Talking people out of TS Purchase At Resort

[Sue S Senior Member Find all posts View Profile Close Sue S]

A few years ago I was sitting by the pool at a lovely resort in Spain amusing myself by listening to the timeshare selling going on around me. What failed to amuse was when I heard an elderly couple being told that "investing" their pension savings would be a good move. The salesperson said that they "couldn't guarantee that their investment would go up" but that they'd definitely get their money back!

I tried really hard to get that couple on their own but the salesperson stuck to them like a leech! I still feel guilty that I just didn't speak up...

[Jimbo Senior Member Find all posts View Profile Close Jimbo]

I've stayed at a number of Marriott timeshares, own there in fact, and they do give such helpful hints. I've gotten handouts, heard from both II and Marriott reps on trading via II. All that you talk about. At most there has been free coffee and breakfast danishes.

So, there are companies that are offering this service and it goes real well with making me a happy customer. Every year I would go, I would learn something new.

If someone starts to talk to me, asks me questions. I will answer honestly. My last encounter was at Westgate Vacation Villas. Told him to look at ebay on any given day and see what they are selling for (disregard the 5,000 -10,000 listing by power people). I also will tell them that I bought my first one from Westgate and I paid $6K for a 2 bedroom and that was my worst purchase of all my timeshares. However, I do add that timesharing is great and wonderful, if you learn how to use your timeshare and the only thing that salespeople say that is the truth is that it will make you vacation (if you take the time to learn).

I wouldnt have such a problem with developers if they would teach thier sales staff or other employees how to educate the buyers after they bought. Say for example, when I would go back to Westgate the next year, if instead of saying "You need to come to a maintenance meeting" and infact it is another salesmeeting wanting me to upgrade or buy another week. They spend time answering questions about how to use my timeshare better. How to get good trades. I guess thats rather dreaming, cant make any money off that but might get more referrals.

[1950bing Senior Member Find all posts View Profile Close 1950bing]

I have talked to several couples that seeked me out. It usually starts out with, " Do you own a timeshare here ?" I would never tell anyone not to buy because it could turn out to be the best thing for them.
I do however explain things to them that I went through. Things the salesman failed to tell them and to make things clear. Divide the lies from the truth. Inform them of SAs and constant increasing maint. fees and new fees that will come along. Club fees,how difficult they are to grt rid of. What can happen to their family if the owner should pass away while owning. I end up with telling them that timeshares is only one way to spend vacation money. They are not for everyone.

[dw24 Member Find all posts View Profile Close dw24]

you're right, it could be the best thing for them. ts is great. It is going to be great for my wife and I. I am just getting into ts and just found this forum today. Thank God, I found this forum today b/c I got duped yesterday. I have 7 days to cancel. I may buy the same ts on resale for an 80% discount or more. Maybe not since they weren't very honest.

Are ts really worth that initial chunk of $ from the developer?
Why is resale so low?
Do ts really cost that much to develop?
What kind of margins do the developers make?

I have so many Q's. I will stick around here for a while and learn how to use, enjoy, and get the most out of ts

[GrayFal Silver Contributor and supermoderator Find all posts View Profile Close GrayFal]

you're right, it could be the best thing for them. ts is great. It is going to be great for my wife and I. I am just getting into ts and just found this forum today. Thank God, I found this forum today b/c I got duped yesterday. I have 7 days to cancel. I may buy the same ts on resale for an 80% discount or more. Maybe not since they weren't very honest.

Are ts really worth that initial chunk of $ from the developer?
Why is resale so low?
Do ts really cost that much to develop?
What kind of margins do the developers make?

I have so many Q's. I will stick around here for a while and learn how to use, enjoy, and get the most out of ts

dw - yes, u do have lots of questions - and a lot of the answers are already here....so take your time, start reading old posts that are already here - u will find a lot of people started out like u and by reading and asking questions about what you are reading - u will begin to build a good knowledge base.

Welcome again

[willak Junior Member Find all posts View Profile Close willak]

Dw24 - Depending on the company, it probably would be in your best interest to rescind. This is especially true if you end up making an additional purchase. TS are good but they are even better at half price.

Are ts really worth that initial chunk of $ from the developer?

In most cases no.

Why is resale so low?

Resale prices are the true value.

Do ts really cost that much to develop?

No, they cost that much to market. About 25% of the cost is for construction.

What kind of margins do the developers make?

Do to the high marking cost it varies considerably from company to company. For most companies it is very profitable.

[johnmfaeth Junior Member Find all posts View Profile Close johnmfaeth]

The "official" stats from the American Resort Developer's Association (ARDA) is that 50-60 % of the original sales price goes to sales and marketing expenses. Anoth 25% is cost to build/acquire/develope the property The remaining 15-25% goes to general expense and profit.

That combined with the overall inefficiency of the resale market, and a "overhang of the resale market" with a glut of owners 'wanting out" make the average midrange resort, like a Wyndham worth about 10 cents on a dollar resale.

High end resorts like Westins, Marriots, etc. command a higher premium, can be as much as 60-70 cents on the dollar resale value.

[JudyS Senior Member Find all posts View Profile Close JudyS]

you're right, it could be the best thing for them. ts is great. It is going to be great for my wife and I. I am just getting into ts and just found this forum today. Thank God, I found this forum today b/c I got duped yesterday. I have 7 days to cancel. I may buy the same ts on resale for an 80% discount or more. Maybe not since they weren't very honest.

Are ts really worth that initial chunk of $ from the developer?
Why is resale so low?
Do ts really cost that much to develop?
What kind of margins do the developers make?

I have so many Q's. I will stick around here for a while and learn how to use, enjoy, and get the most out of ts

Rescind, rescind, rescind!

As for why resale prices are so low, I would say it's because the resale market is not well-developed. Most timeshare buyers don't know that resales exist. Many resales go for far less than the value of the underlying real estate. I wish there were a reasonably efficient way to dissolve a timeshare and sell it for the real estate value. My Southern California timeshares would probably be worth 4 times what I paid for them, at least.

[Pianodinosaur Junior Member Find all posts View Profile Close Pianodinosaur]

High Pressure Sales at GM Riviera Maya

I recently stayed at the Grand Mayan Riviera Maya. We had had a big party for my wife's sister and took out two, 2 bedroom units. The resort is fantastic and the service was also fantastic. Unfortunately, we signed up for the sales presentation. We were promised a 10% discount on resort charges and a discount on various tours.

The 90 minute presentation turned into over 3 hours and they just would not take No for an answer. Several bait and switch tactics were also used. Finally, a very rude senior sales manager kicked us out of the room. However, they kept their word and we got the 10% discount on resort charges and on the tours. The service remained excellent.

I would never attend a Grupo Maya TS presentation again. It's just not worth the discounts.

[icydog Banned Find all posts View Profile Close icydog]

When we were in the Grand Mayan in Riviera Maya in January I told everyone not to buy from them. One guy on line paid $63,000 for two weeks there. I told him to go to the Profecto since the Mayan people wouldn't talk to him when he said he didn't want the week. He said, after returning from the Profecto, that he had waited too long, it had been over a week, to rescind.
I would have been destroyed but I saw him laughing it up at the pool bar so maybe he had lots of money to burn.

While I was on line to check in I had a little class in Timesharing 101 for the folks on line. I wanted them to know what to expect from the sales tour and what the GM and MP actually sold for on the resale market. I didn't get a thing for it, not even a thank you. I learned a valuable lesson there, I should mind my own business, enjoy my own vacation, and stop worrying about the rest of the world. My advice was okay as a time waster on line but nobody really believed what I said anyway.

[falmouth3 Senior Member Find all posts View Profile Close falmouth3]

Especially the inlaws! By their third developer purchase, I figured 3 strikes and I'm out.

Jana

I know what you mean. My in-laws were unhappy with their first TS purchase so they went out and bought a 2nd one, both from developers. Then instead of selling or donating them, they traded into a vacation club which is now defunct. I gave them a ton of information but they chose to do their own thing. It's frustrating, but it's their money and their lives.

Sue

[Ediesbeads Member Find all posts View Profile Close Ediesbeads]

My inlaws purchased blue through the developer when they went on a referral tour for US! I felt so bad. I told them, "don't do it, just gather info about the program and decided if you want to buy resale!" They did it, but luckily recinded in time for full refund. It was a hassle! I feel bad I even referred them. ;(