Tips to Avoid Timeshare Scams

Buying and selling of timeshare packages is a good way for some people to sell real estate, and for others to enjoy vacation time without having to pay for lodging every year. Unfortunately, there have been so many timeshare scams to arise that the entire industry has suffered many black eyes--and a soiled reputation. If you're considering a timeshare purchase, here are some suggestions that should help you find the legitimate opportunities and steer clear of the timeshare scams.

1) Remember that one of the clearest indicators of a timeshare scam artist is the offer of incentives that sound too good to be true. There are those who will offer everything from a new car or boat to a 14-day luxury holiday. Don't misunderstand: There are legitimate incentives, but usually these come in the form of something more reasonable, such as a discount or two or three nights free lodging at a local hotel. You can be sure that anyone offering something such as a car or boat will not deliver. Chances are, when you get there, they'll tell you that you have to pay something for delivery...and then the delivery will be something far less. One story says that after a couple paid for delivery of their boat, they received a toy boat.

2) If someone wants you to sell a timeshare you own for a different timeshare, proceed with caution. Usually this is a scam, and you'll wind up now the owner of two timeshares.

3) Travel clubs that invite you to a presentation will often (but not always) be scams in progress. Like the ones mentioned previously, they will usually offer you an unbelievably great incentive. If so, consider it non-legit and get out of there.

4) If the salesperson is overly aggressive and insists that you sign a contract today, even after you say you'd like a few days to look over the paperwork, you should walk out on them (or hang up the phone). A credible business will not balk at the request for time.

Now that you've got our list for how to spot timeshare scams, let's take a look at a list of ways to avoid them:

1) Never sign on the spot. First, research the company through the Better Business Bureau (www.bbb.org) and, if necessary, an attorney.

2) Never pay to receive an "incentive." Your payment for the timeshare itself should be your only payment. Incentives, by definition, should be free.

3) Read all paperwork, and before you make a heavy investment in the timeshare package, have an attorney look over it.

4) Never stay around for a presentation that seems too high-pressure.

5) Never call a 900 number to follow up on timeshare packages. Understand this basic rule: Other than the cost of the timeshare itself, you should not have to pay any money--not for phone calls, not for incentives, not for anything.

The possibility of timeshare scams should not prevent you from timeshare purchases if you're interested in them. Just be a careful consumer so that something that should bring happy memories doesn't bring miserable ones instead.

When most people think of buying timeshares, they think of the "old-school" methods: buying through timeshare brokers or real estate agents. However, more and more people are finding that there are many timeshare deals to be found online--especially in online auctions. timeshare companies have embraced this medium, as have private individuals.

However, it's important that you exercise caution. There are stories almost weekly about someone who fell victim to an online scam: buying a timeshare that doesn't exist or that is far below the quality that the average person would expect. Here are some tips for getting the best timeshare deals online.

1) Do your homework. It's easy to get caught up in the excitement of bidding in an auction, and many people wind up paying more than the timeshare is actually worth. Before you bid, find out what similar units in the desired area are going for. Then make your bid appropriately.

2) Most of the good auction sites have followed eBay's lead of offering a feedback system. Be sure to use them. Never buy a Timeshare from someone unless his feedback score is almost perfect. Remember that when a person is leaving feedback, if they were even moderately satisfied, they tend to give the person a perfect score. It takes deliberate effort and thought for a person to leave a negative score, so think carefully about buying property from someone who has even a few negative marks.

3) Ask questions. There should be a feature on the site that allows you to send messages to the sellers or timeshare companies. If you have any doubts whatsoever about what you're bidding on, ask. And if the person does not respond to the email, this should send up warning flags in your mind.

4) If someone else wins the auction, but you believe (or know) that your bid was in second place, send the seller a message offering to buy the timeshare if the winner does not follow through. You would be surprised how many times the winner will simply vanish--and how many times the seller would be willing to sell to the runner-up, if he expresses an interest. This can be an excellent way to get a great timeshare deal, below what you might expect to spend.

5) Learn patience. Whether buying a timeshare or anything else in an auction, many people get in this mindset of feeling like they have to buy now. They therefore bid more than they should, or settle for a property that doesn't quite meet their needs rather than wait. If you decide to find a timeshare deal via online auction, allow yourself a couple weeks to find and win one. This way, if you don't find one that suits you today, you can look again tomorrow--and then the next day, and so on. And if the bid on a property goes more than you want to spend, that's fine; you can try again in a couple of days.

Follow this strategy for finding your timeshare online and you're more likely to be satisfied with the results.