If owning an entire house or condo seems a bit too much, there is always the option of buying a timeshare. It’s definitely a more flexible option: if you decide you want to vacation somewhere else that year, you can just sell your week or rent it out. And these days, many timeshares work a little bit differently than they used to. Instead of buying a week (or more) per year, you can buy points or credits you can use to stay in various resorts in different places. The downside is of course that you’re not the only owner of the property. You can’t leave your clothes in the closet, and you can’t visit whenever you feel like it. But it certainly is a convenient and affordable way to vacation. You don’t have to worry about maintenance, and you always get to use the amenities of the resort where your timeshare is located.
Buying Timeshares
Before buying a timeshare, there are some important things to keep in mind:
- If you’re buying at a resort you’ve never visited, rent a unit there for a week before purchasing anything. There’s nothing like a first-hand experience. While you’re there, look at how the property is maintained and what the amenities are like. Look at the maintenance budget. Talk to other timeshare owners and ask about their experiences.
- Buying the best possible unit in the most popular season at that particular resort will give you a lot of leverage when it comes to exchange options.
- Find out what the exchange options and member benefits are. Ask about the cancellation policy.
- Check with the Better Business Bureau to see if any complaints have been filed against the developer or the management company.
- Each state has it’s own, pretty strict, laws when it comes to buying and selling timeshares, but there are several different kinds of so called “vacation ownership”. Make sure that what you’re buying is definitely a timeshare, registered as such under that particular state’s laws.
- Get everything in writing and take it with you home to read through carefully. Take some time to consider your investment before making a decision. You might also want to have your lawyer take a look at the contract.
Selling Timeshares
Selling a timeshare can be a bit tricky. There are many shady companies who will offer to sell it for you, but before you agree to anything, make sure to do your homework and try to learn as much as you can about how to sell a timeshare:
- Check with the Better Business Bureau to see if there are any complaints filed against the company.
- Are their agents licensed real estate brokers in the state where you’re selling your timeshare?
- Will they allow you to sell or rent your timeshare on your own while they are marketing it?
- What are their fees and/or commissions?
- Are there any other costs?
A good policy is to not pay anything in advance, and only do business with companies that bill you after they have sold your timeshare. Always make sure to ask the company for everything in writing before signing anything.
If you are looking for more information, The American Resort Development Association (ARDA) is a great source when it comes to both buying and selling timeshares as well as other forms of vacation ownership.
