About 10 million Americans own timeshares. They seem like a great way to fund vacations and own a little slice of paradise at the same time.
Timeshares aren’t always as dreamy as they seem. Timeshare owners have to pay high maintenance fees, or they find that they don’t use the timeshare at all.
They decide to sell, and that’s where timeshare scams exist. People who are desperate to make their money back fall victim to these scams.
Read on to learn how to avoid timeshare scams and what to look for in a timeshare.
Identify Timeshare Purchase Scams
There aren’t many timeshare scams at the beginning of the process. You still need to know what you’re buying. You could end up with a timeshare that you’ll want to sell later on.
Consider the entire cost of the timeshare. Assume that maintenance fees will increase each year. Include the cost of the vacation, travel costs, and any resort fees.
Understand the differences between a timeshare, vacation club, and a points system. A timeshare may only let you get a week at a specific resort property. A vacation club lets you stay at properties within that network.
Questions to Ask Before Buying a Timeshare
How did you find your way into a timeshare presentation? A company might have called you to offer a free hotel stay in exchange for attending a presentation. You could get an offer for an amazing free gift while on vacation.
Timeshare sales presentations use sales tactics to pressure you to make a major purchase right then and there.
Make sure you learn about the company before you attend the presentation. Beware of companies that tell you an offer is only available for one day. Ask them why that’s the case.
Also, ask about canceling the contract if you need to. You should have several days to withdraw from the contract. Read the contract carefully before you sign it.
Beware of Timeshare Resale Scams
The most common timeshare scams are resale scams. You’ll get contacted by someone promising to pay above your purchase price for your timeshare. They might offer stock or a large sum of money.
Here’s the scam. In order to receive payment for the timeshare, you have to pay closing costs. Closing costs total of thousands of dollars.
You’re asked to wire the funds to someone, and you’ll never hear from them again.
Unfortunately, you can’t trust the name of the company or the endorsements they have, like the Dave Ramsey Timeshare Scam. It’s an example of an endorsement of a company that asked for upfront payments without delivering results for clients.
Tips to Avoid Timeshare Scams
It’s easy to buy a timeshare and not fully understand what you’re buying. The timeshare industry thrives because of the lure of an annual dream vacation and high-pressure sales tactics.
Hopefully, you learned tips to avoid timeshare scams to help you get the best deal possible. If you enjoyed learning about timeshares, you’ll love the other lifestyle articles on this site. Head over to the home page and check them out today!
