FEBRUARY, 19 2018 Add to Favorites

Timeshare: The Basic Facts

Before anyone buys a timeshare through a for sale by owner ad, a broker, or a timeshare resale company, it is well worth doing some research first.


If you choose to buy a timeshare using a timeshare resale company the benefits include the professional company's knowledge and experience in the industry.


How does a timeshare work?

Timesharing is one form of vacation ownership. Traditionally you are purchasing the right to vacation for a particular period each year at a specific resort. Timesharing offers a more flexible type of vacation than is typically available through either travel agents or hotel arrangements. It includes options like points-based memberships and biennial usage. Also, many timeshare ownerships enable you to exchange your period at one resort for a different week or even unit size at another.


Timeshare or hotel?

Timeshare resorts typically offer more space and a wider variety of amenities than conventional hotels. Hotel rooms on average consist of studio rooms with small bathrooms. A timeshare, on the other hand, offers condo-style units with more than one bedroom, bathrooms, separate living rooms, dining areas, and complete kitchens.

The majority of timeshare resorts also provide arrays of amenities within the resorts. On-site activities covering sports, recreation, and social events are offered to suit both children and adults. A lot of resorts also offer swimming pools, tennis courts, access to on-site golf courses, as well as other options like horseback riding, skiing, and beach access on-site a well!


Buy from the owner or purchase via a timeshare resale company?

Buying timeshares from the owner can involve searching through thousands of timeshare resales. Then when you have chosen a resort, you will be required to work with the timeshare's owner negotiating prices and completing the sale, sometimes even having to hire a third party company to complete the transfer.


Going through a timeshare resale company means not having to search or negotiate or file the paperwork yourself. An experiences timeshare resale company can search on your behalf and then present you with a choice of your best options. It is similar to buying a house. The timeshare resale company negotiates with the seller and then provides you with the most attractive offer.


All that you have to do is have a pen to sign the paperwork. Buying timeshares with timeshare resale company gives added peace of mind because you work with licensed professionals who have to follow state laws and have guidelines with which to adhere if they want to retain their licenses.


How is a timeshare's price set?

A timeshare's price depends on different factors. When planning to buy timeshare weeks, you need to recognize that these prices change depending on factors like the time of year, the location, the resort's amenities, and the size of any unit. It may be that the resort that attracts you only sells timeshare points, usually priced separately. Also, timeshare resales cost much less than those purchased directly from a resort's developer.


More than 50 percent of the costs associated with buying timeshares direct from resort developers goes directly to the timeshare property's sales and marketing, which invariably means over-inflated prices on these primary market prices. Whereas purchasing a timeshare on the secondary market from a resale company eliminates a vast majority of that marketing overhead.


When you purchase a resale timeshare, the only expense you face is the timeshare property's fair market value. Timeshare resale buyers not only enjoy using the timeshare unit, they also save, on average, between 30 and 80 percent off the developer’s asking price.


The affordability of buying a timeshare

What can you afford? How much are you willing to pay? Some timeshares can attract financing to help offset the purchase price. And never forget, a timeshare resale is a much better value than buying directly from the resort.


The majority of timeshares require you to pay a maintenance fee annually, but this can be cheaper in the long run when compared with the cost of a hotel room every year. A lot of timeshare properties charge annual maintenance fees of between $500 and $1,000, but this covers a stay for a whole entire week in a two-bedroom condo, whereas a similar suite at a hotel will cost upwards of $300 PER NIGHT ($2100+)! Quite a huge saving!


What about timeshare exchanges?

Another very good reason for buying a timeshare is the flexibility it gives you to exchange your week for another. As the owner of a timeshare it is possible to become a member of a timeshare exchange company, or in the case of larger resort management companies you will automatically be enrolled in their internal exchange program, so you are able to swop your week with any number of other timeshare owners. This aspect means you can return to your home resort each and every year or you can choose to trade with any affiliated resort anywhere in the world.


How do deeded, leased, and licensed timeshares differ?

The majority of timeshares are either deeded or leased for a set number of years.


Deeded timeshares are similar to conventional real estate purchases. When you have bought a deeded timeshare you effectively own it outright. You can then sell it, rent it, or even will it to someone else. Deeded timeshares (generally) have no expiration dates.


Leased timeshares give you the right to use specific weeks at the property for a number of years usually between 20 and 99. Leased timeshares may or may not have a deed also; the difference is the deed will specifically dictate an expiration date to the ownership. This right will generally return to the selling resort when the lease period ends. When you buy timeshare resales with leases, it's advisable to enquire how many years remain on the contract. Disney Vacation Club is one example of leased timeshares that have an expiration date attached to them.


Licensed timeshares typically require you to join a “vacation club”. In so doing you receive points which can then be used to buy vacations at a variety of resorts. Some do not even consider this type of ownership as proper timeshares; since you are only joining a club and do not really own any property.


Timeshare use periods

Timeshare use periods fall into three main types. These are:

  • Fixed Weeks allow you to use a unit for a specific week each year for the whole time you own the property.
  • Floating Weeks grant you the use of a unit at any time in the year based on the particular resort’s availability.
  • Flex Time is similar to a floating week, except there are restrictions. The flex time defines a season when you can use the timeshare week. Because seasons vary between resorts flex time is defined differently at different locations.


Maintenance fees

When you have bought a timeshare, average maintenance fees can range between $500 and $1,000 each year. This fee covers the shared costs of up keeping the units and the resort's common areas.


Timesharing can be a confusing thing to understand. This is why we at Timeshare Recyclers feel that the best thing a consumer can do is to educate themselves. Keep returning to www.timesharerecyclers.com for many more interesting and educational news & articles in the future!


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