Either payment plan boasts advantages, but there’s zero advantages to paying BOTH an upfront fee and a timeshare sales commission.

We’re all different. Therefore, what works for one person might not be the best idea for another in a similar situation. I think that this statement definitely applies when advertising a timeshare property for sale or rent.

In response to customer inquiries, I’d like to devote today’s post to talking about different payment plans for timeshare resale/rental advertising.

Upfront Fee (one-time)

Many people would rather pay an upfront fee, as long as this fee is only charged once and doesn’t come bundled with a dubious and unnecessary “appraisal fee” or “CMA fee” (CMA stands for “comparative market analysis”).

Advantages: A lot of online timeshare companies charge an upfront fee because it is a cost-effective alternative to paying a broker’s commission. The idea of saving money appeals to consumers, so it’s a natural way for online resellers to increase their volume of sales.

Disadvantages: A lot of timeshare scammers operate by collecting upfront fees, then disappearing. The entire burden of marketing a timeshare rests with the timeshare advertising company, so it’s vital to hook up with a good company from the start. Also, unethical resellers often continue charging “one-time” fees as time goes by… these and other problems have cast a negative light on good companies that choose to operate using this business model.

Commission-Based Timeshare Sales

People are drawn to online timeshare brokers because they don’t have to pay for services immediately. The broker receives a commission, on average at least 10% of the proceeds of the timeshare sale.

Advantages: Brokers are typically able to network with other brokers in order to find properties to exchange, buy, or sell. Brokers must be skilled negotiators in order to sell timeshare successfully. In some cases brokers can help sellers realize a decent return on their original purchase so that the back-end commission takes less of a bite from the total sale proceeds.

Disadvantages: From what we’ve seen, a broker is often unable to sell a timeshare faster than a well-optimized timeshare-by-owner web site, though timeframes are often similar, and no-one can ever predict when a timeshare will sell (see our post on phony timelines for more information). We’ve heard reports of brokers who tack on other fees in addition to the commission, and sometimes charge for appraisals. Appraisals are unnecessary except in some cases when donating timeshare; then they may be required for tax purposes. For selling timeshare, an appraisal is not needed: timeshares are never appraised before they are first sold, so why should an appraisal be necessary on the resale market?

Choosing a broker is entering into an important business partnership, a partnership founded on trust. Therefore, due diligence is especially imperative here. Your broker is your most trusted advisor when it comes to navigating the sometimes capricious world of vacation real estate. Naturally, if you choose to go this route, you’ll want to work with the most effective brokers available. My colleagues and I work with a wide network of brokers and timeshare sales professionals. If you’re looking for a broker, we can refer you to the best in the business. Just give us a call!

Here’s some tips to keep in mind when dealing with a timeshare-by-owner site OR a licensed timeshare broker:

1. Does this company have a record with the Better Business Bureau? Don’t take their word for it, but do perform your own investigation into a company’s reputation. If they do have a record with the Bureau, is it a record in good standing or is it marred by a history of complaints?

2. When asked to pay an upfront fee to advertise your timeshare, demand proof of the company’s ability to sell it. What will they do to make sure your property sells? If they can’t convince you that they can get the job done, don’t pay the fee!

3. Whether you choose a broker or a timeshare-by-owner site, I would advise strongly against enlisting the services of a company which charges both an upfront fee and a commission on the back end of the sale, on the basis that charging the customer twice for one service is unnecessary. If you choose a company which charges both an upfront fee (sometimes called “listing fee”) and a commission, I advise you to use extreme caution when dealing with a company of this nature. Several of our customers describe bad experiences with companies like this.

We all know there are many superstitions attached to Friday the 13th, but have you ever wondered why?

Today is the day to amaze (or annoy) your friends and co-workers by throwing around the words, paraskevidekatriaphobia and triskaidekaphobia. The first being the fear of Friday the 13th and the second being the fear of the number 13 and everything related to it.

Friday the 13th trepidation seems to have arisen from the fusion of two separate fears—the triskaidekaphobia terror of anything connected to the number 13, and a widespread belief that Friday itself is a bad luck day, or as some cultures label it, “the devil’s day”. Combine the two, and you apparently tempt a double-whammy of bad luck and ill fate.

Fear of the number 13 has often been linked to Christianity and the Last Supper, with 13 people in attendance. The betrayal and the (Friday) crucifixion of Jesus Christ followed the supper, as did the death of Judas Iscariot about the same time.

This left some people believing that the number 13 carries extreme bad luck and that it is certain misfortunate to host 13 guests for dinner, as one of them will surely die before the year is out. 

In reality, the idea that 13 is unlucky is evidenced much earlier in history, in superstitions springing from Norse mythology, which date to the 13th (of course) century.

Those intrigued by the archaic evidence on this subject can certainly find modern day parallels. For example, in 1970, NASA launched Apollo 13 at 1313 hours, Central Time. As you may recall, during the mission (on April 13, to be exact) an oxygen tank exploded, resulting in near-disaster for the mission and her crew.

On the other hand, the Apollo 13 mission ended with the safe return of the crew and many valuable lessons learned, (not to mention some pretty nice success for Ron Howard, Tom Hanks, and Gary Sinise, as well). Furthermore, the systems at NASA don’t operate on Central Time, as Cape Canaveral and Kennedy Space Center are clearly located in the Eastern Time zone, and their records are kept using Eastern Standard Time.

Looks like the triskaidekaphobes don’t have much of a case in this instance, though I admit that eerie coincidences are evident.

Still, if you find yourself plagued by paraskevidekatriaphobia, here’s a suggestion: Plan ahead. There will be another Friday the 13th in October of this year, two in 2007 (April and July), and one in June of 2008. Then use your timeshare to visit Hong Kong, the Chinese mainland, or San Francisco’s Chinatown. As you may know, many Chinese people consider the number 13 to be a very lucky number.

After fifteen months, no communication, and exchange hassles, some Bahamas timeshare owners may resort to legal action.

While checking Google News this morning, I found an article which describes certain problems surrounding a timeshare development on Grand Bahama.

According to this article, since September of 2004, Crowne Plaza Golf Resort and Casino at the Royal Oasis on Grand Bahama has been closed for business. Those who own timeshares there have received no word on whether or not the current management has any plans of selling this property. To compound matters, when these owners attempt to exchange their timeshares through RCI, they are told that their points have been frozen.

If these allegations are true, what does this mean? Not only have these owners been unable to use their vacation time because the resort has remained closed, they can’t exchange the time they’ve already bought.

In my opinion, this sort of thing does more damage to timeshare’s reputation than thousands of one-man “take-the-money-and-run” scam operations. Here we have a report of not just a lone “timeshare spammer” but at least one major company at fault. This is the kind of story which undermines the whole industry’s credibility at a fundamental level. Thanks to this, thousands of people will reconsider buying a timeshare. After reading this account, who can blame them? Where and with whom does accountability lie? What does this mean for Bahamas timeshare in the future?

My sincerest hope is that, if the resort company is to blame, RCI will seek restitution from the resort on behalf of the many timeshare owners who bought time there. People bought these points with the natural expectation that they would be able to use them! If these points are now useless, this situation just might effectively sabotage the entire concept of timeshare points systems.

My associates and I have personally seen points systems work extremely well on thousands of occasions, but if these kinds of complaints recur, a new solution should be developed by exchange companies.

However, despite this negative publicity, I still have faith in the system. RCI’s parent company Cendant has been rearranging its corporate structure of late, leaving one with the hope that such an ambitious restructuring might mean smoother sailing in the future.

My company and I will be following this story over the weeks and months to come. Our readers can expect more updates as events develop.

Current controversy over certain Virginia timeshares is a perfect lesson in why timeshare buyers must know and understand what they are purchasing.

When it comes to real estate transactions, we’ve all heard the phrase “caveat emptor,” which translates, of course, to the prudent warning, “buyer beware.” But what does “buyer beware,” really mean when you are talking about timeshares? What exactly, should you beware of?

Last Thursday night’s meeting of the Amherst County (Virginia) Planning Commission gives us insight into how problems arise in a few timeshare communities—the types of problems that could give a timeshare purchaser reason to be cautious.

Amherst County, located in southwestern Virginia, proudly bills itself as, “Virginia’s most civilized wilderness.” Presently that civilization includes no timeshare properties in Amherst or the surrounding counties, which is just the way residents like it. Drive the winding Slapp Creek Road up Banks Mountain and in the yards of many homeowners you will see signs urging, “No Timeshares Here!”

These yard signs reflect local reaction to the construction by Hopkins Brothers Realty of a vacation cabin in an area known as Pedlar Camp—which was fine with the neighbors as long as they believed the lovely home was a single-family residence. Hopkins Brothers however, has plans to construct three other cabins at Pedlar Camp and to market fractional ownership for each of the cabins in four-week blocks sold to thirteen different owners. Ten of the first thirteen deeded ownerships are already sold.

Amherst County has no code ordinances either permitting or prohibiting timeshare development, but according to County Attorney Tom Shrader, the permit to build the first cabin was properly issued. The News & Advance (a Lynchburg daily newspaper) quotes Grant Massie, Amherst County Director of Planning and Zoning, saying, “…What it comes down to, from my perspective, is how you define a single family home.”

The ten investors understand (hopefully) that they can never rent their vacation time at Pedlar Creek to anyone else. Nor will they be able to swap their weeks for time at other resorts, although according to the website for the property (www.blueridgetriangle.com) “…owners will be assisted in trading time among one another…”

A Pedlar Creek timeshare investment may turn out to be ideal for anyone who wants to regularly enjoy time in a charming vacation home in the beautiful Blue Ridge Mountains. On the other hand, buyer beware because these cabins do not represent “timeshare” in the traditional sense of the word, and they do not include the options for swapping or renting that many timeshare owners have come to expect. Just as importantly, recognize that these properties are being constructed in an area where local residents object, meaning there may be many battles ahead over zoning and related ordinances.

So are Pedlar Camp and other properties like it, good timeshare investments?

Only time and your personal vacation desires will tell. But before you sign your name on any document, BUYER BEWARE. Make sure you thoroughly understand the terms under which you are making your purchase.