Why Do People Sell Timeshares for $1?
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You can buy nearly anything you want on ebay these days – ugly dolls, collectibles no one wants, clothes, and even coupons. But did you know that you can buy a timeshare for $1?
I certainly didn’t until I stumbled upon pages of timeshares on ebay the other day, many of which were for sale for $1 or $5. I was obviously intrigued, so I scanned a few of them to see what was up with the low, low price tag.Â
I knew timeshares weren’t a great investment, but it seems like they would be worth more than $1, doesn’t it?
Why Do People Buy Timeshares in the First Place?
Personally, I don’t see why anyone would even want a timeshare. I love to travel, but I would never want to limit myself to certain destinations or resorts for the rest of my life. And I guess I’m not the only one who feels that way- with so many timeshares for sale on ebay and craiglist for under $5, it seems pretty obvious that a lot of people who buy timeshares eventually live to regret the decision.
So, why do people sell timeshares for $1? Here’s why:
- The fees are too high. When you buy a timeshare, you’re basically purchasing a certain amount of time (usually a week or two) at a certain resort or family of resorts each year. The thing is, you’re also on the hook for certain fees for upkeep in addition to the fee for the timeshare itself, and in some cases, the fees are cost-prohibitive. Take this 2 bed/2 bath condo in Kissimmee, Florida, for example. The annual maintenance fee is $879, plus the closing fees for the sale are up to $500. Why would anyone commit to paying $879 annually for a week in a condo when they could easily find something comparable on AirBNB.com?
- The commitment. Buying a timeshare is a lifetime commitment, and it seems to be a commitment that many people genuinely want to get out of. When you look at the timeshares for sale online, you can tell these people are desperate to unload them. In addition to selling them for $1, many sellers are offering to pay all of the closing and transfer costs as well as the dues for 2015. That’s never a good sign.
- Someone else is in control. When you buy a timeshare, you’re basically buying a slice of an investment that someone else is ultimately in charge of. Not only can your maintenance fees climb year over year, but you can also get stuck with special assessments. It seems like a really bad idea to buy a piece of a property when all of the real decisions are being made by a third party.
- Their resale value is terrible. I’m sure it sucks to buy a timeshare for $10,000 only to realize that you can’t even give it away. Because that’s basically what the people who are selling their timeshares for $1 are doing- they’re just handing them over to someone else. To me, buying a timeshare seems a lot like buying a new car – eventually it will be worth nothing. The only difference is, with a timeshare, the monthly maintenance payment can literally be a lifetime sentence. No thank you.
We travel a lot and we have been asked to sit through a timeshare presentation countless times. The last thing in the world I want to do on vacation is sit through a presentation, so I always say “no.”
From the looks of it, that seems like a good idea. When you’re trying to sell something for $1, and can’t get anyone to bite, that’s a sign that your timeshare is basically worthless.
Do you know anyone who has tried to sell a timeshare? Would you ever consider buying a timeshare for $1?
Additional reading:
After reading your post, I wouldn\’t dare touch one! But personally, I dislike timeshares because I love traveling to new places and timeshares don\’t allow that.
Some do, but you have to trade your weeks with other people!
You really have to do a lot of research about timeshares before you right an article. I bought from the developer in 1999 and paid $32,000 for 2 weeks. Because I was fairly young, to this date I have actually more than broke even in terms of if I was to rent all those years anywhere. I am in the process of acquiring a “FREE” timeshare and I will be responsible every year for those maintenance fees of $700 yearly as well as my other 2 weeks at $800 each yearly.That is 21 nights per year (3 weeks) for $2300.00 per year. I can have up to 8 people with me in the condos. I can drive so there is no airfare. The units/weeks I chose are guaranteed to be mine every year unless I trade to go elsewhere. People who purchase free or cheap points can even do much better in that system if they know what they are doing and can plan ahead. The reason so many timeshares are for free besides people falling on hard times or not knowing what they are doing in therms of how to use them are because the population of timeshare owners is aging out and not able to use them anymore. This is a great “buying” opportunity for the younger generations who do their homework. Also, they can get some good rental rates from people who aren’t using their timeshares anymore. So- don’t knock it unless you’ve tried it! But d your due diligence!
True in that they aren’t always bad. For example I have a Fourth of July week and a New Years week that I bought resale very cheaply. At those times of year and in those locations I could not rent what I have for the maintenance fees I pay each year.
The timing on this post is perfect – I was just talking about timeshares at lunch with my colleagues. A few years back my wife and I went to a timeshare presentation and it was everything you think it is – over the top, high pressure, etc. We resisted, and I was even more amused to see the same timeshares on eBay when I got home selling for $1. It’s those fees! They are just simply not worth the trouble.
Definitely not.
Oh my gosh that’s terrible. I have also always avoided timeshare presentations, and I’m so glad. I had often heard of people being desperate to get rid of their timeshares, and now I understand why. Those fees are killer! It’s amazing that anyone ever buys them. Sadly, the people who do buy timeshares probably often do not know what they are getting into.
I’m guessing not.
We have friends whose family has owned a timeshare for years. And they go to the same beach every summer. That’s the only way I can see a timeshare working. I’d never do it because the monotony of the same location every year would drive me crazy.
Same here! I like having options!
The fact that there is a number of people trying to unload a timeshare for $1 is a huge red flag to me. I don’t want to purchase something that is such a terrible investment (if you can call it that) that you have to unload it for just $1. Timeshares are definitely something to stay away from in my opinion.
Yep! I wouldn’t even buy one for $1!
Like Brian said, the only time I could ever really see a timeshare working is if you know you’re going to the same place each and every year. That said, I don’t know that would be enough for me to sign on given all the other associated issues. I think we’d rather just find something on VRBO which should be relatively simple enough if you’re going to a highly visited place. We’ve had a ton of them pitched to us and no matter what sort of free crap they offer us it’s just not worth our time.
Same here. I don’t want to spend my vacation listening to a high pressure sales pitch!
My parents bought a time share. I don\’t think they really wanted to either but they went on one of those \”all expenses paid\” weekends and came back with a newly purchased time share. They use it once in a while and the annual fees a pretty low. But it\’s still one of the most questionable financial decisions I\’ve seen a family member make.
Sounds like it~
I don’t see the appeal of timeshares. I’ve tried to understand why people buy them but I think it will always be a mystery for me.
I know someone who funds multiple timeshares with their student loans. It’s a disaster and she even tells others to do the same. AHHH!
WHAT>!>!>!>>>>>>>>>>>>>>>>
My parents bought a timeshare when I was little. At the time, it looked like a good deal. Not so much anymore. First you have the maintenance fee of your home property. If you want to go somewhere else, you have to sign up for an exchange service. Guess what? That is another maintenance fee every year.
Between the two, you are looking at paying close to $1,500 a year in maintenance fees and you pay that even if you don\’t use your week! The other annoying thing is that the cool places, like Hawaii and such are booked solid. To go there, you need to book 2 or more years in advance. You end up getting average quality places to stay, which for $1,500 you could do better.
They ended up selling the other year. They had to pay to get out because no one wants these things anymore. The kicker is that now, the new timeshares have a clause in them stating when you pass, your next of kin becomes owners of the timeshare. I have no clue how that is legal but some peoples kids are going to be on the hook for a timeshare they never wanted in the first place.
I know someone who inherited a timeshare! That seems pretty crappy that the kid can get stuck with the annual fees.
You do not have to accept an inheritance. We have already told our son when we pass to consult a lawyer and to not accept the timeshares unless he wants them and can afford them
Nothing about a timeshare is appealing to me! It seems like a giant scam!
Anything that requires high pressure sales usually is.
Holly, great minds think alike, well maybe not *exactly* alike. I have a post coming out tomorrow morning on timeshares, but my perspective is as an owner for over 15 years. They’re certainly not for everybody. I would say timeshares are not an investment, as you are almost guaranteed not to get a financial return on them. But the vacations I’ve taken have all been wonderful, at amazing resorts, in various locations. It is a lot like buying a car, in that you don’t so much have an asset, but you are getting the usage of something for many years. But just like buying a car, there’s maintenance which costs money. While my timeshare fees have gone up over time, they haven’t become completely unreasonable. Hope you’ll check out my post and let me know what you think.
My friends mom just bought a timeshare in Florida and i was like ”WHYYYY?!?” I’d at the very least buy real estate not a timeshare if I was looking for longerterm roots in one place.
I never fully understood timeshares but it seems like in everything I do know about them, that there really ins’t a whole lot of good in getting one. Plus like you, I don’t want to keep going back to the same place.
I think the only people who are ever positive on timeshares are the ones who get suckered into buying them. You could pay for lots of travel for the carrying costs of timeshare-
I have sat through a few presentations if the bonus is good enough. It’s boring and high pressure, but if it’s worth a few hundred dollars, I’ll do it.
Didn’t the Queen of Versailles’ husband make and lose his fortune in time shares?
No the “Queen of Versailles” husband is a huge developer and they lost all their money…( excuse me..Our Money) because they spend it like water and have no value of a dollar! They treat their sales people like crap while making the public think they are so innocent and worthy. What a Joke! They want to build the biggest house in the world , while their sales people are barely living…
I only know one family with a timeshare where it seems to work. They have one in the Wisconsin Dells. They are a foster family so they always have kids. I’m not sure how the financials work out for them, but when it came up, they didn’t have negative things to say about it.
I couldn’t imagine ever doing one myself. There is too much of the world to see and too many cheaper ways to see it!
I don’t know anyone that’s tried to sell a timeshare, but I know someone who owns one – and they use it about 50% of the time. All the savings that they were promised in savings for vacationing in their timeshare spiel goes down the drain in the yearly fees they pay and then don’t use the facilities.
I HATE timeshares. I hate the idea of being forced to stay in a particular location during a particular week. Even the ones that have “flexibility” don’t really offer that much flexibility. I would rather have the option to use credit card rewards to go to any location I want.
You do not have to go to the same place every year. You can trade and believe me I have been everywhere! Also, there are plenty of independent exchange companies that you can join for free! I go on more vacations then almost anyone I know.
Can you tell me the names of any free independent exchange sites? Thanks.
Independent exchange companies are: DAE, RTX, SFX, Trading Places International, Platinum Interchange – to just name a few. Also- Hawaii Timeshare Exchange. There’s a bunch of them.
I would like to thank you for this post. I will definitely check into those sites. I am a fellow timeshare believer.
Mary Ann
Where can someone learn more about the ins and outs of timeshares….trading and such? I’ve searched online but not a lot of straightforward info.
I own at Disney, the Beach Club, and love it!! We don’t always go every year but if we don’t then the next year we can take a longer trip! It’s based on a points system. Thanks!
I’ve never understood the appeal of timeshares, and based on your post, it’s clear why.
The closest I’ve ever been to one is is luxury housing group my uncle belongs too… where you don’t have a timeshare but you’re in some sort of club where you can book any of the houses the company owns all over the world for your vacations. It’s pretty sweet….. but definitely not cheap (I think it has a $250,000 buy-in plus an annual fee). Maybe someday haha!
I’d never buy a timeshare! My in laws have 2, and I hate even hearing about them.
A lot of these time shares, like the one you link to, you can actually stay at and pay for like a regular hotel. When I lived in Orlando, we would do staycations at these kinds of places because it was fairly inexpensive. I can’t imagine paying and committing to all those fees each year when you have an option to do the hotel thing!
The yearly maintenance fees are much less than if you rented directly form the resort, whether the one you own at or the one you exchange into. That’s why they are attractive for many people. And if you can get a timeshare for free it’s a good value.
My in-laws. I was just ranting about this to someone on Twitter.
My FIL changed jobs and got his 20 years of profit-sharing. They paid off their timeshare but not their mobile home. (Their reasoning? The house was trashed thanks to pet incontinence problems
Then my FIL lost his job 6 months in, didn’t get work again. Meanwhile my MIL is on disability. So they sold their timeshare at a huge loss and still had to pay their mortgage. They eventually gave up on that and the bank let them stay there just to avoid them walking away. They still did and now live in our guest house. Brilliant financial strategy.
Timeshares are never a deal but like any other “investment” people are fooled into low monthly payments. I guess they see timeshares as “their” little piece of paradise.
Timeshares are not a financial investment, but they are an investment in your quality of life. But- people should never buy from a developer or take a loan to own one. That’s where they go wrong. They need to buy resale or acquire a free one.
I think that’s probably the key. Never borrow money to buy a timeshare! Buy one at a serious discount and pay cash for it for heaven’s sake.
You just triggered a memory that I had nearly forgotten. My parents once took us 4 kids to a time share presentation for the free breakfast! I don’t know if I’d pull that with my kids or not!
Ugh, NOT a big fan of timeshares. My dad used to own a couple, and half the time he couldn’t or didn’t want to use them. I’d imagine it’d be trouble to unload them.
I’m not a big fan of timeshares either. We love traveling, but like to explore new places. And yes, those fees are crazy. I do know people who have timeshares and somehow make them work for them. Or at least tell themselves it does.
Timeshares have never appealed to me for the same reasons. They seem like a raw deal and I agree with you, I’d rather travel to many different places–not the same place every year!
I’m surprised the government hasn’t stepped in to further regulate these sort of transactions. Where else in the world can you be sold, in a very high pressure environment, a lifetime contract? Even mortgages are only for 30 years.
Many consumers clearly aren’t (yet) in a great position to educate or defend themselves from the companies selling these products.
Time share never made any sense to me. It seems just too restrictive. The maintenance fee also tends to increase as the property ages. It’s easier just to book accommodations through Airbnb IMO.
I am smiling at the memories of going to a couple of those high pressure sales presentations.
When our kids were young we looked for fun, cheap entertainment. Now, these presentations always offered refreshments, lovely touring of the grounds and, a free gift for your trouble. LOL! This was our mini vacation. 🙂
My husband and, I would spend the day chatting up the sales guy. All the while we were viewing the salesperson from a critical eye. Our job was to study his sales tactics, then on the way home have a great conversation about the effectiveness of this persons job performance.
We never bought. We knew we were going for entertainment value and, the free food. 🙂
Now, we are in our 50’s. The kids have kids of their own. My daughter and, her husband booked a free mini vacation in Branson MO with the catch you had to sit through a 90 minute presentation. She called to question me about how to “enjoy” the presentation. I explained to her what our objective was back in the day. I said, “Pretend you were hired buy the company to sit through the presentation and, review the effectiveness of the salesperson.” “Always listening politely and, making mental notes of how the person was effective or, lacked in skill.” I said, “Your pay for this evaluation is the 2 free nights stay, free dinner and, the show.”
It worked for them too. However, she didn’t share what I told her with her husband. Apparently, the sales guy was doing a great job because my SIL was ready to buy. But, my daughter jumped in to save the day. 🙂
I love it!
Hey, as long as you can get out of there without feeling too awkward, I think it’s great! I generally can’t be bothered on vacation, but maybe I will check out the “free gift” next time. If it’s good enough, you never know! =) I know for a fact they couldn’t talk me into buying a timeshare, so no worries there.
I have no interest in timeshares, either. When I lived in Orlando, I actually sat through one of those presentations just to get free gas vouchers. Sure, the property was nice, but I couldn’t see the appeal at all.
My parents have one and never use it. I know they regret it big time.
I’m still surprised that people still get sucked in on timeshare presentations. I’ve been to places where they offer some cool things just to go to the presentation. I wonder if it’s worth it just to get the freebies but I don’t want to hear the high pressure sales tactics. I know some who want to get rid of their timeshares but you couldn’t GIVE it away. Who wants to get stuck paying fees annually? I’d prefer travel hacking!
It might be the worst use of your money in the world and I’m 100% serious. What’s even scarier is many people are buying these timeshares on loans at high interest rates, so it’s essentially a credit card type APR with fees every year, Worst Use of Your Money Ever.
I’ve never really looked into timeshares, but my in-laws have a few of them. It’s through a huge network of timeshares so they’re able to trade for different locations. That being said, I’m sure the cost isn’t worth it.
I’ve never actually looked into timeshares, or heard of any relatives or friends that have them. Seems like I’m kind of lucky! At one point I thought I should look into them as it seemed like a decent idea, but put that idea on the back burner. Looks like I don’t have to waste my time now – thanks for sharing.
I actually think timeshares can work in the right situation. Here’s the one we are in, and seems to be very effective for us.
Our friends bought a time share for a dollar.
We split maintenance fees with them, so each couple pays $350/yr between maintenance free and the exchange.
Our family does 2 trips a year. One couples trip to Mexico, one family trip to orlando. We use an exchange program to book different resorts.
Total cost for 14 nights in gorgeous 2 bedroom resorts with full kitchens ends up being $600-$800 with maintenance fees, exchange fees, and booking fees. That’s around $50/night. And a separate room for our 2 year old to nap, a living room for our 6 year old to chill in between disney parks, and a separate room for mom and dad to watch tv during nap time is key for longer trips. And the kitchen saves us on something points can’t help much with: food.
So, we have found a way to make it work. Doing it as a shared expense between good friends or family is something mor people should consider.
But you bought it for a dollar! You’re on the winning side of that equation! Good job!
I just don’t understand the appeal of a timeshare. The fact that you can purchase it for a dollar is also unappealing.
I’m totally with you, considering the fees and all that, BUT my aunt and uncle bought one when my cousins and I were little, for the two weeks after Christmas, in Orlando. Well it was certainly magical spending every post Christmas break and New Years at Disney. It was a wonderful, wonderful part of my childhood, and this was long before the days of AirBnB. Since it was two families travelling together it was way better to have this condo with ample space and a full kitchen over two expensive hotel rooms. My uncle has since passed away and now that we’ve grown up we haven’t been back to Disney but my aunt seems to be able to pretty easily switch her location and date with other people so it’s like she can use the two weeks anywhere, anytime. She even gave me one week in Peru for the second half of our honeymoon, which was incredible. All that to say, I would never get one but I’m very glad she has one. 🙂
The reason some people dont like timeshares is because they dont know how ti use them and plan in advance. We have owned since 1999 and we love going every year- its like having a second home without all the headaches! There are some people who timeshare fulltime! We have a second week that we traded for many years and went everywhere and had such memorable vacations in nice spacious accomodations. We are in the process of acquiring Free third week at a different resort to tack into a summer week we have so as to have 2 weeks in a row every summer, plus our off season wrek in Spring or Fall. My coworkers cant believe how many vacations I have been on! My parents owned a timeshare and loved it. You have to do more research about them, but the only downside is indeed an exit plan, but it will be sad for us when the day comes that we csn no longet travel.
Hey, it sounds like you have a good system. If you’re finding value in it, then I think it’s great! Perhaps people who regret it don’t have a good plan to use their weeks or don’t know how to maximize them.
Another benefit of having a timeshare that you want to go to every year is that you make friends and your kids make friends with the other people who go every year. Our son grew up going every summer to his grandparents one on the beach for 2 weeks and ours in Northern Vermont for a week and the same families would be there as well, just like if you had a summer house in a summer community somewhere. A lot of fun. And, we traded another “float” week we had to go to places like Hawaii, Florida, Maine, New Hampshire, Virginia, Arizona- the list goes on and on. And we have rented other people’s timeshares to go to places like Scotland and Yellowstone. If you like to travel, they do work. There is a group on-line called TUG- Timeshare Users Group- and you can read about peoples passions for their timeshares and how they utilize them, as well as people who have issues with them. It is a great resource for anyone thinking about getting timeshares and keeping them out of trouble.
The same arguments you make about buying I timeshare I could make about buying a car. Perhaps I should just rent a car, instead of owning one. (but no, I drive the same one every day, Its 20 years old, its resale value is near zero, and it requires regular maintenance)
To answer the to questions posed at the end of the article “Do you know anyone who has tried to sell a timeshare? Would you ever consider buying a timeshare for $1?”
I have bought and sold on ebay, Just this week I bid $7200 on one and lost. and $5 on another and won
Not all timeshares are alike, no two people are the same.
I own three timeshares, I did my research, and pay $600 for 2bdr 2bath condos that usually go for $1200. That’s per week.
The $600 per week is inclusive of the maintenance fees and the exchange fee.
Additionally, in the future, should demand increase for my home resorts, my maintenance fees will go up only in line with inflation, not according to demand for my home resort. Therefore, I will DEFINITELY spend more in the future, but will PROBABLY save even more than $1800 a year.
Do your homework, and if you vacation more than twice a year, I can’t think of a better way to vacation than with timeshares.
Even at $400 per year maintenance fee. That is 400 x 52= $20,800 a year for the property (maybe a condo) you owned a little. What kind of property is that costing over $20,000 to “maintain”? This is a scam for these developer/operator companies! Not to mention those with $2000 a year maintenance fee ($104,000 a year to maintain, a mansion?)!
ACE VENTURA – It is $400 PER YEAR, not per MONTH!!! LOL!
If you own a week’s vacation PER YEAR- that is $400 PER YEAR, NOT PER MONTH! GET IT?
Who cares if they make a killing with the maintenance fees. What about the hotel chains? They make a killing. Obviously these companies are in it for the profit.
I certainly don’t have the cash to build my own home on the beach, but at least I can own a week of one.
Owning a timeshare makes sense for me because it keeps my costs fixed, especially since hotel prices have gone nuts over here in Socal. And now, VRBO and Airbnb make it so easy to rent out our unit if we want to go vacation somewhere else.
Why pay thousands of dollars upfront plus other yearly feed when you can rent from owners for far less with no large upfront payments. Timeshare vacations are never free the cost for them is your maintenance fees and any other yearly fees because if you don’t pay your yearly fees then you can’t use your timeshare.ask yourself why is timeshare CEO or his salespeople so worried about wether you vacation or not? It’s your money they are after.
Hello. I have read hundreds of responses to timeshares purchases. Most of them are negative. I have to diagree. If you use your timeshare more than 4 times a year it is well worth it. If you use it every couple of years then you loose. I currently have 3 time shares which I share the maintenance fees with 3 other buyers. This year along I have traveled to Las Vegas for a week, Massanutten VA for a week, Florida for a week and National Harbour Md for a week and a half and an Myrtle Beach SC for a week. All for about $600. If you split the maintenance fees it becomes cheaper. The resorts are much better than renting a one bedroom hotel which does not have a full kitchen or living room. If you use the timeshare often it is beneficial. If you dont well its a waste of time. You have to do the research. But I love it. All timeshares should not be bashed.
I have to disagree with you. It depends entirely on the location of the timeshare.
We bought a 5* 2Bedroom timeshare that sleeps 8 on the Southern California coast 19 years ago and have never regretted it. We paid extra to have a fixed week in late July, so we don’t have to worry about getting the week we want. We have only traded a week once and did not like the trade. Our kids look forward to going to our resort because they have made friends with kids of other owners that have the same fixed week as us. It has become “home away from home”.
Here in SoCal, a decent hotel room by the beach will cost you $350 or more a night and hotel prices keep going up.
Now, if we go somewhere else on vacation, we rent out our week at 2 1/5 to 3 times the cost of the maintenance fees using VRBO and use the money to travel to other places. Last year, it paid for most of a 7 day Alaskan cruise with Celebrity, this year we used the rental income traveling all around Scotland for 10 days. We are in the process of purchasing a second unit at a resort in Carlsbad, Ca on the beach for a killer price. I know I will be able to rent it out for a lot more than the maintenance fee, or stay there. Our kids love the fact that they will be able to inherit it, since they practically call the resort home away from home.
I d like to buy a timeshare for a 1$
Westgate lied unbelievably to us we will give it away somebody can just take it, i quit paying on it when they lied they are ruining our credit i wish I could sue them for lying
I bought it from a resaler but there was no Airbnb or any such thing at that time. It was good for a while since the rental charge is higher than annual fees.
But now that I am old, is there a reliable website where I can sell it?