What is Timeshare Exiting?
Timeshare exiting is the process of getting out of your timeshare and stopping your future maintenance fees. Exiting a timeshare is not the same as selling a timeshare. When you exit a timeshare, you should not expect to receive any proceeds from a sale. Instead, you should expect to pay a team of specialists and/or lawyers to help you get rid of the timeshare and stop future fees.
Why Timeshares Lose Value
Timeshare is not similar to traditional real estate because it does not typically go up in value over time. In fact, in some states such as Florida, it is illegal for a timeshare salesperson to claim a timeshare is similar to real estate because it simply isn’t true. Most timeshares lose almost all of their value the moment they are purchased.
A majority of the cost of the timeshare is made up from the cost of the free gifts offered to you to lure you in to the presentation and the commission of the salesperson that sold you the timeshare. The cost of the timeshare does not typically reflect the value of the product you are receiving. This is why the price of the timeshare will typically be much higher at the start of the sales presentation but then decrease drastically by the end of the presentation. The salespeople are just making up the price as they go along and trying to extract as much money from you as possible. Never trust a salesperson who works on commission. They do not have your best interests in mind.
Common Lies Told by Timeshare Salespeople
If any of the following lies were told to you during the sales presentation, you may be a good candidate for a timeshare exit company.
- You can rent the timeshare out for a profit
Some timeshare salespeople tell prospective buyers that the timeshare can be rented out for a profit, but this is usually much more difficult than the salesperson makes it seem. First of all, many resorts simply won’t let you rent the timeshare out. Secondly, even if you are able to find a renter, there are usually fees involved to rent it out that make the entire process a huge waste of time.
We’ve also heard stories of timeshare owners renting their units out, and then being hit with several additional fees due to the renter causing damage to the unit.
Lastly, you’ll likely need to pay fees to a site like Redweek or Craigslist to advertise the timeshare for rent.
- You can sell the timeshare later when you no longer want it
Many timeshares have gained a poor reputation over time, and that poor reputation has made it even more difficult to sell the timeshares on the resale market, even for $1. This is why many timeshare developers refer to their products as “vacation ownership” in 2021 rather than “timeshare.” Even if you can sell the timeshare, it likely won’t be for much more than a $1. Many owners can’t even give their timeshares away for free!
Additionally, if you’d like to sell the timeshare, you’re likely going to need to pay additional fees to a site like Redweek, Craigsist or Ebay to advertise it. If you are able to find a buyer, you’ll likely need to pay closing costs and transfer fees to your resort as well.
- If you buy our timeshare, we’ll buy your other timeshare
We’ve heard of this lie being told by salespeople in Mexico more than in the USA, but we’ve heard from several owners that this is what they were told when buying the timeshare. Timeshare resorts aren’t in the business of buying your other timeshare. They’re in the business of selling as many of their own timeshares as possible.
- Timeshares are a good investment
This is one of the worst lies in the timeshare industry. A timeshare is never a good investment because almost all timeshares lose almost all of their value the moment they are purchased.
- You will be able to use the timeshare whenever you want
This despicable lie is commonly told verbally during the sales presentation and rarely ever appears in a contract. A salesperson may promise that you can book the timeshare during the high season, but when you go to do it, you’ll find that the dates are unavailable. Ironically, those high season dates will likely be available on sites like Expedia for non-owners to book. This is because resorts can make a lot more money from non-owners who aren’t already obligated to pay them regardless of if they’re able to book during the high season or not.
Timeshare Exit vs Timeshare Resale
Most timeshare owners that pursue a timeshare exit service have first tried to sell their timeshare or give it back to their resort unsuccessfully. It can be extremely difficult to sell a timeshare on the resale market because there are so many already available for sale online on sites like Ebay for $1.
Some owners have found success with selling their timeshare through a timeshare resale broker, but these brokers will typically only work with high-value timeshares because they work on commission. If your timeshare is only worth $1, a timeshare broker won’t have much interest in working with you because their commission will be too low. It is illegal in most states for a timeshare resale broker to charge an up-front fee, which is why the commission structure is used for a broker’s compensation.
Timeshare Exit Scams
When shopping around for timeshare exit solutions there are a few things to keep in mind:
- Make sure the company you’re considering has some sort of money-back guarantee or escrow payment option. A company that offers a low up-front fee escrow payment option is your safest bet, but not a lot of companies offer this payment option.
- Avoid companies that do not have an online presence. If the company doesn’t have a website, it’s likely a scam. Online ratings and reviews of timeshare exit companies can help with this research.
- Avoid companies with a poor BBB rating or no rating.
- Avoid companies that do not have a track record of successfully getting timeshare owners out of their contract.
- Always get everything in writing!
- Always shop around.
Timeshare exit companies operate in various ways. Some require paying up-front and others allow you to pay a portion of the cost of the service with a low up-front fee escrow payment option. Not all companies that require paying up-front are a scam, but you need to be careful because some exit companies in the past have taken customer’s money up-front and then never cancelled the timeshare. This is why we like to recommend the escrow payment option when working with a timeshare exit company.
Timeshare Exit Cost
There are a lot of timeshare exit attorneys and companies out there and some may be significantly cheaper than others. Some may charge $10,000 while others only $4,000. No timeshare exit company will give you a price for your timeshare exit until you go through a free consult. The lawyer or timeshare exit company must assess your situation and determine how much work it is going to take to get you out of your timeshare.
