Thursday, February 5, 2015

The Reson You Can't Sell Your Timeshare


Hello Timeshare Owners.  My name is Uri Fried.  I am the founder (now retired) of The Timeshare Company, LLC, a company dedicated to rescuing desperate timeshare owners looking to unburden themselves from the endless financial liabilities of their timeshare interval ownership.  But not only did I start this company, I am the creator of the timeshare disposal industry itself. 

Back in the mid 1990’s, when our kids were small, we owned a couple of weeks of timeshare.  They weren’t what they were cracked up to be but we made them work and took our boys on several nice vacations.  Once the boys were a bit older they no longer wanted to vacation with mom and dad.  That’s when our timeshares no longer worked for our family. 

Well, just like you, it didn’t take me long to realize that ‘selling’ my timeshare was virtually impossible.  Can you imagine?  I paid a lot of money for those timeshares.  Two weeks in a Florida resort right on the beach.  I tried everything, spent a lot of money on ads and even got scammed once by one of those off-shore outfits.   I couldn’t even give them away.  My sons didn’t want them.  My relatives didn’t want them.  I even offered to donate them to a couple of local churches, but even they didn’t want them.  Turns out they didn’t want the financial burden that came with the timeshares.  I can’t blame them. 

Well, I came to find out that I’m not alone.  A little light reading on the internet was all I needed to realize that there were literally millions of timeshare owners in the same boat.  That’s right…millions.  Did you know that it is estimated that more than half of all the timeshare owners in the United States no longer want their timeshares? Turns out that the majority of us simply don’t use our timeshares, can’t seem to get rid of them, yet are stuck paying those ever increasing annual maintenance fees, taxes, and special assessments. 

It wasn’t until my wife and I were making out our wills that the attorney asked us who we wanted to inherit our timeshares.  It turns out that even upon our deaths, someone has to take on the burden of our timeshares.  They just don’t magically disappear or float off into the sunset.  For me that was the straw that broke the camel’s back.  I couldn’t stand the idea that one or both of my sons would be burdened by these two ‘mistakes’ that my wife and I made. 

That was the beginning of a two-year process that led to me starting this company.  We started by disposing of timeshares in one resort at a time, one state at a time and then one country at a time.  Today we dispose of timeshares all over the United States, Mexico, the Caribbean, and many countries around the world.

While the company I founded continues to be the leader in the industry, I’ve since retired.  While I should be spending every waking moment trying to improve my ghastly golf scores, my aging body just won’t allow me more than a few hours each week.  So, I’ve decided to try my hand at another item on my bucket list…..Writing.   They say the best writers write about what they know, so I’ve decided to write about timeshare ownership and why it’s seemingly impossible to dispose of something that one would think should have great value.

Think about it.  You pay thousands and thousands of dollars for a share of real estate.  The real estate sits in a popular resort/vacation destination in Florida or Hawaii or California, etc.  As a rule, property values in these vacation areas are generally higher than in most other locations and typically increase over time.  When one buys a vacation home one expects to be able to sell that home years later for at least the price they paid and usually for much more.  So here’s the $64,000 question.  How is it that an owner of a timeshare, say on the beach in Hawaii, who paid perhaps $40,000 (about the average in Hawaii) for that timeshare, can’t find a buyer for that same timeshare ten years later?  Not only can’t he find a buyer to pay him even a single dollar ($1), he can’t even GIVE it away for free.  Even charities won’t take it.  Those same charities will accept your old junker car as a donation. They’ll take your boat too.  But not your $40,000 timeshare.  Why? The answer is simple. 

Back in the days when the concept of ‘Timeshare’ was new, people believed what the marketers told them…that timesharing was the greatest thing to come along since sliced bread.  Timesharing was the future of vacationing.  It would give you and your family million-dollar vacations for pennies.  You were buying real estate and real estate always increases in value over the years which meant that once you were done using it you could sell your timeshare real estate for more than you paid for it.  The developers spent Billions spreading that around and millions of unwitting people, many of them quite smart people like doctors, lawyers, engineers, and the like, literally bought into it.  Now let’s fast-forward about thirty years.  Today, millions of timeshare owners have experienced the real truth about timeshare ownership and the ability to ‘sell’ it when you’re done with it. 

While there are actually many reasons why it’s almost impossible to sell your timeshare, the number one reason is that the developers of timeshare resorts never developed a ‘resale’ vehicle by which timeshare owners could divest themselves of a timeshare they no longer wanted.  It’s tough enough for a developer to sell his own timeshares; he definitely does not want or need the competition of a resale market.  Even after fifty years of timeshares in America, timesharing has still not become a mainstream must-have item such as a car, a cell phone, a home, etc.  These are all things that as we grow up we learn that they are the must-have’s of life.  Even life insurance has become one of life’s must-have’s.  As few as thirty years ago life insurance agencies were calling you up and offering you a set of free steak knives if you would allow them into your home to tell you about their life insurance policies.  Today, most people know that once they are married, or have a child, or buy a home, it’s time to buy life insurance.  The insurance companies were successful getting us there.   However, as much as they tried, timeshare developers were not able to get timeshare ownership to become one of life’s must-have’s.  To this day, developers still need to lure customers into take a timeshare tour by offering valuable gifts.  In most cases these gifts are very expensive.  Televisions, Computers, tickets to DisneyWorld, and even luxury vacations and cruises are just some of the lavish prizes one is promised just for listening to a timeshare presentation.  And because developers sell a timeshare to about one out of ten ‘tours’, they give away thousands of dollars in prizes to get that one sale. On top of the cost of prizes there are commissions to highly trained sales people, marketing costs, overhead, not to mention the cost of building the resort itself.  Building and selling timeshares is a very expensive proposition for developers.  Potential Timeshare buyers are a very small percentage of the population and developers simply do not want or need the competition of resale timeshares.  And because the general public does not actively seek out timeshares for purchase (remember, they need to be ‘lured’), resale businesses have not popped up.  Don’t get me wrong.  Over the years there have been a few brave souls that have opened timeshare resale offices with the thinking that “If you build it they will come”.  Unfortunately, those misguided shopkeepers learned very quickly that the only people that came were the timeshare owners who wanted OUT, but not people who wanted to buy in.  No sales.  No money.  No business. 

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