Buying a Timeshare: Essential Tips and Considerations
Buying a timeshare can be an exciting prospect, offering the promise of vacation adventures for years to come. However, it’s important to approach this investment with care and thorough understanding. Here, we provide potential buyers with essential tips on what to consider first if you’re interesting in purchasing or owning a timeshare.
What to Consider Before Buying a Timeshare
Assess Your Vacation Preferences
Consider how you like to vacation. Do you return to the same destination every year, or do you prefer exploring new places? Your vacation style will significantly influence whether a fixed-week, floating, or points-based timeshare is right for you.
Understand the Financial Commitments
Beyond the initial purchase price, timeshares come with recurring maintenance fees and sometimes special assessment fees. Assess these costs and how they fit into your long-term budget.
Location and Seasonality
The location of your timeshare will affect both the price and your enjoyment. Popular locations may be pricier but easier to exchange or rent out if needed. Consider also the seasonality of your timeshare; peak seasons offer more desirable weeks but often come at a higher cost.
How to Choose the Right Timeshare
Research the Resort and Its Management
Investigate the reputation of the resort and its management company. Look for reviews and ratings from current timeshare owners. A well-maintained resort with good customer service is crucial.
Visit the Property
If possible, visit the timeshare resort before purchasing. Experience the facilities, check the quality of the accommodations, and talk to existing timeshare owners about their experiences.
Check for Flexibility and Exchange Options
If you value flexibility, consider timeshares that are part of larger networks with multiple locations. This allows you to trade your week with others and vacation in different places.
The Purchasing Process
Timeshare Presentation
Most timeshare purchases begin with a sales presentation. While these can offer information about the product, they are also designed to sell - and sell hard. Go in prepared, and don’t feel pressured to make an immediate decision. It is also crucial to understand that timeshare companies protect themselves with disclaimers in their contracts against oral misrepresentation. This could allow for a sales person to misrepresent the product verbally in a way that encourages you to buy – yet the contract may not stipulate those same benefits. Buyer beware.
Resale Purchase
While the secondary market can be a confusing place to start, there are amazing deals from owners available. Purchasing from an owner instead of the developer can save you thousands of dollars on the exact same timeshare. Deals are often 80-90% off retail though there are some trade-offs to consider. Most brands restrict some of the status benefits or usage options when the timeshare is purchased on the resale market. That said, the primary vacation use generally still remains the same. Do some research of your own. There are valuable insights on user groups like TUG (Timeshare Users Group) and a myriad of timeshare-centric Facebook Groups that offer unbiased feedback from timeshare owners.
Get One For Free
Yes, you read that right. Timeshares can be fun when owners use them but can also be a financial burden when their owners no longer travel. As a result, there are thousands of people willing to give their timeshare away - no strings attached. Some are even willing to pay the closing costs which can add up to several thousand dollars per contract. Check sites like TUG and Facebook Groups specific to the brand you are interested in. Make sure you know what you are getting into prior to any deed transfer. Those same groups can be great resources to answer lingering questions about timeshare ownership. Many love their timeshare and take great pride in sharing their experiences - both good and bad. So don’t be afraid to engage!
Things to Consider
Review the Contract Carefully
Timeshare contracts can be complex. Review the contract with a legal professional if possible, particularly focusing on clauses related to the usage rights, financial obligations, cancellation policies, and resale restrictions.
Know Your Exit Strategy
Understand upfront how you can potentially exit the timeshare agreement in the future. Some timeshares have buy-back programs, but that will not help if you have an open loan and you wish to divest quickly due to a lifestyle change. Understanding how to rent to offset your costs is a critical way to empower yourself in the event of a shift. Companies like KOALA, Redweek TUG and a few others are timeshare specific rental programs. Be careful though – there are a lot of fraudulent entities that claim to be legitimate rental, resale or exit companies but are simply scams.
Buying a timeshare is not for everyone. It’s a significant decision that requires careful thought and planning. Take your time to research and consider your options. Remember that a timeshare should fit not only your vacation lifestyle but also your financial situation. By following these tips, you can make a more informed decision and enjoy many years of happy vacationing.
This guide aims to arm you with the knowledge you need to navigate the complexities of buying a timeshare, ensuring that your vacation investment brings joy rather than stress.
