As a former owner of two time shares from my younger, ignorant years, I am stunned by the latest statistics on the industry and the poor owners who are trying to sell theirs for $1. My guess is that some would pay to get the property off their hands.
Here are some of the latest statistics put together by Smart Money:
“To make up for these losses, resorts have been increasing the maintenance fees on the individuals who continue to use their timeshares. Average annual maintenance costs hit an all-time high of $731 in 2010, up more than 8% from the year prior, according to the latest data from the American Resort Development Association. Experts say those costs are still rising. And for some owners, they’re a big reason to sell, says Lisa Ann Schreier, director of Timeshare Insights, a consultant to timeshare buyers and sellers.”
Up to 48% of timeshare owners are behind on their annual maintenance payments by at least a year – up from 37% in 2007, according to TimeshareResortCollections.com, the major collector for these debts.
“While real estate – and even vacation real estate – is starting to show signs of recovery, timeshares remain in freefall. During the first quarter, the number of for-sale-by-owner postings doubled compared to the same period a year ago on RedWeek.com, a popular resale site. Another site, SellMyTimeshareNow.com, says owner sales are up 20% during that period.”
Be careful of companies offering to sell your time share, especially when they want money up front. You will just get ripped off.
Also keep in mind, when you buy a condo from the owner you will have to pay closing fees to an attorney, similar to buying a house.
It cost me $3500 to unload my timeshare but it was worth it. This was after getting ripped off twice by companies that told me they would sell it for X dollars up front. The whole industry is dirty.