Comprehensive Guide to Acquiring a Timeshare

Understanding the Timeshare Market

Before diving into the specifics of a timeshare purchase, it's important to grasp the current state of the market. According to the American Resort Development Association (ARDA), the timeshare industry saw a 7% increase in sales from 2018 to 2019, with the trend continuing upward. The average sales price for a one-week timeshare in 2019 was approximately $22,942, with an average annual maintenance fee of $1,000. However, these figures can vary widely depending on location, brand, and amenities (ARDA).

Key Considerations When Buying a Timeshare

Verify Broker Credentials

• Ensure the broker is licensed and has a reputable track record in timeshare transactions.
• Inquire about their success rate and ask for references.

Ask the Right Questions

• What is the annual maintenance fee, and how often does it increase?
• How likely is it to secure a timeshare during your desired week?
• What is the earliest date you can make a reservation?
• Are there additional benefits included with your timeshare?
• Does the timeshare company offer a bonus week program?
• Can you exchange or trade your timeshare without joining an exchange company?

Understand the Point System

• Some companies use a points system that may affect the timeshare's value.
• Determine if purchasing a timeshare with a points system is more beneficial than a resale.

Assess Demand and Location

• High demand for specific weeks or locations can drive up prices.
• Larger units often have higher trade and exchange value.

Evaluate the Timeshare Company

• The reputation of the firm owning the timeshare resort is a critical factor.

Inspect the Unit Personally

• Visit the unit to verify the accuracy of the description regarding location and size.
• If a visit isn't possible, ask family or friends nearby to inspect it on your behalf.

Gather Feedback from Current Owners

• Ask neighbors and other timeshare owners about their experiences with the resort's amenities and management.
• Inquire about the ease of securing dates, satisfaction with the management company, and frequency of maintenance fee increases.

Research Market Prices

• Utilize online resources like eBay and bidshare.com to compare prices in the area.

Consider Resale Timeshares

• Resale timeshares can often be purchased for nearly half the price of new units sold by developers.

Read Contracts Thoroughly

• When buying a new timeshare, scrutinize all contract details before signing.
• When considering a resale, ask the seller about their reasons for selling to identify any potential issues.

Check for Outstanding Fees

• Ensure there are no overdue maintenance fees or property taxes, as these will add to your overall cost.

By meticulously evaluating these factors, you can make a more informed and confident decision when purchasing a timeshare. Remember, a timeshare is not just a vacation spot; it's a long-term financial commitment that requires careful consideration.