Is this a timeshare scam?
April 10, 2010 8:59 PM Subscribe
My in-laws are trying to sell their timeshare. Are they being scammed?
My in-laws mentioned tonight that they've tried three different "agencies" to sell their timeshare, and have spent $2,500 in upfront commissions. As I understand it, they believe that they must pay an agent upfront, and that the agent will then sell the timeshare. I believe they've already given up on two agents, and were trying a third this afternoon.
This just doesn't make any sense to me. What motivation would an agent have to put any effort into the sale, if they've received the commission up front?
In fact, from what googling I've done, this does seem to be a scam. However, all the sites that I've found discussing timeshares seem, well, scammy. And I suppose I'm biased against timeshares in general.
So...if you know anything about how these work (and I really don't, because I've never been interested in listening to a sales pitch): Is there any chance that this upfront commission approach is legitimate? Do people really sell timeshares this way? Can you point me towards any reputable sources of info on timeshares? Or any relevant articles/tips that I can send on to my in-laws?
My in-laws mentioned tonight that they've tried three different "agencies" to sell their timeshare, and have spent $2,500 in upfront commissions. As I understand it, they believe that they must pay an agent upfront, and that the agent will then sell the timeshare. I believe they've already given up on two agents, and were trying a third this afternoon.
This just doesn't make any sense to me. What motivation would an agent have to put any effort into the sale, if they've received the commission up front?
In fact, from what googling I've done, this does seem to be a scam. However, all the sites that I've found discussing timeshares seem, well, scammy. And I suppose I'm biased against timeshares in general.
So...if you know anything about how these work (and I really don't, because I've never been interested in listening to a sales pitch): Is there any chance that this upfront commission approach is legitimate? Do people really sell timeshares this way? Can you point me towards any reputable sources of info on timeshares? Or any relevant articles/tips that I can send on to my in-laws?
Response by poster: Yeah, it seems obvious to me too. I was just hoping I was wrong.
posted by Badmichelle at 9:57 PM on April 10, 2010
posted by Badmichelle at 9:57 PM on April 10, 2010
Scam. The commission is a percentage (or effect of, if a flat fee) of the sale value. If there's no sale, there's no value.
They wouldn't tip their waiter/waitress up front, would they?
posted by secret about box at 12:58 AM on April 11, 2010
They wouldn't tip their waiter/waitress up front, would they?
posted by secret about box at 12:58 AM on April 11, 2010
Response by poster: If anyone comes across this looking for info on timeshare resales, here are a few links I've found:
- Site from what looks to be a legitimate, licensed broker, listing scams
- Newsweek article on the topic
- eBay guide on how to sell timeshares
- USA Today article on the topic
- Timeshare user group, with info on how to sell timeshares, and info on scams.
My in-laws are Canadian, and I haven't found any specifically Canadian info yet. However, I'm positive they're being scammed. Drat.
posted by Badmichelle at 7:59 AM on April 11, 2010
- Site from what looks to be a legitimate, licensed broker, listing scams
- Newsweek article on the topic
- eBay guide on how to sell timeshares
- USA Today article on the topic
- Timeshare user group, with info on how to sell timeshares, and info on scams.
My in-laws are Canadian, and I haven't found any specifically Canadian info yet. However, I'm positive they're being scammed. Drat.
posted by Badmichelle at 7:59 AM on April 11, 2010
People often have trouble giving timeshares away, much less selling them.
posted by smackfu at 8:46 AM on April 11, 2010
posted by smackfu at 8:46 AM on April 11, 2010
I know that in one company, when trying to sell you a "vacation club" membership (it's like timeshare, but you don't own anything!), they will offer to "sell" your timeshare for you for a nominal fee. The reason they offer this is because no one can sell their timeshare, or as mentioned even give it away most of the time.
posted by shinynewnick at 8:50 PM on April 11, 2010
posted by shinynewnick at 8:50 PM on April 11, 2010
Response by poster: Yes. It was a scam. And: they're still in denial about it.
posted by Badmichelle at 7:18 AM on May 15, 2010
posted by Badmichelle at 7:18 AM on May 15, 2010
This thread is closed to new comments.
posted by bshort at 9:50 PM on April 10, 2010