According to ARDA, the average price of a weekly timeshare interval in the US is $24,140. But what do you get for this sort of money? How do you know that a timeshare is right for your needs?
Well, a better question to ask first is: how do timeshares work? There are a few timeshare types nowadays to choose from. Learning about these options and how they work will take you a step forward into understanding whether you want a timeshare or not.
If you do decide on a timeshare type, you then need to understand the potential pros and cons of getting such a timeshare, along with any tips on how to go about getting one. We recommend you read on to get the lowdown on all of what we’ve just mentioned in this comprehensive guide.
How Do Timeshares Work
Timeshares are vacation properties that function beneath a model of shared ownership. With a standard timeshare agreement, you might share a single property or have access to various properties between a certain number of people.
It’s typical that most people will have the right to use the timeshare property for one week in the year. Some peak demand times (like typical paid holiday times) in the year might be more costly than less popular times.
Types of Timeshares
There are a few timeshare options on the table these days. Some are more popular than others. In general, there are three main categories: deeded, non-deeded “right to use”, and points-based timeshares.
Deeded timeshares are ones where you own a portion of the property. Non-deeded timeshares are ones where you have the right to use a timeshare property or properties for a set period.
In the past, timeshare companies would restrict you to one vacation property throughout your timeshare tenure. You might also have had restrictions with changing the time of the year and the length of time you wanted to stay in your timeshare.
These days, the majority of timeshare companies use a points-based system. This type of system offers you much more flexibility with your timeshare.
For instance, on a points-based timeshare system, you might be able to change the time you want to stay in the timeshare property by purchasing extra points. And many timeshare companies that use this system offer multiple properties and locations for you to stay in as part of your timeshare contract!
Tips for Buying a Timeshare
The first thing you should do if you are thinking about buying a timeshare is research like you’ve never researched anything before! The idea is you get to learn what the market is all about. Plus, you’ll eventually be able to gauge what timeshare prices make sense and which ones are priced way over the odds.
Impulse buying a timeshare is the worst thing you can do. You need to know about all the terms and conditions and what you are signed up for in the long term. Otherwise, you may get buyer’s regret to the point where timeshare cancellation is on the cards.
Also, remember that not everything is included when you buy a timeshare. For instance, you’ll need to pay for transportation, food, and other activities while you are there. So try to figure out how much that is going to cost you each year and factor that in before you decide to buy a timeshare.
Another tip is to make sure you are familiar with the timeshare location. It might be worth you having a couple of vacations in that area before you sign the dotted line on a long-term timeshare contract.
One last tip is to ensure you get transparency with all the costs associated with the timeshare you’re looking at buying. Many timeshare companies charge an annual fee alongside the initial fee. Sometimes this fee can seem pretty extortionate and can even total up and surpass your initial fee amount after a couple of decades or less!
Tips for Selling a Timeshare
Since not all timeshares are the same, there are different timeshare selling processes.
Selling a deeded timeshare may be a much more straightforward process as you have ownership. Selling a non-deeded timeshare may be more difficult due to limitations in your contract. It’s common that there are resale avenues set up for point-based timeshares as well.
Either way, the first step for anyone wanting to sell their timeshare is to look through your contract again. Spend time finding and noting down some of the important details.
Next, you need to figure out what your timeshare’s value might be. To do this you can research online to try and find similar timeshares for sale. You can also look into different timeshare selling companies to help you out with this, and the whole process if you wish.
In the end, you do have to be realistic about the value of your timeshare when you sell it. Timeshares often lose a lot of value over time, so be prepared to get a valuation and offers that may be below what you were hoping for.
A timeshare is a big thing to commit to, so you should set aside ample time to figure out the question “how do timeshares work?” Once you are satisfied with your research efforts, you can then feel more confident reaching out to parties about your interest in getting a timeshare.
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