Diaz: Time Share Sales Secrets

Aug. 10, 2001 -- When it comes time to head out on vacation this year, millions of Americans won't be booking hotel rooms. Instead, as we explained in part one of this series, they head to timeshare resorts — where they own an annual week's worth of time. Or they may exchange that time for a week in another resort elsewhere.

While it's a very popular way to travel, many of the people who will tell you how much they love their timeshare will also quietly complain about the way it was sold to them. We've already listed the most common misrepresentations a salesperson may make to you — now we've got some of the trade secrets used to reel buyers in — along with the insider's lingo sometimes used behind a customer's back.

Of course, in many cases there's little wrong with the presentation you'll attend — the salesperson may be honest and straightforward, and won't pour on the high pressure. But just in case you get someone who's not in this category, we've talked to several former insiders to show you what you need to be wary of.

Tricks of the Trade

If you're visiting vacation hotspots like Florida or South Carolina, there are plenty salespeople waiting for you to arrive. In those areas you'll find tourist information booths that aren't there just to hand out maps: they're really recruiting centers for timeshare resorts.

But that's nothing compared to areas such as Cancun and Cabo San Lucas in Mexico, where many locals relentlessly try to schedule you into sales presentations the minute you get off the plane, while walking through the airport, at the rental car counter, in a taxi, while checking in at your hotel or eating at a restaurant, and even as you lie on the beach. They'll shower you with offers of freebies or cash in exchange for your time.

Be careful what you say once you get into the sales room — even if you think you're alone. A former employee for a timeshare company in Texas recently filed a complaint with the state — accusing some salespeople of illegally snooping on sales prospects.

The employee alleged that these salespeople would leave customers alone in the negotiating room for a few minutes — while using a microphone to electronically listen in on their private conversation. When the salesperson returned, they could then use information overheard in the negotiations that followed. There's no evidence that this is a common practice — but it always pays to be careful.

Ignore the constant drumbeat of new sales going on around you. Some resorts will liven up the sales rooms a few times each hour by announcing that another lucky couple has just made a purchase —salespeople applaud and you get the message that everyone else is buying — so why don't you. But insiders say that at some resorts many of these new sales are phony — they're staged just to create an atmosphere of a buying frenzy.

Don't believe verbal promises of an upgrade. If you balk at paying so much for a vacation week, you may then be steered away from a high-season week to a much cheaper off-season timeshare.

As an extra inducement, you could be told that the off-season will soon be re-classified as high season — allowing you to save money now while still hitting the beach when the water isn't freezing. But if they don't put this claim in the contract — assume it's probably not going to happen.

Show them the best … and sell them the rest: Beware this tactic. When you take the tour of the resort, they may show you the fanciest rooms with that amazing oceanfront view. But after signing up, you arrive for you vacation — only to find that you've been switched to the plain-jane room overlooking the highway.

The Lingo: What Are Some Salespeople Saying Behind Your Back?

'Moochers': Many tourists just take the tour just to get the free gift — anything from theme park tickets, dinner at a local restaurant or even straight cash — and may even tell the salesperson up front that they have no intention of buying. They're called "moochers," and some frustrated salespeople have been known to ridicule them to their faces if it's clear there's no sale to be made.

'The Nosebleed Drop':This describes how the price you're quoted for the timeshare starts so high it's in the 'nosebleed' zone, but is then lowered to make the customer feel like they're getting a special deal. You'll often hear a phony story to explain why. They may say, for instance, that someone just cancelled a deal, so there's one unit available at the lower price.

'Pitching Heat': This describes a salesperson who will say or do almost anything for a sale. They pour on the high pressure — and may make all kinds of false or misleading statements — until their customers sign on the bottom line just to escape the onslaught (see part one of this series for a list of their common misrepresentations).

'Be-backs Don't Mean Green-backs"- A common line tourists give to the salesman is "we'll think about it and be back tomorrow". But once the potential customer escapes, salespeople know that most won't return. So to counter this excuse, they'll pretend that you have to buy the timeshare now or else the "special deal" will expire.

Now you've heard the bad news but there's also plenty of good news for people in love with their vacation timeshares. And even those who have no complaints about the sales process along the way.

Arnold Diaz joined ABCNEWS' 20/20 in 1995, after establishing his reputation as one of the leading consumer and investigative reporters in the country during his 22 years at WCBS-TV in New York City.

Next: If you'd like to steer clear of sales people, in our next column we'll show you how to do it — and save thousands of dollars along the way by buying timeshare resales. Also: a warning about ripoffs that target timeshare owners who are trying to sell.