gumption to do…such as Timeshares.
A few weeks ago, an invitation to a timeshare presentation came in the mail, and I accepted it. I used to work in marketing, and one of my last projects was for a hotel chain with timeshares as one of its competitors, so I got to briefly delve into the world of them but have not ever visited one. Also, the prizes they were offering seemed way too good to be true and I wanted to test it out for both my readers’ and my own sake and see if I can actually walk away with something more than I came with (instead of walking away with something less…like a pocketful of my money).
What is a Timeshare and How Does a Timeshare Work?
Before we dive into my experience on a timeshare tour, let's talk about what a timeshare is.
How timeshares work: A timeshare is a piece of property where there are joint owners who divide up the use of the property into time-shares (meaning, an allotment of time such as one week a year, two weeks a year, or whatever time share is worked out for that particular piece of property).
Since a person becomes a co-owner to the property, there are maintenance costs that also need to be paid.
To learn more about the legal rights you have as a timeshare owner, go here.
Now we move back into my own experience taking a timeshare tour.
A timeshare tour is a way for timeshare companies to bring in potential new clients who will buy timeshares.
The common tactic to get more traffic into these tours is by offering high-value prizes (or seemingly high-value prizes — you'll read more about this below) so that you'll show up for 1.5 hours or more.
My appointment was set for 10:30 a.m. on a Friday and was to last for 1.5 hours. It was an hour away from where I lived, but with the promise of walking away with a $40 American Express card, a trip for two to Las Vegas for 3 days and 2 nights, airfare and hotel included or a trip for two to a cruise leaving a nearby port, plus either a $49,000 BMW, $1500 shopping spree, $500 cash, or a romantic getaway for 5 days and 4 nights for two, the drive did not bother me at all. According to the flyer, you were guaranteed to walk away with at minimum $1295 in gifts, with no purchase necessary. (Frugal decadence at its best).
I walked into a room of probably 50 other people. We all filled out a sheet of paperwork for identification (turns out you cannot get your prize without two forms of ID). On the television screen in the corner was playing America’s Funniest Home Videos, and against the wall was a table with some juice and cookies. One by one our names were called by a representative, who then took us into another room and individually spoke to us. After twenty minutes I was greeted by a very enthusiastic college student clad in a suit. His major was business.
In the building next door he gathered some market research about me. It turns out that by our approximations, Paul and I spend around $2100 per year on travelling (one large trip, and two small weekend getaways) or $200 per month (although honestly it’s $175 if you do the math). Over the course of the next 9 years, this salesman showed me that that would add up to $18,000. But wait—that didn’t include inflation; he opened up a notebook with a paper in plastic sheeting showing the inflationary values of a coca-cola and a movie rental from 1960 until today. The prices had gone up by nearly 536%! (I didn’t have the heart to tell him that salaries had also risen since then). He wanted to be conservative, so he told me that I would be looking at an inflation of at least 100%. So I was truly looking at $36,000 for our one week and two weekend getaways per year.
Next came the tour in his F-150. We saw a cabin on the property, the activities area, as well as the condominium-type buildings. I thought the grounds were sufficient, but not as extravagant as I had imagined them to be. At each location that we toured, he left me with the benefits in mind (you can have your own guests, come and stay with us for a week and if you want to stay longer, the cost is just $75 per night, etc.). He kept quizzing me, the questions rolling off his tongue with assurance that he would get the answer he was leading to. Honestly, I just couldn’t produce all of the answers he wanted; sometimes I was confused by the question, or I had to detail to him that once I had taken a trip to Maryland for a long weekend for $7 in total (frequent flyer miles for the airfare, free lodging at a beautiful cottage on my college campus for a special dinner I was invited to attend courtesy of my old department head, borrowed a car from my aunt who lives in Washington D.C. and had a gas gift card to fill the tank up afterwards, etc.).
After the tour we headed back to the building, where it was finally going to be revealed to me the cost of the timeshare. The college student reminded me how much I was looking at spending in the next 9 years for my traveling, and as he continued speaking, that huge $36,000 number glared at me from the page.
Here’s how it broke down: The promotion for the day was that I would get a one week vacation each year, plus membership into RCI (meaning I can stay at various timeshare locations all around the world for an extra $189 per week), plus stay extra nights for $75, plus have as many guests as I want coming over, plus have the option of staying in 7 different locations around the U.S. (I have to admit, none were particularly to my liking, and I let him know that)…all for the price of $15,500, plus $65 per month maintenance fee. And by the way, this was $20,500 less that what I was going to spend on travel in the next 9 years anyway, so how could I refuse? Besides, I had said myself that currently we spend around $200 per month on travel. For just $289 more per month, $489 per month for 360 months, I can actually own something and rise above all of the other people who rent every year.
I said that I would have to think about it, which was exactly what I intended on doing. As per usual, I wanted to run some numbers at home, talk it over with Paul, and see if it was truly worth it.
Note to readers: For such large financial decisions, it is always a good idea to step away, run the numbers and truly think about your decision. Being pressured to buy on the spot is no way to make a purchase. For purposes of anonymity, I am not going to release the name of this particular timeshare.
Repeatedly, the salesman asked me what was holding me back. I was completely honest with him; my fiancée and I were closing on a home during that week, and I didn’t want to jeopardize our credit history by taking on a rather large loan during the process, (as well as take on a loan of this size when we are about to take on a huge loan otherwise)! The salesman respected that, and waited for his manager to come over so that I could receive my gifts. In reality, the next man who came was the second man on the 3-salesman approach to pressure me into buying.
For fifteen minutes I spoke with this second gentleman. He was noticeably upset that I had not brought my fiancée, as if I had broken some unwritten rule; when I told him that “we” are buying a home soon, he looked puzzled at my sheet, and said “we…who is we?” I said “oh, my fiancée”. He said “why isn’t he here” and looked at me as if I had committed a crime. My phone started ringing at that moment, and was unfortunately on the chair beside us all because the second salesman saw Paul’s name pop-up.
“Oh—go ahead and answer that and talk it over. I’ll go speak with my manager about this”, he said.
I said “I don’t want to talk with him about this over the phone, and especially while he is at work.”
He replied, “Well, he wants to talk to you; look, he’s calling you.” He then stood up, and demanded that I call my fiancée while he went to talk to his manager. As anyone would, I simply sat there and refused to do so (I do not take commands from complete strangers). When he returned with a better offer from his manager, he asked if I had done as he told me to. I said “no”.
In just fifteen minutes, the price of owning a timeshare went from $15,500 to $8,880. The salesman explained that something happened that never happens. Someone reneged on their deal, but had already paid down their deed by $6,620. This would be a savings to me. I could just pick up their deed where they left it off. I still politely declined, shook hands with the person, and he left.
Then came the third salesman in the guise of another manager to give me my gifts. He asked how everyone had treated me, and I said “fine”, and put in a great word for the first salesman because he had really done a great job of representing the place. This salesman came with another type of deal. “I heard that you are buying a home and that the price is what is holding you back. I am here to tell you that we will accept $150 down, and $100 per month for the next ten months to hold these prices for you. At the end of ten months, we will put that money towards your purchasing price. How does that sound?” I thought it sounded like they were willing to work with me, which was nice. Still, I was not ready to take on that debt and sign on the dotted line on the spot. Honestly, I had every intention of thinking it over and running the numbers at home.
The third man gave up with an air of utter frustration. He escorted me out the back door and told me which building to go to for the gifts. He walked away, and I put my hand out to shake his. He shook it, but without even looking at me and shaking his head with utter disdain. Wow. I had gone from being a rockstar to being the mistress in a back alley in a matter of an hour.
They delivered on their prize promise; it was a lottery card that you scratched off to see if you won the BMW or shopping spree, or cash, or the romantic getaway (which is the token prize that most everyone wins, and the first salesman explained that to me). I walked away with my $40 American Express Giftcard, a trip for two to Las Vegas for 3 days and 2 nights with roundtrip airfare and the hotel included, and a trip for two for 5 days/4 nights to a choice of several Caribbean locations with hotel included (you supply your own airfare).
Three and a half hours from when I had first arrived, and with my prizes in hand, I drove away to the symbolic tunes of Tom Petty’s “Free Falling”, feeling entirely relieved from the pressure of buying something that had been building incrementally stronger with each of the three salesman.
I attempted to sell the Caribbean package on Craigslist, but it did not pan out. No big deal. What I did walk away with that was certainly worth my 3.5 hours was the Las Vegas trip.
Paul just turned 30 in August, and at the time of the Timeshare we had decided that we wanted to celebrate by taking a weekend trip to Las Vegas and having ourselves a good ol’ time in the dazzle and sparkle that can only be found in the middle of Nevada’s desert (oh, and by looking at the earth in space; apparently Las Vegas sticks out like a sore thumb from there as well). Besides, we had a free trip coming to us anyway, so why not?
There were several more barriers to get through in order to get this trip, and I diligently filled out all of the paperwork involved. We selected three dates that were not within 10 days of a holiday, and started on a Tuesday or a Wednesday, and were at least 60 days apart from one another, and were not within the next 14 days. Then I gave a deposit of $100 to cover taxes on hotel and airfare, which seemed reasonable. Then I waited for a travel agent rep to call me to do the official booking.
Nina from Casablanca Express was my contact. In her chipper and quick-talking voice—as if she were about to rip off a band-aid in order that I may not feel the pain until afterwards when all of my nerves had a moment to catch-up—she explained to me that I had four options. It turns out that 99% of people do not choose to go through with their 3 day, 2 night trip after they hear all of the restrictions, and she was sure that after I heard these restrictions, that I would choose against it as well.
So without further ado, the following are the four options we were given:
- Use the prize. You will get 3 days and two nights in Las Vegas; however your flight will leave between 6:00-10:00 p.m. on Wednesday night, and between 6:00-12:00 a.m. on Friday morning. Your hotel will not be on the strip; it will be either at the airport, or a hotel called Wild Wild West, which is located at truck stop (Happy Birthday, Paul!). You are coming from Houston, and so most likely there will be stopovers/layovers. There will be no shuttle service to pick you up from the airport, so you will need to pay for your own taxi.
- Upgrade. For $483 for the two of you, you will be removed from the restrictions. Your flight will leave Wednesday morning and Friday afternoon or evening. Your hotel will be on the strip in a luxury tower room. You will have free shuttle service back and forth to the airport. You will get two free tickets to a magic show by Mac King (she assured me I should google him and he’s ultra-famous and sought after). You will get buy-one-get-one-free dinner at the Blues House, and several other restaurants.
- Get there yourself. Pay for your own flight there, or perhaps you have some frequent flyer miles you can use. If you do this, we will upgrade you for free to a hotel on the strip, plus refund part of your $100 deposit.
- Go to South Padre Island. Drive to South Padre Island, and we will pay for your two nights’ hotel stay in the Ramada, which has a four star rating. You will get free breakfast both mornings. (At this point I asked if we would also receive part of our $100 deposit back, and she was baffled—no one had asked her this before. I explained to her that if we chose this option, we would be getting ourselves to the Island, and Casablanca would not be purchasing airfare, so we should be refunded part of the $100. She simply said “they are not going to do that”. Is “they” the Timeshare mafia?)
- Get a Refund. We will mail you a check for $100.
As crazy as it may sound, this conversation actually did occur, and I tried to use the same language as she did in the descriptions above.
I was particularly impressed with all of the sneaky ways she and Casablanca Express had concocted to get me to basically pay for the trip myself while simultaneously trying to make me believe that we were getting a free deal. In a moment of true spite, I almost accepted the original deal (option # 1) just to make them pay for everything and to show them that I was not like other people (who supposedly 99% of the time turned it down once they saw what they were getting). Hey, it would have made a great article, right—truck stop gambling extraordinaire?
I decided to pay for our own airfare and get the upgrade to a hotel on the strip. It still didn’t feel right to me, but Paul’s birthday was coming up and I had to make a decision. I just so happened to have a free airfare reward with Southwest anyway, so I would just be paying for his ticket. The rep booked us for the Riviera on the strip, gave us a Las Vegas discount card (which accounts for all the buy one get one free offers on restaurants she had told me about—undoubtedly a free promotion they have with a partner), and said that we would get an $82 refund from our $100 upon checking in at the hotel.
But then…I looked at the hotel we would be staying at and found that during the weekdays any person could book it for just $27 a night. I looked up the discount card and found that it was super cheap as well. I had just let these people get away with paying something ridiculously cheap like $70 for our 3 days 2 nights all expense trip to Las Vegas. I felt shammed!
Paul’s birthday was on August 6th, so I gave Paul his gifts. One of them would have included the Las Vegas trip, except that he kept pestering me with the details of the trip leading up to his birthday and when I finally broke down and told him everything he said “get our money back, babers!”
I called the woman back from Casablanca and asked for a full refund of our $100. She obliged. Case closed. Las Vegas, we will see you another time.
Since moving to Texas in 2008 I created a Texas Bucket List where I detailed roughly ten experiences/places I wanted to see while living in Texas. When I saw the opportunity to fulfill one of these through a social buying site deal offering a trip to New Orleans at a crazy-great price, I got really excited. My friend had passed a deal along where you pay $89 for two nights’ stay at an upscale 3.5 to 4 star New Orleans hotel, plus you have the choice of a special gift (Complimentary $50 Visa Rewards card, or One Additional Complimentary Room Night). This was all valued at $408. You can start to see where the red flags were raised. With Mardi Gras coming up, it is clearly not the off-season for New Orleans where one might find a deal as sweet as this. Also, all travel social buying site deals I have ever seen have been for up to 50% off, not 78% off. I began to wonder, is New Orleans on clearance for any particular reason?
I figured it out by perusing around the website a bit more. This was a vacation property timeshare in disguise as a social buying deal.
Terms and Conditions Most Will Glaze Over
Let’s be honest, most people get a glaze in their eyes when reading legalese so they decide to skip over it entirely and rely on the advertising and the fact that others have signed on before them and not faced disaster. Dealster.com, the advertiser of this deal, says on its About Page that it wants to offer compelling deals to consumers, which means “…you get the things you want at big savings and without a lot of fine print…” (italics are my own). My two pages of printed fine print clearly do not fit this bill. In this case, not reading the terms and conditions will leave you very disgruntled upon arriving at the hotel for your getaway weekend (er, most likely a Tuesday-Thursday per the fine print) when you learn this:
- Your package does not include any applicable taxes, hotel service fees or regulatory surcharges (estimated at between $50-60 per trip, and an additional $30 per night in parking fees)
- You agree to attend a presentation that will last a minimum of 120 minutes and married or co-habitating couples must attend the orientation and tour together
- Your getaway is for the purpose of promoting the sale of vacation ownership plans
And if you are upset when checking in and decide to leave in a fit of rebellion, you may be very surprised with the “no show” fee that will be charged to your credit card. “Participants with confirmed reservations who fail to check-in on their reservation date or fail to reschedule at least two (2) weeks in advance of their arrival date shall forfeit their use of this certificate and be charged a one night “no show fee”.
Call me crazy, but this is not what social buying sites are all about. Can you imagine buying one of these vouchers to New Orleans only to learn that you must attend a 120-minute presentation about buying into the vacation property? How about if you cancel a few days in advance (normally allowed at other hotels) only to be charged a “no show” fee? Social buying sites are supposed to unite consumers into a large enough group where their purchasing power allows for a significant reduction in the cost of the experience, service, or item being offered. The seller gets exposure for their brand, makes a small profit (admittedly small, but many times during off-season when profits are harder to come by), and consumers are left with a great deal.
In my mind, a timeshare is a timeshare, and a discounted travel deal is a discounted travel deal. One should not be substituted for the other, especially when you are sending these types of deals to someone’s inbox in the guise of a social buying deal. If social buying sites begin to slip-in timeshare buying opportunities with their travel deals they will surely create a bitter taste in most of their clients’ mouths (me included). That is just not good for business.
Did YOU sit through a presentation, and − gulp − come out with a timeshare property you no longer want (and might not have wanted in the first place)? Don't worry, there are options to get out of it.
Option #1: Take Advantage of Your State's Rescind Period
Did you just purchase the timeshare recently (as in, last week) and it's giving you heartburn at night? You might have an out through your state's consumer protection laws.
Each state sets their own rules on the rescind period for timeshares (also known as the “cooling off period”). So if you got caught up in a timeshare presentation and would like to get out of your contract, start by checking your purchase documents. There should be an area explaining how to rescind the offer.
But you have to act quickly; some states only offer several days, and the most amount of days where you can give a timeshare back is in Alaska where the cooling off period is 15 days.
Time is not on your side.
So maybe you can't take advantage of the rescind period (doh!) because you bought this thing a year ago, and thinking about selling your timeshare makes your head spin. Finding someone to rent it for your available weeks is probably your next best option. This will hopefully cover at least your maintenance fees you have to pay each year (industry-wide, these are generally around $300-$845 according to the American Resort Development Association), and perhaps help you recoup some of your other costs as well. In fact, a reputable industry resource called SellMyTimeShareNow.com says that their 2014 rental offer average value was $2,000.
Not bad, especially if you have not gotten around to using your weeks anyway and it's just sitting there unused. Plus this option buys you time as you figure out if you're ready for Option #3.
According to SellMyTimeShareNow.com's Annual Offer Report, $270 million in purchase and rental offers passed through their site in 2015. This is good news for you! Having an active marketplace means it is more likely that you can sell your timeshare and get rid of it forever.
Hint: You need to look out when dealing with Timeshare resellers.
Not quite sure if you're ready for this step? You can at least do a free market valuation of your timeshare through their site or others like it so that you can take the time to assess whether this is a good option or not (probably unlike the pressure tactics used when you first purchased it and didn't really have the time to run the numbers). Keep in mind that your timeshare’s value is influenced by whether or not it's deeded, the usage frequency, the season your week is available in, and the location, unit size, brand, etc.
As you can see, the great news is you've got three solid options if you're looking to unload an unwanted timeshare. So don't feel stuck! Even though it will take some effort to take advantage of any one of these options, it is certainly worth your time instead of hanging onto something that is draining thousands of dollars from your bank account.
Timeshares may be for you. Honestly, the ability to use my week in foreign countries truly sold me on the concept because it is ultimate flexibility. Also, the idea that I can ‘will’ this deed to another generation appeals to me (I know, I am only 26, but I have really long-term thinking). What didn’t sell me is the fact that on top of paying the $15,500, each year I would be paying $780 in “maintenance fees” to upkeep my property, which, let’s face it, is the cost of my two smaller weekend getaways combined. I also did not buy into the 100% inflation over the next 20 years (even though this could happen, I am confident in my abilities to find ways around price hikes). Besides that, the property I saw was only sufficient in my eyes and not the type of luxurious I would be looking for to fork out $489 per month for the next 30 years of my life.
Has anyone else ever had experience with timeshares, or owns one? I’d be curious to hear some stories.