My Buy Essay

Posts Tagged ‘timeshare’

My comments are made on the basis that one is buying a timeshare for mainly trading purposes. All of the statements I will make are actual experiences not something someone said, or I heard somewhere. My family has been involved in timesharing since 1980. First my parents then my sisters and myself, now many of my extended family members own timeshare weeks. I am average income (work everyday), average intelligence. So since I did it anyone with patience, a minimum amount of time, and dedication can achieve the same results.

Before even considering purchasing a timeshare, please talk to people who have had bad experiences first. This way you will be leery of everything going on. Better yet just follow my advice and have no problems at all (just kidding).

After deciding to purchase, remember no matter what resale is better. My reasoning for this is, there are a lot of dissatisfied owners out there willing to take a loss just to get out. So make their mistake your marvel. I have been and continue to take tours while on vacation just to stay intuned with the pricing of weeks. I have yet to find a resort that comes close to fitting into my price range of $2500.00 – $4000.00. If you are frugal then you will feel that $8000.00- $2000.00 is way too much to pay. However if a buyer goes resale through broker or individual very low prices can be attained. I purchased my two bedroom, red week/40 at SouthShore Lake Resort, rated Gold Crown in the RCI exchange system, in HotSprings Arkansas for $2800.00 in 1990. With this week my wife and I have exchanged within the RCI exchange system without many problems. Always getting a nice Resort at the desired time. Put a little time in shopping for a honest broker.

Next be sure to buy at a nice resort. This is simple to do just give RCI a call and ask about the demand for the resort and week you’re interested in purchasing. When I’ve done this for family members the counselors have always been happy to give the information I requested. You probably already know why, but just in case, better resorts and weeks give you better trading power.

Also get a least a 2brm unit, since only a handful of resorts offer more than two bedroom anything more is a waste of money. Getting anything less limits one trading power depending on the resort, so two bedrooms are safe.

Two more reasons many timeshare owners get disgusted with their week is banking and searching. First banking, with RCI which is the only exchange system I’m familiar with one must bank at least one year in advance to maximize his trading power. A simple matter, just pay your maintenance fees and call RCI to space bank your week. Simple, yes but a great deal of owners wait too late and that creates disappointment. Next is searching, this can and has been a small problem sometimes for working people trying to schedule a vacation. Again within the RCI system the earlier one starts a search the better the chance of getting the resort you want. Usually I can schedule my New Years vacation one year in advance and get a match, other vacations I’m persistent with RCI on giving me the Resort I want. RCI says that it dosen’t do any good to call back after a search has been put in however, I’ve found this to be untrue on many occasions. There are many counselors answering the phone at RCI and some will work harder to get you what and when you want better than others so I call quite often when I know I have a difficult search in.

A couple of examples are News Years week 1995 I called until I got the best Resort in Palm Springs, Ca. The Desert Springs Villas 2/brm. Then New Years 1996 we went to Hilton Grande Vacation Villas in Las Vegas, Nv another tough one to match but persistence paid off. Some people may say this is too much trouble but free phone calls and a bit of time beats paying hundreds of dollars per for these accomidations.

Just a couple of other things I would like to cover. Owning in one place and living in another, dosen’t matter. That’s how I got my two bedroom week.. The people I purchased it from moved to Florida and didn’t feel comfortable being away from their home resort, their loss my gain. Just make sure you get a desirable Resort, remember a call to RCI will take care of that.

Next I am living proof that you don’t have to own in Las Vegas, Hawaii, or Orlando to get outstanding trades. I’ve heard for many many years that “you won’t always be able to get trades like that”. This may well come to truth some day but as for now it hasen’t. We just recently got confirmed into the Quarter House in New Orleans for New Years 1997 week on that cheap ole Arkansas week.

Remember to consider these items when deciding to purchase maintenance fees, deeded property, and fixed or floating time. So ends my sermon on “KEYS TO SUCCESSFUL TIMESHARING”. Once again all my suggestions are based on the premise that one is buying mainly for trading purposes however, they are basic and should work in most situations.

If you are wrong everyone will have forgotten what you said by the time it happens anyway. Having gotten that major disclaimer out of the way, let’s take a look at the industry and try to make some sense out of it.

The industry really got started almost thirty years ago in the United States. Many real estate developers lured by the vision of being able to sell a $100,000 condo for $500,000 jumped in. Not realizing they were in the marketing business in which they were inexperienced rather than the development business they didn’t do all that well and many went under. The few who really understood what they were doing did very well. Some built sizable timeshare empires.

Then the industry started to mature. The major hotel chains such as Marriott, Hilton, etc. decided they were losing way too many of the vacation lodging customers to timesharing. They also had a perfect vehicle to insure the brand loyalty they had been spending so much to achieve. With their huge resources they effectively drove all but a few of the smaller developers out of the business. The largest independent developers are still doing very well in spite of this. Now where does the industry go from here?

Prediction #1: The chains and the largest developers will continue to grow and to offer more widely appealing products such as points systems and multiple locations. Their pricing levels will be in the $12,000 to $25,000 range per yearly timeshare week. The biennial sales (every other year) will still enable them to also gain the lower end of this market.

In the meantime, the developers overlooked a simple, logical by-product of their millions of sold timeshares. That is the resale market. Some of these original timeshares were sold twenty-five years ago to people who were in their seventies at the time. They simply cannot use the product any more. Further, since it was/is a real estate product which theoretically never dies, there are many good reasons to have to sell and move on.

General real estate brokers took a look at this timeshare resale market where the whole resale price is about a third of a selling broker’s three- percent commission on a house and simply ignored it. Owners wishing to resell then had nowhere to turn. There was no marketing system. As a result, prices plummeted. People who had not really paid too much to the developer (after all they didn’t really make a killing) could now sell for only a fraction of what they had paid.

Enter the scammer. These folks who seem to always be the first into any new arena promised the timeshare sellers anything they wanted to hear in return for an advance fee of from $300 to $5,000. If you went for one of these deals don’t feel too bad. So did I and I should know better. I sent $350 to a company in Florida who put an ad in the Orlando shopping news for $9. That was the whole shake of the dice. It was also when I decided to provide viable solution to the resale problem…namely to provide a straight-ahead resale brokerage which would get paid when the timeshare was sold. Fortunately there were others around the country that thought the same way.

The resale business is now developing along these lines. As more honest brokers get into the resale business, they will become a group who will drive out the bad apples. They may even get something like a Resale Multiple Listing Service together. There are already some indications of this on the Internet.

Prediction #2: The good guys will drive out the bad guys.

Years ago, condominiums were in about the same place as timeshares are today. Eastern lenders wouldn’t finance condos and many brokers wouldn’t sell them. After all, how could you sell or finance part of a building? Now the same argument is heard in relation to time in part of a building. It too will pass and the time will come when it is completely normal. Further, the price of resale timeshares, which is now at ridiculously low levels, will increase as they become more accepted. The gap between the pricing of new timeshares and used timeshares will narrow.

There are already cases where timeshares which were bought for investment have worked out well for the owners. Just don’t buy that argument if you are currently looking at new timeshare product.

Prediction #3: The future looks bright for resort timesharing. As time goes on and inflation continues (which it always does) timeshares will become more valuable just as primary housing has proven to be in the long run. If you are not yet on board, you couldn’t pick a better time. If you already are, it might be a good time to consider adding to your vacation happiness. Anyone joining in now will have a hard time going wrong.

TACKLES TIMESHARING

With lower occupancy rates, a sagging economy, and the changing demographics of travelers, hotel industry officials are constantly searching for ways to fill rooms. One hot topic is timesharing.

Long considered the bad boy of the hospitality business, timesharing is coming of age in both size and stature. The entrance of companies like Disney, Marriott, and Hilton has served notice that timesharing is a viable occupancy option for the hotel industry.

THE BASICS

Timesharing’s image of past decades is quickly changing. Many vacationers now view it as a viable and economical option for future vacations.

The timeshare market is exploding. In the past two years, almost 500,000 households have purchased a total of more than 700,000 timeshare intervals. That means there are more than 3 million owners at more than 3,000 resorts worldwide. Contrary to popular belief, a recent survey showed that most of these owners are happy with their purchase.

“It is clear that timesharing is gaining in popularity, not only here in the United States, but also across Europe, Mexico, and in South America,” says Tom Franks, president of the American Resort and Residential Development Association, the timeshare industry body. “We expect the industry to double in the next 10 years and the hotel industry will definitely be involved in a big way.”

Timesharing is the most prevalent form of vacation ownership. Consumers typically buy one or more weeks at a specific resort and can return to that resort every year or exchange it for a week at another resort. Prices currently average around $9,000, with annual maintenance fees of around $300.

Vacation timesharing generally takes one of two forms: “Fee” timesharing gives the purchaser permanent rights–in the form of a deed–to the property. About 85% of timeshare resorts sell under fee-ownership agreements. “Right-to-use” timesharing grants the purchaser the rights to the use of the property for an established period of time, such as 30 years. Under this type of timesharing, the purchaser does not receive a deed.

Rather than return to their home resort every year, many owners opt to exchange to one of thousands of other timeshare properties worldwide. For a small fee, companies like Resorts Condominiums International or Interval International perform these exchange services for member resorts and owners. Many owners say this exchange privilege was a key reason for buying. Many hotel chains in the timeshare industry form their own internal exchange system to complement the exchange company services.

Hotel companies have found that the basics of timesharing are an ideal fit for filling rooms. They have accomplished this by using existing facilities and services, as well as developing new properties and support structures. Their success stories tell the tale of why and how the hotel industry is tackling timesharing.

THE MARRIOTT STORY

While timesharing has been in the United States for just twenty years, Marriott has been around for more than six decades. In 1984, however, it entered the timesharing business and has turned the move into a very successful venture.

“We looked into it and in theory it was a sound idea,” says Bill Marriott. “But, timesharing in practice was often not up to our standards. If we weren’t able to effect rigid controls on the quality of timesharing that Marriott offered, we weren’t interested in doing it.”

That opportunity came in 1984, when American Resorts–which had recently opened a top-of-the-line timeshare project on Hilton Head Island called Monarch–initiated talks with Marriott. American Resorts’ concept of timesharing matched Marriott’s, but the company’s ability to carry that vision forward required major capital. Marriott had the capital.

Monarch’s success was an encouraging barometer and Marriott looked to new markets. Orlando was a very logical choice, because Marriott was already constructing a 192-acre resort complex: Mariott’s Orlando World Center.

Construction of Sabal Palms, the first of two timeshare resorts adjoining Marriott’s Orlando World Center, began in February 1986. The resort offered Marriott’s customarily luxurious surroundings and by the summer of 1987 the resort had sold all available weeks. Construction of Sabal Palms’ sister resort, Royal Palms, began a year later and recently sold out ahead of schedule.

Marriott’s fourth timeshare project was at Hilton Head Island’s signature location: Harbour Town. Construction began in 1987 and was completed in less than a year. Marriott’s Heritage Club at Harbour Town is keyed to the island’s exceptional sports facilities. Ownership includes special privileges at three golf courses and the Sea Pines Racquet Club.

The 30-villa resort’s 1,500-week inventory sold out in July 1988, just nine months after its initial offering. On the heels of this success, Marriott decided to build its third Hilton Head Island timeshare resort, Harbour Club at Harbour Town.

Marriott’s newest resort on Hilton Head Island is Sunset Pointe at Shelter Cove Harbour, which has already sold out. The resort features 25 timeshare residences, in addition to 86 existing luxury villas. Marriott is also developing a 25-acre oceanfront site for a new timeshare property, which is currently the Hilton Head Inn. The 288-unit property is called Grande Ocean Resort and started with brisk sales in April.

Marriott’s third Orlando timeshare resort, Cypress Harbour, is a 500-villa property near Sea World. It has carried forward Marriott’s successful Orlando timeshare vision and is experiencing brisk sales.

Marriott’s first resort in the west was Desert Springs Villas at Palm Desert, Arizona. The 236-villa resort is adjacent to Marriott’s Desert Springs Resort & Spa. Streamside at Vail in Colorado features 150 villas within two miles of Vail Village and North America’s largest ski mountain.

Its Paradise Island Beach Club in the Bahamas was Marriott’s first venture outside the U.S. The property offers 44 two-bedroom villas with an oceanfront location. Additional villas are planned. Marriott also recently announced that it plans a new timeshare resort on Barbados, next to Marriott’s Sam Lord’s Castle. It is called the Barbados Beach Club and started sales in February.

With so many successful timeshare properties, Marriott serves as an ideal example of hoteliers involved in timesharing. Marriott now has over 40,000 owners, with annual sales of more than $100 million. It offers many travel programs for their owners, including an excellent internal timeshare resort exchange program, exchanges throughout Marriott’s hotel and resort system, exchanges through one of the large exchange companies, one of the largest resale operations in the industry.

Marriott also recently announced that it had signed an agreement to manage a timeshare resort where it had no direct capital investment. The company expects this management contract to be the first of many. Other hotel companies already involved in timesharing or considering involvement are expect to follow suit.

Bob Miller, MORI’s executive vice president and general manager, feels that Marriott and other hotel companies can bring much to timeshare resort management. The advantages include: volume purchases and preventive maintenance for the property; collection of receivables and servicing of loans; a national rental program; access to the company’s reservations system; owner communications, systems support, and development; strong management; and much more.

HILTON TAKES ON TIMESHARING

In one of the most exciting timeshare industry developments since Marriott entered the business, Hilton Grand Vacations Company was recently formed. Though Hilton will probably not begin the construction of new timeshare properties until later this year it is already entering into the market aggressively.

As part of HGVC’s formation, it has joined as partners with a successful timeshare company in Florida, Mariner, and thus, already has 15 timeshare resorts and more than 22,000 owners. In addition to excellent resort properties, Mariner also runs many rental programs and a resale operation that has one of the highest volumes of any timeshare company in the United States.

As with many hotel companies entering the business, Hilton’s timeshare objectives include: creating a system of high-quality timeshare resorts throughout the world; establishing property management and hospitality services that include reservations, resale, and rental segments; and establishing a club to provide exchange services and access to its frequent guest program and other hotel industry programs.

Another key player in this joint venture is Ed McMullen Sr. of American Resorts. Mr. McMullen has been highly successful in timesharing and he brings much experience to Hilton. Both Mariner and McMullen have had great success with high-quality two-bedroom, two-bath units of about 1,200-square-feet and this policy will continue with Hilton and future construction.

Many resorts may be built on or near already-existing Hilton hotels and resorts throughout the world (e.g., the Caribbean, California, Colorado, Hawaii, Hilton Head Island, and Orlando). Owners will be able to enjoy all of the hotel or resort amenities and services. They will also have access to the Hilton HHonors program and other vacation packages offered by Hilton.

Hilton’s timeshare ownership program will be based on a points system, which has become very popular in the industry. The firm also plans to interface with Conrad Vacation Ownership, Hilton’s other timeshare program.

OTHER BIG NAMES IN TIMESHARING

Many other hospitality companies have reviewed the advantages of timesharing and are entering the business. Among many, two perfect examples are Disney and Ramada.

Disney Vacation Club (DVC) recently opened its first units at Walt Disney World. As with many companies in the industry, DVC tackled two major consumer concerns: flexibility and “hard-sell” sales techniques.

By purchasing a real estate interest in Disney Vacation Club Resort, guests automatically become members of the club and are entitled to a variety of exclusive benefits and privileges. Members also receive an annual allotment of vacation points, which may be used on vacations at the resort or at more than 100 worldwide resorts currently offered through a “Member Getaways” program.

“The flexibility of choosing among several different vacation experiences is what sets the Disney Vacation Club apart from many similar plans,” says General Manager Mark Pacala. “The vacation points system allows members to select the type of vacation best suited to their needs, particularly as those needs change from year to year.” Each year, members choose how to use their vacation points, either for one long vacation or a series of short getaways.

For a one-time purchase price and annual dues, guests may purchase a real estate interest in the resort, which expires after 50 years. The minimum purchase price is currently $11,730.

According to Mr. Pacala, the Disney timeshare project is substantially ahead of projections. The entrance and success of Disney serves as more proof that timesharing is a viable option for many hotel companies.

This past spring, Ramada International also entered into the timeshare business in the Bahamas. Through the purchase of a Divi timeshare resort near Nassau, Ramada is testing the waters to see if timesharing should be a part of a larger program for them. Divi recently emerged from Chapter 11 bankruptcy, with plans to concentrate on its five Caribbean resorts and ten timeshare locations.

With 50 units, the Ramada International timesharing project is part of the 295-suite Ramada South Ocean. They offer both floating-time and fixed-week units.

With this kind of company, the timeshare industry is really coming of age. Hotel officials obviously consider it an excellent way to fill rooms with happy vacationers.

The multiple ownership of individual weeks brought with it the guarantee of reservations for those who wanted to ski in the area. It was an immediate success. By the 1970′s some faltering condominium projects in St. Thomas, Fort Lauderdale and Puerto Rico were converted over to vacation ownership and thereafter timesharing became a viable vacation alternative.

Once the concept of vacation ownership was embraced by the United States it began to gain wide acceptance by the public. Sales jumped to over 50 million by the mid 1970′s and has climbed to more than 2 billion annually today. Vacation ownership has enjoyed substantial growth over the years with approximately 3.3 million timeshares sold since 1980. Currently there are over 5,000 vacation ownership resorts in over 75 countries around the world.

Exchanging a vacation ownership week in one resort for that of another resort was introduced in 1974 and thereafter timesharing offered variety and flexibility in the vacation experience. Although there are many exchange companies available which provide excellent service, the two major forces are Resort Condominiums International (RCI) which has approximately 3,250 member resorts and Interval International (II) with approximately 1,600 member resorts. Combined, these two companies provided over 1,600,000 exchanges last year.

During a 30 year span, the industry has grown from small (15-20 unit ) hotel conversions to the high quality condominium resorts of today. The evolution of the industry from scattered entrepreneurs to well managed professional development companies has brought with it a noticeable change for the better. Definitive leaders have emerged and created standards and ethics for management, marketing and sales practices. One such organization is the American Resort Development Association (ARDA) who’s members are required to comply with the established “Code of Ethics.” The recent entrance into the marketplace by major hospitality chains such as Disney, Hilton, Ramada, and Marriott has greatly enhanced the quality and image of the industry. Vacation ownership resorts of today are luxurious, spacious and well located.

By the advent of these stronger and more professional development and management companies along with the weeding out the less desirable developers and marketers, the industry is experiencing a noticeable swing from a historically negative to a very positive public image. One of the industry’s leading analysts (Ragatz and Associates) concluded that the majority of timeshare owners are very satisfied with their purchase and in fact, many own multiple weeks. The future of vacation ownership is very optimistic and has tremendous potential.

What Is Vacation Ownership ?

Vacation Ownership “Timesharing” is the right to use specific weeks of a resort during a specific time period. Simply put, it is the pre-purchase of a vacation. It is important to understand that vacation ownership is a commodity which is purchased to be enjoyed and used over the years. One should never purchase a timeshare with the intent of reselling it for a profit. Vacations are holidays for which we spend money to relax and rejuvenate; they are not investments.

Ownership of a timeshare is very similar to ownership of a condominium except that your rights are limited to a certain week during the year. The form of ownership can be Deeded, Leased or a License.

The License is somewhat different in that it is most commonly a membership in a club. Providing you are a member in good standing, you have the right to use the club and all it’s amenities. Be sure to read and understand all the terms and conditions of your club membership before you make the decision to buy. Most vacation ownership consists of either a deeded interest or a leased interest for a specific number of years.

A Deeded interest is owned outright forever. It an absolute right which can be sold, leased, or even willed to your heirs. Most timeshares which exist today are deeded ownership.

The Leased interest is much like an apartment lease except right to use it is restricted to a specific week during the year. Upon the expiration of the lease term your right to use will generally terminate and return to the resort. With a leased interest you should know the terms and conditions of the lease prior to making the decision to buy.

The time of your use can be either Fixed or Floating. Fixed time is a specific week during the year usually defined by a number. Generally the week will begin on a Friday, Saturday or Sunday and is given a number starting with the first week in January an run through the end of December. (Example – week 14 might be April 7 through April 13.)

Floating time means you have the right to select any available week within a certain season of the year. Therefore, if you own a summer season week you could pick any week which falls within the

defined summer months. However, competition between existing owners for prime weeks in very desirable location can impact availability. It is important to find which type of use best fits your specific travel needs.

Each resort is different and you should ask if there are other benefits which are available to its owners. Many resorts offer special reduced rental rates for extra nights or us of other resorts which are owned by the developer. This can add to you flexibility and provide substantial saving on vacation costs. Additionally, consider carefully how and where you normally vacation. This is very important in making your decision about where you should buy and what you will be trading.

Important Facts About Vacation Ownership

- Timeshare is one of the fastest growing areas of the travel and tourism industry.

- Timeshare owners live in more than 200 countries around the world.

- Major brands now involved in timeshare internationally include Hilton, Hyatt, Four Seasons, Sheraton, Ramada and De Vere.

- On a worldwide basis, more than 12 million people took a timeshare vacation in 1999

- There are around 5,500 timeshare resorts throughout the world in more than 90 countries.

- The industry is worth in excess of $6 billion annually. The top 10 timeshare companies alone reported combined sales in excess of $2.64 billion in 1999.

- During 1999 each of the top 10 performing timeshare companies worldwide recorded sales in excess of $100 million.

- RCI, the world’s leading timeshare exchange organization, arranged vacations for seven million people worldwide in 2000, making it one of the world’s largest travel companies.

Timeshare Today And In The Future

The modern timeshare industry continues to expand at a rapid rate, with new markets opening up in Asia and Eastern Europe and consolidation prevalent in the established markets of Western Europe and North America.

Firmly established as a key sector of the mainstream vacation market, the multi-billion dollar timeshare industry now embraces modest entrepreneurs and mighty corporations. Its global reach with close to 6,000 resorts in more than 90 countries extends from Spain to China, Mexico to South Africa.

Some of the world’s biggest names in the hospitality and leisure sector now have timeshare interests – Hilton, Sheraton, Disney, Ramada, Four Seasons, Hyatt, Westin, Ritz-Carlton and Radisson. At the same time, the list of well-known European companies with timeshare interests continues to grow – RIU Hotels (50% owned by TUI – Touristik Union International, Europe’s largest tour operator), Sol Melia, De Vere, Macdonald Hotels in partnership with Barratts (the UK’s Number One house builder), Mondi Ferienclub in Germany.

Quality developments around the world are enjoyed by millions of owners, their families and friends, making the phenomenon of timeshare a success story without equal. In 1999 over 12 million people took a timeshare vacation.

Timeshare owners come from over 190 countries but more of them live in the United States than anywhere else in the world – 47%! In fact the US has the lion’s share of timeshare resorts – over 1,500. And that accounts for more than 37% of the total worldwide. In the western world, timeshare is now a highly organized and regulated industry. Trade bodies such as the American Resort Development Association (ARDA) and the Organisation for Timeshare in Europe (OTE) work to apply codes of conduct and ensure that expansion is based on sound commercial practice and ethical standards.

There is also considerable regional, national and international legislation in place which aims to help protect the rights of potential purchasers and discourage the use of high-pressure sales tactics.

Timeshare in the future The worldwide timeshare industry looks set to grow in popularity and log record sales in the months and years ahead. Social trends mean more people have more time and money to devote to travel and the concept of vacation ownership. In many parts of the world, regulation has given timeshare a firm footing, helping to reassure and protect purchasers with a series of consumer protection measures.

Since its inception, timeshare has undergone a metamorphosis, according to Timeshare: Coming of Age, an independent report published in October, 1999. With the advent of the points-based system, the original real estate concept has been transformed into “a flexible, pre-paid vacation membership concept, placing timeshare where it belongs – in the mainstream of travel, tourism, hospitality and leisure”.

In 10 years time who knows where the next development will be?

A few of our customers told us about their creative ownership methods and use. They are very creative ideas on building and effectively using a timeshare portfolio.

There is a simple idea to most of these portfolios: Travel to the nicest places they could find as inexpensively as possible. They had found that timeshares let them do this. Their secret is to build a timeshare portfolio.

One customer has four consecutive weeks of timeshares at four different resorts around the Gulf Coast of Florida. Each year the customer and his wife travel to Florida and spend four weeks at four nice resorts. Their total housing costs for four weeks is under $2000 (based on the total maintenance fees they pay).

The couple is retired, so they have more free time than most people. But their idea is great &ndash and cost effective. They are also not alone.

We see more and more people who recognize the value of a timeshare and then purchase multiple properties. These properties to give them cost effective travel at great resorts.

Here are a couple Timeshare Portfolio models we have seen our savvy customers use:

The “Expressway” Portfolio

The scenario given at the beginning of this article is a perfect example of an Expressway Portfolio. In this model, the timeshare property owner wishes to visit a specific geographic repeatedly. The Expressway Portfolio is usually composed of fixed-week properties in the same general area. People who build this portfolio like the idea of spending their vacation time in a specific area.

Customers who favor the Expressway Portfolio model often have children or extended families that frequently travel together. Often, the resorts are within a half-day car ride from home. Since the resorts are close, travel expenses are kept to a minimum.

The Dartboard Portfolio

This Dartboard Portfolio is the model of choice for “empty nesters” or those who have more time and flexibility. This portfolio emphasizes properties acquired primarily for trading, or floating weeks at desirable resorts. Each year’s vacation planning is like throwing a dart at a dartboard.

Each year the Dartboard Portfolio owner works the Exchange companies and resorts to create the best vacations possible. The property owner uses low-maintenance properties and exchanges them for more expensive resort properties. This property owner also uses floating weeks at a favorite resort and reserves each year for the best time possible.

The Dartboard Portfolio usually consists of a “foundational resort” that may have cost more than other timeshare properties to acquire. We see many customers in the West using Hawaii properties as “foundational resorts”. They cost more, but they will be visited almost every year.

The portfolio is then filled in with trading properties. These are usually two- bedroom units that have low cost annual maintenance fees (typically under $400). These trading units are banked as early in the portfolio-building process. The Portfolio Owner then shops the exchange company for the possible best trade.

Factor in Your Available Vacation Time

There is no best portfolio; every person’s situation is different. However, we have noticed that portfolio owners keep a few factors in mind. The first factor they consider is available time.

They ask themselves several key questions:

*

How many weeks of vacation do they have each year?

*

How many vacation weeks can they actually take each year?

*

How many of these weeks do they travel between vacation sites?

In other words, how many vacation weeks does the portfolio owner need to stay home.

Here’s a suggested rule of thumb: use 50% of your available vacation time with a timeshare. As your vacation time increases, add additional timeshare weeks.

Estimate Your Cost

Cost is the second key factor. The type of portfolio you choose to build is affected by the cost of travel. If you live in the Midwest, are you ready to pay for yearly airfare to Hawaii? Would it make more sense to acquire a Caribbean timeshare for a little more money up front (but lower annual travel costs)?

You can also start with an Expressway Portfolio and transition to a Dartboard Portfolio. As your family matures, you can start to use your existing timeshare weeks more for trade. You may even want to create a hybrid portfolio with some properties at fixed locations to be kept over the long term and some are used solely for trading.

Focus on the Reward: More Control, More Fun

The best part of building a portfolio is the control you have over purchasing properties. When the right properties are purchased, the focus of your vacation is on the experience, not on the expense.

You spend your time enjoying wonderful places with family and friends &ndash and that’s the reason for owning timeshare properties in the first place.

For about the same money as it would cost to “rent” a few vacations in a nice hotel, accommodations can be owned forever in a deeded vacation timeshare condo that exchanges via computer to resorts virtually anywhere in the world!

Vacation timeshare is more popular than ever! The largest and most respected companies in the resort industry are now selling timeshare resort condos. Marriott and Disney have produced blistering sales statistics, among others. The fact that strong consumer legislation now governs the timeshare industry, combined with the fact that solid developers are now the rule, has given the timeshare industry the stability once only accorded to luxury hotels.

Why Does Vacation Timeshare Ownership make so much sense? (Four million owners 4800 resorts worldwide.

1. STAY WITHOUT PAYING: Timeshare owners are delighted when they check out at the end of their week’s stay, because their bill is ZERO! (And zero for the rest of their lives because they OWN their accommodation as deeded property!) The money saved here quickly pays back the low initial purchase price.

2. NOT JUST A HOTEL ROOM: As opposed to being a hotel room renter, enjoy status and fine treatment as a condo owner. It’s a much higher style of vacation. Condos are spacious, have kitchens and private bedrooms. Sleep up to 10 persons. Most resorts have great activities/tours all arranged and often free! Spend your time enjoying vacationing. Save the hours and hassle of planning, because it has already been done for you!

3. SAVE $100 PER DAY: Because the condos have kitchens, a family can easily save $100 a day by not dining in expensive restaurants for every meal. Stock-up the refrigerator and relax – it’s home!

4. NO EXTRA CHARGES: There is no charge for extra people like there would be in a hotel, and no extra costly occupancy taxes so common with hotels.

5. OWN, DON’T RENT: Owners can sell their interest whenever they want. Hotels obviously give NONE of your rent money back.

6. A GIFT OF LOVE TO HEIRS: Deeded timeshare owners can will their interest to their loved ones.

7. RECEIVE INCOME: Owners can rent-out their time rather than using it.

8. GIFTS FOR SPECIAL OCCASIONS: One of the most appreciated gifts you can give is that of a week at a luxurious resort. This is actually one of the biggest joys of timeshare ownership. It’s a great feeling to say to a loved one – “I’ve booked a week in a nice resort for you – go enjoy it!”

9. HOME RESORT BONUS USE: At their home resort, owners get first choice at unused time at true bargain owner rates for two and three day stays.

10. OWN ONE WEEK BUT USE MANY WEEKS PER YEAR: Timeshare owners have worldwide “Bonus Time” available. These are extra weeks (and weekend getaways) through the giant exchange companies. These weeks require no payment of maintenance fees, can be used often, and the rates are known to be unheard of bargains. Luxury and spaciousness at budget prices!

In summary, If you vacation, timeshare makes great financial sense while offering superb facilities. It also is the perfect means to help achieve the most important thing of all – sharing quality time with loved ones!

Since the product is so sound, it has withstood assaults by the scammers and marginal developers. It has reached maturity to the point that the major timeshare players from here on will be the Hiltons, Marriotts, Hyatts, etc. Timesharing works! Most people who own them love them. Not everyone, however, can keep them forever.

While the developers were pumping out virtually millions of new timeshares, no attention was paid to what happens when someone wants to or must resell them. Just now a method of resales is beginning to happen. Unfortunately it is way overdue. Prices fall in a market vacuum and when there was no system, people would try to sell their timeshares, fail, drop the price and fail again. What would stocks and bonds be worth if there were no New York Stock Exchange? The result was such that the pricing of timeshare resales fell to ridiculously low levels. Most resales now are priced at about a quarter of replacement value (75% off). Let’s face it. Timeshare resales represent one of the greatest consumer values anywhere today.

Does that mean that the public paid too much for the timeshares they bought from the developers? Not really. In my many years in the business there have been very few timeshare developers who really made a lot of money. Anyone developing a new project today must price it way up there just to recover his or her investment and hopefully make a reasonable profit. For one thing the cost of selling new product is very high. Remember all those free gifts you got when you went to the timeshare presentation? Guess what? They weren’t free. The cost was in the price. About half the price of new product went to sales and marketing costs. The second major factor was financing. The people who made the real money in timesharing were the lenders. The hotel chains do not have such high marketing costs due to economies of scale. Further, they in most cases do their own financing. If you have priced such product, you will find that it still goes for two to three times that of resales.

Unfortunately, some of the left over scammers from the original business saw another great opportunity, that of preying on the timeshare owners who needed to sell. The system was simple. They would call the owners of timeshares and say that they had their timeshares sold for a lot of money and would consummate the transaction as soon as they had received $350 or $500 or $3,000 up front. Needless to say, as soon as they had enough money, they would close down and move on to the next county where they would start the process over. They were hard to catch although some progress has been made recently and some of them (way too few) are now in prison. The simple solution for you to this problem is to just not pay front sales fees. You will be right most all of the time. The payment of nominal advertising fees is of course legitimate. Just as you would place an ad in the newspaper (doesn’t work for timeshare resales), some specialty advertising is necessary if you want to attempt to sell the timeshare yourself. Once you are over $100 for such services you are probably paying too much. As an example, one legitimate resale broker holds auctions. He charges up front for the auction hall and advertising because the auctioneer charges him those same fees.

People such as us saw a need to provide a legitimate method of resales. This timeshare sub-industry is just now in its infancy. So what will happen next? We have already seen it. As the resale industry becomes more efficient, it will exert more and more upward price pressure and the prices will go up! We have seen a major impact in the resorts in which we are involved. Most of the really low priced timeshares have already resold. It’s like harvesting apples. You shake the tree and pick up the apples. The next time you have to shake the tree harder. As the prices go up, two things will happen. The sellers will not have to take such a big loss and the buyers will not get such good deals. It seems that the public is starting to understand this. We have seen a great upsurge in the business in just the last few months.

As we tell potential sellers, as long as you are using the timeshare, renting it or otherwise achieving value out of it, there is no real downside to hanging on to it until the prices rise. On the other hand, if you are getting no use out of it, it’s like the retail business where the first markdown is the least costly. Whereas the price will go up, it’s highly unlikely it will go up faster than the buildup of homeowner’s dues and taxes. As a result, it’s better to just take your lumps and sell it as soon as you can.

On the other hand, if you are a potential buyer, don’t wait around! You can either obtain a timeshare now at these ridiculously low prices or you can wait and pay more later for the same thing. Your call.

Q:Who or What is TUG?

A:The Timeshare Users Group (TUG) is a web site operated by Bill Rogers and a group of volunteers who have a common interest in vacation timeshare ownership.

Q:I’ve read that this is a “not for profit” web site. Why is there a membership fee?

A:The membership fees pay for this site and all the associated costs of running the Timeshare Users Group ( phone bills, online fees, web site fees, domain registrations, postage, etc…..but no labor costs….we are an all volunteer organization.

Q:What are maintenance fees? And how much are they?

A:The cost of resort operation is spread among owners via an annual maintenance fee. The fee must also build up reserves to pay for non-recurring costs like furniture, appliances etc. that need periodic replacement and other capital costs as normal physical deterioration occurs. Cost is established by the developer or homeowners association. Caution: When a developer is in control, maintenance fees may be temporarily subsidized by the developer as a marketing tool while there is sales activity. After the homeowner association takes over, fees may quickly rise to unsubsidized levels.

Special assessments are sometimes added to maintenance fees to cover unexpected (non-reserved) expenses. These assessments are passed by the association board of directors. Severe storm damage would be an example where an extra assessment would apply.

Maintenance fees vary with the location and resort, but usually are in the $200 to $1000 per year range.

Q:Is buying a timeshare a good investment?

A:Timeshare ownership is an investment in quality vacations. Purchasers who buy a timeshare strictly for speculative reasons are usually disappointed as the resale market for timeshares does not appreciate as well or as fast as other real estate investments. As an investment in YOURSELF and your leisure time, a carefully researched timeshare purchase can be a good investment when compared to the cost of renting alternative comparable accommodations.

Q:If I decide to buy a timeshare, should I buy “new” from the developer or “used” as a resale?

A:All factors being equal, a resale from a previous owner or a resale company, will probably cost considerably less than buying direct from the developer. Deep discounts of 50% and more are not uncommon. There are instances where buying from a developer may be your only choice. Lack of a unit with the amenities, location or “extra” added programs like the Marriott point program might be a consideration to buy from a developer. Again, research your decision BEFORE you buy to secure the best deal for you. Where should you begin this research? I think you know the answer. Think “TUG”!

Q:Where is the best place to own a timeshare?

A:The answer can be as individual as each owner but the consensus answer falls into two categories based upon intended use.

If you intend to return to your resort frequently and exchange occasionally, your best choice is a resort you enjoy often.

If your primary intent is to maximize trade value and you do not intend to stay at your own resort very often, then you should buy at a resort which is in high demand.

While there is no single “best” choice, the current consensus of opinion says that Hawaii and coastal California are two easy choices that will produce top results.

There are many variables that would apply to any particular choice and a potential buyer is strongly advised to research factors that affect timeshare trade values before making a final choice. A membership in TUG that provides access to the resort ratings and reviews is an excellent place to start.

Q:Fixed week .vs. floating week ownership, what are they and which is better?

A:Fixed week ownership means that you have the right to occupy (or have available for trade or rent) a specific week and unit number at the resort you own every year.

Floating (sometimes referred to as flex) ownership means that even though you may be deeded a specific week and unit number, you have no use claim on that week or unit. Instead you have the opportunity to request a week within a specified range of weeks during the year. The range of weeks available for flex use is set by the resort and is the same range of weeks from year to year.

Advantages of owning a fixed week: You are guaranteed the week and unit you want every year (especially applicable to colder climate owners who want to vacation where it is warm in winter).

Advantages of owning a floating week: For those who are concerned about unforeseen work or schedule conflicts associated with a fixed week, floating time allows for additional planning options.

There are more implications with either type ownership especially as it applies to trading and vacation planning. A prospective timeshare owner is urged to examine the differences and make a choice to match the situation before purchasing.

Q:What is a bonus week and how can I get one?

A:The simple answer is that a bonus week is an “extra” week in addition to the one you own. It’s given or sold as an incentive to timeshare owners for a specific reason.

A Developer Bonus Week (DBW) is available to members who own at participating resort. These bonus weeks are issued directly from the resort. They are sometimes issued as a signing bonus upon the purchase of a timeshare interval . Owners can sometimes purchase them from the resort as unsold developer owned weeks.

A second type of bonus week is one issued by an exchange company. Owners of high demand resort weeks receive them as incentives to deposit their timeshare week.

Bonus weeks are sometimes referred to as “Vacation Escape” weeks, “Getaway” weeks (or weekends). They are available to members of exchange companies like RCI, II and SFX. The exchange company makes bonus weeks available for purchase by members for a nominal fee. Purchased bonus weeks are considered “excess inventory” likely to go unused. Excess inventory is determined by the historical number of deposits versus the number of requests for each particular resort.

Bonus weeks usually come with expiration dates and may have other use restrictions relating to location, season and holidays.

Q:Which exchange company is best?

A:This is a “Coke vs Pepsi” question but it may be a moot point. The resort you own is probably affiliated with only one exchange company. There are, however, a few resorts affiliated with both. Do not let the resort’s affiliation affect your decision to own or buy at the resort. Although there are preferences among people who have experience with both major exchange companies, there is no unanimous opinion that one is better than the other.

It should be noted that there are more than the two BIG exchange companies. TUG maintains a comprehensive list of timeshare exchange companies.

Q:If I deposit my week with an exchange company, does someone need to “take” it before I can request my desired week?

A:No. As soon as your week is deposited, you can request and get the week you want if it is available.

Q:I was contacted by company “X” offering to buy/sell/rent my timeshare for a fee. Can I expect them to do a good job?

A:Past experience by members and visitors to TUG have been unanimous in this regard. Never pay an upfront fee as a condition to buy, sell or rent your timeshare. This situation is probably the most common situation where an owner will probably be dissatisfied. ANY fee required before performance will probably be lost. These “fees” come disguised as “agent commissions”, “appraisal fee”, “advertising fee”, etc. etc. They all have one thing in common. The money is always requested before performance is complete. Some of the more notorious companies preying on timeshare owners desperate to sell their timeshare will have the words “bank”, “trust”, “investment” in their company title. This is in an attempt to instill a feeling of confidence in their target. Do not be a victim. Verify the credentials and performance of any company making this type of offer.

If necessary we strongly suggest dealing only with an agent who works on commission from proceeds of sale. Failing that, there are experienced TUG members willing to offer advice on the “how to’s” of selling your timeshare. Visit the TUG BBS and start asking questions.

Q:I am an RCI member. Can I transfer weeks to other RCI members?

A:Reply from RCI:

The form in the back of the RCI Directory, Membership Transfer Application, is mainly used for the sale of timeshare, but also for transfer of weeks. The most important parts of the document are the areas which indicate your account information, the week you want trasferred, and to what account it’s going to. As long as we have that information along with your signature, it should be taken care of. That information can also be listed in a signed letter if you prefer. Once the information is completed, you can fax it to us at 317/805-9335 if you wish. Hope this helps. Thanks for visiting our website. Darrin Goodwin, RCI Internet Team.

Q:Since a timeshare accommodation usually has more facilities than a hotel room, are there any additional items I should consider bringing on my timeshare vacation?

A:Most timeshare accommodations have cooking and laundry facilities. While it certainly isn’t necessary to pack anything more than you normally would for the typical vacation, some TUGGERS seem to be a different breed. Take a look at the A.R. Timeshare Checklist and then decide for yourself. (I’ll let you decide for what the “A.R.” stands for)

Q:Are there any tax advantages or disadvantages to owning a timeshare?

A:Good question. Since I don’t even do my own taxes, I’ll refer you to TUG’s expert Timeshare and Taxes advice page to answer your question.

Q:What is the downside to owning a timeshare?

A: * You must continue to pay the yearly maintenance fee, which can increase over the lifetime of the resort, whether you use it or not.

* You could be required to pay additional “special assessments” arising from unexpected costs of maintaining or repairing the resort.

* Some people feel that owning a timeshare requires excessive advanced planning in attempts to reserve a popular floating week or to obtain a good exchange week. Planning a timeshare vacation a year in advance is not unusual.

* The majority of concerns with timeshare ownership seems to center around dealing with cost and interaction with exchange companies. It’s often not the straightforward process the timeshare sales staff would have you believe.

The first question is, should you really sell in the first place? We find many potential sellers who want to sell for the wrong reasons. They can’t get the reservations they want, are unsuccessful trading their time through the exchange companies, can’t get the property rented or similar such problems. This tells us they probably don’t understand just how to get the most out of their timeshare. Timesharing is an interactive sport. The more you learn about how to use it and the more attention you pay to making reservations at the right time, banking your time, etc. the more you will get back. If this is the problem it might be better to spend some time with the resort staff to find out how to make it work than to give up and sell it. In numerous cases we have given tips to our customers on how to achieve results and had them come back later and express their happiness that they didn’t sell. On the other hand, there are some legitimate reasons for selling. If this is the case then this information will help you.

Suppose you lived in a 100 unit condo property all of which were absolutely identical. Let’s also say that the current market values were $150,000. If you said, “I will sell, but I want $250,000″, what do you think would happen? Right!! You would sit and wait and wonder why your condo didn’t move. Furthermore, it wouldn’t move until you adjusted the price to the current market level. Resale timeshare buyers are not dumb. They know they can steal these units on the secondary market and there is no way they are going to pay more than that. If your price is too high you simply will not sell it.

Another complaint we hear when we quote current market values is “I can’t take that kind of loss. I paid a lot more than that for it.” One time a banker said that to me. He said, “The bank has a lot more than that in it and can’t take that kind of loss.” I told him that the bank had already taken that kind of loss, the only question was when he was going to recognize it. It sounds brutal to say, “I don’t care what you paid for it”, but that is what the buyers do say. Resales do not sell for the original developer price. Does that mean you paid too much to begin with? Probably not. There are not a lot of developers who have become rich in timesharing. Many have even left the field. Chances are what you paid originally just covered the developer’s cost, and the marketing (50% of the price). Remember all those “free gifts”? Guess what? They weren’t really free.

Why this low pricing? Until recently, there wasn’t a good marketing system for resales. What would stocks be worth if there were no New York Stock Exchange? Same problem. In the long haul, we believe resale prices should rise as the current levels present incredible values to the buyer. How long will it take? Who knows? In the meantime, your resale had better be priced right or it simply won’t move.

How do we price it right? The same as with condos, you need to determine the comparative market values (comps). For what price has similar timesharing property been selling (closing)? The best source for this information is your licensed resale broker. The next best source is title companies. As time goes by, this information will become easier to come by. Your property manager might have some ideas as to values. If you follow Timesharing Today over time, you could call some previous sellers whose ads no longer appear and find out if and for how much they sold. That brings us to Rule 1: Your resale timeshare must be priced right (at the going market price).

The general lack of liquidity in the resale business has given rise to a new cottage industry known as the “Timeshare Resale Scam”. In this scenario, you as a potential seller get a call saying, “We can sell your week if you will just send us $350, $500, $2,000″ (your choice). If it will make you feel any better, I got hooked on this years ago myself. I sent them $350 and they put an ad in the local shopping news (on the other side of the country) at a cost of $9. The results were just as you might suspect: nothing.

Some of the frauds such as the recent Oscar Bradley scam (see Timesharing Today issue #30, Nov/Dec, 1996) were very elaborate. In that one, they would say they had the $4,000 value timeshare sold “to an offshore buyer” for $16,000. To guarantee the sale closing within a year you could buy an insurance policy with the British Guarantee Company for $2,000 to $4,000 (whatever they could get). They invited you to check them out by calling “The Timeshare Advisory Council” at an 800 number they would give you. Of course, that was Bernie down at the other end of their boiler room. Sadly, they fleeced a number of timeshare owners before they were driven out of the country. Lately we understand they are continuing the same scam by phoning from England where they are supposedly beyond the reach of the FBI. Their former leader is now in prison.

One of the latest variations of this scam is the “need” for a resale appraisal. They claim that this is necessary because their “lenders” require it. These frauds tend to originate in Florida where there is now a law against front fees for resales. The appraisals are priced at $300 up (Ridiculous). Some of these “Resale Brokers” will give you a list of several appraisers who are acceptable. Some are even offered by respectable national franchisees. Question: Why would their “lenders” need an appraisal before the buyer has even asked for a loan (Most don’t)? The bottom line is that you will be relieved of your money without the production of any acceptable results.

The old saying of “Why buy the cow if the milk is free?” certainly applies here. Why would you pay a listing or “appraisal” (“advance “or “front”) fee when it is unnecessary? Would you pay a broker to list your condo? Of course not. Just shop around until you find a broker who will work on a straight commission. Once you have sent a front fee the incentive to produce drops dramatically (to zero). It is not uncommon for you to be told not to call again to check on your “listing”. Not to say all advance fee deals are frauds, just most of them. If you say no to all, you will be right most of the time. And that brings to Rule 2: Don’t pay any kind of fee to list your timeshare for sale. This is particularly true if the agent is in a different state from the property or says, “We are an advertising agency, not a broker”. Listing a timeshare normally requires a Real Estate License in the state in which the property is located. If they don’t have one, beware!

This is an attempt to give you some ideas about cautions you should exercise and maybe even some thinking about whether it is such a good idea to take on all these responsibilities yourself. There are some good reasons for having a Licensed Broker or other real estate professional involved. It is not, however an absolute requirement. There may be some people who would take out their own appendix. Now you know where I am coming from and that I am unabashedly biased in terms of involving a professional when it makes sense.

Your friend Joe hasn’t been able to use his week at your resort for several years and has decided (correctly) that he should sell it. His price is reasonable and you agree to buy it. Your first step is to make sure Joe owns it. Don’t make the mistake of thinking he is such a good guy he wouldn’t lie to you. He may be absolutely honest, but we have just had so many cases where people were confused about what they owned, how it worked and what name they had used to acquire it. They may have forgotten that they put it into a trust or believe it really doesn’t matter that they did. If the paper work isn’t correct you might just as well have a deed to the Brooklyn Bridge. Fortunately, you don’t have to accuse Joe of lying to you (chances are he is giving you the best information he has). Just ask to see his documentation. He should be able to produce his Grant, Warranty or Quit Claim Deed, mortgage papers, the CC& R’s to the property, the most recent tax bill, the dues bill, etc. In addition, ask him if he has put the title into a trust or otherwise conveyed it elsewhere. The most common problem is that they will add their four kids (so the kids can call for reservations) to the Deed and record it. In most cases that creates a title nightmare all of which must be unraveled. It can also be indicative of more problems if you know what to look for. If not, it is probably time to bring in a professional, as you probably will sooner or later.

Next, call the resort and determine the dues status. It is not uncommon that people have not paid the most recent dues or even several of them. The minute you take title, all those bills Joe didn’t pay become yours. Congrat-ulations.

If taxes are collected directly from the timeshare Owner rather than through the Association, next call the Tax Collector for the county where the resort is located. Determine that the taxes have all been paid up to date. Many times this is an automated voice mail system and you can usually get an answer within a half-hour or so. You must have the Assessor’s Parcel Number from the tax bill to be able to do this.

How about the status of the exchange? Does he have weeks banked? Who is going to pay for the exchange fees? Does Joe want to give you the remaining Exchange Company membership or do you want to buy it? The Exchange Companies will not divulge Member information unless you pose as the Member and give them your Member Number. Hopefully this is part of the information you got from Joe.

Are you going to use an escrow? How about Title Insurance? Who is going to pay for these? In Southern California the Seller normally pays for the Title Insurance, but in Northern California the Buyer normally pays. These customs vary from state to state and even within a state. What is normal where you live? Should you even bother with Title Insurance? As a broker we won’t sell a property without it, but if you were only paying $500 for the timeshare title insurance would not be worth it. You are better off just self-insuring and if you lose, you didn’t lose much.

If a loan is required by the Buyer to satisfy the cash demanded by the Seller it must be obtained. There are lenders specializing in timeshare re-sale financing. Another alternate is that the Seller may be willing to take back a note as part of the purchase price. These need to be correctly drafted within the laws of the county and state where the property is located. Now what steps are required to protect the Seller against non-payment by the Buyer? All this gets pretty involved and is probably best accomplished by an escrow, para-legal, attorney, real estate broker or other professional. There are many pitfalls to doing these things yourself and then having them go wrong, the least of which is that you could be sued for more than the purchase price.

Assuming you still want to keep trying to take out your own appendix or that you simply can’t find a reputable broker who handles that property, your next step will be to order the TimeSharing Today Document Kit. Although it is generalized to cover all states (and probably beyond) it provides an effective checklist of issues which should be covered. It also provides adequate documentation to start the process. Also contained is a generous supply of forms and letters that may be used. It will guide you along the lines of what should be considered and provide you a purchase and sale document. Even this Do it Yourself kit recommends that you hire some professional help at this point whether it be a real estate broker, an attorney, a title agent or an escrow agent to handle the intricacies of closing. This is similar to doing your own tax return. Are you really taking all the deductions to which you are entitled? Are you setting yourself up for an audit? Good professionals usually pay for themselves. We all recommend that you do not handle the whole thing yourself. Too much specialized knowledge is required.

Now that you have done your homework, if you decided to forego escrow and title insurance, your next step will be draw a deed, get it signed and notarized by the Seller and swap the deed to the timeshare for a check for the money you agreed to pay. If the deed is incorrectly drawn or the check is no good, one or both parties may be out in the cold. As you can see, the licensed broker or professional does earn his or her fee.

After you have closed the deal, there is still much to be accomplished. The resort must be notified. In most cases the resort Management Company will charge a fee to make the changes in their records resulting from the transfer. The same is true of the Tax Collector and exchange companies.

Let’s say you have now decided against doing it yourself and plan to hire a broker. Here are the rules:

As a Seller, never ever pay a front, listing, appraisal or any other advance fee. As has been discussed here many times, this is almost always a clear signal of an impending rip-off. Check out the proposed professional. Are they licensed in the state where the property is located? Are they with the Better Business Bureau? Does the resort know of them? Can they give you referrals? What do the referrals say?

As a Buyer, insist on getting someone that really knows what they are doing involved in the details. Do the same checking on them that is recommended above for the Seller. You are better off bringing in this person relatively early in the process. (Say right after you have agreed on what the transaction should be). Discuss professional fees beforehand. Realize that if you choose to go without any professional help at all you may have saved money on the appendix operation, but the patient died.