Important Considerations When Buying a Timeshare

Most people know that if they are offered a “free” vacation, there is probably a high-pressure presentation involving the sale of timeshares or similar vacation ownership programs. One way to know what to ask at the presentation is to do your homework ahead of time.

Buying a timeshare is an expensive and important decision. Many prospective buyers may feel overwhelmed when thinking about buying a timeshare. If you plan on buying a timeshare, there should be multiple questions and concerns you have considered before making this financial decision. If you are reluctant, look at some factors before signing the agreement.

The following guidelines provide you with questions and considerations preventing you from missing important criteria that should be weighed against the timeshare you are buying.

There are many ways to buy a timeshare and it doesn’t always involve going to a presentation. Many people that are serious about buying, go through a broker.

If you are buying timeshare through a broker, make sure that he or she is licensed. Look into the broker’s reputation and the success rate. Never hesitate to ask any questions related to your timeshare.

• Where are your properties located?  Ask for specific examples.

• What are the chances of getting a timeshare in a desired or high peak week?

• What is the annual maintenance fee required for upkeep of the properties? 

• How much does the fee go up in cost each year? What does the fee cover?

• How far in advance do I need to make reservations?

• How many properties are in your program?  Ask to see the locations on a map.

• Will I have access to other timeshare properties?

• Does the timeshare company have a bonus week program?

• Can you exchange or trade your timeshare without joining an exchange company?

If you are going into a timeshare, try to look at the property or one of the properties ahead of time. Pictures can be misleading, so it is important to check out the unit and the premises ahead of time. 

If you cannot see it, ask family members or friends who may live near the location to go and see the unit.

If you go on a “trial” membership, talk to other members. Try and get references from other members. When you go and see the unit ask the neighbors what they think of the amenities and the management.

Some questions you may consider:

• What they think of the properties themselves (cleanliness, location, amenities, etc.)?

• How long have they been a member?

• Are desired dates easy to get without much problems?

• What do they think about the management company?

• Ask about the maintenance fees and other fees. Are they reasonable, what is covered, and how often are they raised?

• Is it easy to make reservations and exchanges?

• Are developers planning on improving or renovating any properties in near future?

Before you jump in with a timeshare, look in the secondary market and auction sites.  You can find the exact same program for a significant discount. 

Do your research ahead of time to find out the prices in the area you are buying. Compare different resale companies and their reputation. When buying in the secondary market, it is especially important to ask about the details of the program.

Be sure to ask if you get the same benefits as you would if you bought direct from the company.

While buying a resale timeshare, ask the seller why they are selling it. If it has to do with the timeshare company, you may want to ask more questions.  There may be an underlying problem with the management company or the property.

Also make sure that there are no overdue payments for maintenance fees, outstanding loans, or any other fees.

If you examine all of these important considerations, you should be able to make a smarter decision when purchasing a timeshare.