timeshare broker services

[cynthialac]

I placed a bid on a timeshare that was accepted via a broker. I found this timeshare on my own at sellmytimesharenow.com. A broker responded to my first offer via email. She has acted as go between. Now that the seller and I have agreed on a price, broker tells me I have to pay all closing costs which I expected but then she said I had to pay her commission as well, which she stated was $500. Is this legit since I did not retain her services, the seller presumable did? I argued the point with her but she insisted that buyers pay the sales commission in timeshare deals. I am a newbie. Thank you.

[DeniseM]

Hi and welcome to TUG!

I have never heard of the buyer paying the commission in a TS deal - I would let this one go, since the terms were not disclosed to you up front.

There are so many timeshares on the resale market right now, you will find something else at the same price or better, if you are patient.

[timeos2]

Originally Posted by cynthialac

I placed a bid on a timeshare that was accepted via a broker. I found this timeshare on my own at sellmytimesharenow.com. A broker responded to my first offer via email. She has acted as go between. Now that the seller and I have agreed on a price, broker tells me I have to pay all closing costs which I expected but then she said I had to pay her commission as well, which she stated was $500. Is this legit since I did not retain her services, the seller presumable did? I argued the point with her but she insisted that buyers pay the sales commission in timeshare deals. I am a newbie. Thank you.

No. You have no obligation to the agent unless it was in the original offer. She is trying to double dip (is there no end to the tricks in timeshares?) As Denise said if she insists (although I don't know how she could enforce it) tell her the deal is off and find it elsewhere. Then she gets nothing which it sounds like she deserves.

[cynthialac]

The broker from Timeshare Broker Services called back yesterday. She quoted me $853 in closing costs PLUS a $500 commission she insisted should be paid by me because the cost of the unit $800 was so low and the seller could not absorb this cost. I told her now way was I going to pay $1353 in closing costs on a unit I was paying $800 for and she hung up. Thanks for telling me to walk away.

[l2trade]

Originally Posted by cynthialac

The broker from Timeshare Broker Services called back yesterday. She quoted me $853 in closing costs PLUS a $500 commission she insisted should be paid by me because the cost of the unit $800 was so low and the seller could not absorb this cost. I told her now way was I going to pay $1353 in closing costs on a unit I was paying $800 for and she hung up. Thanks for telling me to walk away.

Yes, of course you should walk. Below is my personal consumer opinion about what I would also do as a courtesy to others:

If this timeshare is a real estate deed, a complaint to her state department of real estate may be in order. You will help to protect folks against these kind of abuses. Buyers/sellers negotiating closing costs are customary. Buyers paying for the sellers commission is not. You can check with the department of real estate on the local laws. I would expect commissions to be disclosed in the listing and as well as before any agreement is reached on sales price.

[BocaBum99]

In a real estate transaction, just about everything is negotiable. The broker or sales agent's objective is for a deal to be completed and a commission to be paid.

If you blindside a buyer like this agent obviously did, then you risk losing the deal. They did.

Usually, there is an agreement in place to determine who pays a commission. The reason a seller usually pays commission is that they sign a listing agreement that specifies the commission prior to sale.

If a buyer is to pay a commission, there is usually a buyer's agency agreement that specifies the amount to be paid.

A broker cannot collect 2 commissions without disclosing it. Of course, if another company is collecting the advertising fee (as is the case with SMTSN), then that is technically NOT a double commission.

What the OP should do is try to contact the seller directly. Offer the $800. If the deal is done, the seller is likely the party that Timeshare Broker Services will have to go after to collect a commission. They will claim that they are the procuring cause, but getting that from the buyer who was never disclosed that they were to pay that fee will be difficult and costly to get. The seller bears the risk if a deal is done and a commission isnt' paid.

[Stefa]

I made a (low but fair) offer on a Marriott property listed on SMTN. I got a response from a broker from Timeshare Broker Services teling me that Marriott would never let the sale go through their ROFR at the price I offered. I have not heard any report of Marriott using ROFR for at least several months, so I doubt this is true. I took my business elsewhere and the same offer was accepted by someone else.

[timeos2]

Originally Posted by Stefa

I made a (low but fair) offer on a Marriott property listed on SMTN. I got a response from a broker from Timeshare Broker Services teling me that Marriott would never let the sale go through their ROFR at the price I offered. I have not heard any report of Marriott using ROFR for at least several months, so I doubt this is true. I took my business elsewhere and the same offer was accepted by someone else.

You did exactly the right thing. Like everyone else brokers are being negatively impacted by this serious downturn and some are still trying to claim that ROFR is a player when in fact it is dead dead dead (except the seller will still get nicked for the unnecessary and rip off $95 fee to "reject" ROFR interest in many cases). It is an open market with thousands more sellers of even the best properties than there are potential buyers. As a buyer you need to pay very little to take on the true cost of timeshare - the annual fees. Fees at the "name" brands tend to be 1/3 to 1/2 higher than "nonnames" so be sure you feel that the value is there for you. Buy very low and then you'll get your value out of the annual fees and be able to sell very low when your time to sell arrives. It is the only timeshare model that actually works. Paying much of anything to buy is money lost you'll never see back.

[pfrank4127]

I recently had a positive experience with Better Timeshare Brokers. I dealt with Karen; she quickly returned emails and calls, accepted my offer even though was very low, and was upfront regarding all the fees and costs.