Reselling timeshares requires owners? caution

Owners of vacation timeshares the use of vacation homes for a limited, pre-planned time should be cautious of bogus resale companies who take advantage of anxious sellers in an overcrowded market, according to a press release from the Council of Better Business Bureaus.

Unscrupulous companies typically contact timeshare owners by phone, mail or the Internet asking them to call a phone number about their timeshares. The salesperson may claim that the market is "hot" for resales, when in fact the market varies considerably depending on location and the prime season for a particular unit.

For an advance fee of about $300 to $700, some salespeople promise to sell a timeshare for a price equal to or greater than its purchase price. They may claim to have a list of sales agents and potential buyers. While the seller may possess these lists, it is unlikely the parties are interested buyers, the release stated. Salespeople also may promise a money-back guarantee or government bond, should they ultimately be unable to sell a particular timeshare in a specific amount of time.

However, according to the council, in the end some owners have found that their timeshares did not sell, their fees were not returned and they were given a bond worth as little as $60 to $70. For owners considering reselling their timeshares, the Council of Better Business Bureaus offers the following tips:

Do not agree to anything over the telephone until you have had a chance to check out the company.

Ask the salesperson to send written materials, including references, with ad-dress and phone number.

Ask where the company is located and in what states it does business.

Ask if the company's salespeople are licensed to sell real estate where your timeshare is located. If so, verify this with the state licensing board.

Does the company charge a commission, handle the entire closing and provide escrow services? Do they charge an up-front listing or advertising fee? What does it cover and is it refundable?

Be wary of companies charging an advance "appraisal" fee for services.

Contact the Better Business Bureau, which has its Web site at www.bbb.org, the state Attorney General's Office, and local consumer protection agencies in the state where the company is located to find out if complaints have been lodged against the company.

There are other resale options.

Try selling the timeshares by placing an ad in a newspaper or magazine, or by contacting a real estate agent familiar with the area.

For timeshare owners whose property is in a development where all other units have been sold, owners can ask the developer to consider establishing an on-site resale office.

Another option might be the use of an exchange program.

For a fee, these programs allow timeshare owners to arrange trades with other resort units in different locations, the release stated.