5 Questions To Ask Before Buying A Timeshare

The are many stereotypes associated with timeshares. However, it’s not always easy separating fact from fiction, especially for an industry that’s up against stiff competition, including fractional ownership. Considering the escalating costs of travel and the evolving preferences of modern travelers, it might be opportune to re-examine the timeshare industry and its relevance in today’s travel landscape.

The origin of timeshares can be traced back to the early 1960s when a group of ski resort developers in the French Alps began renting out space in their hotels to vacationers. This model quickly caught on in the United States.

The main difference between timeshare ownership and fractional ownership is the latter grants you partial ownership of a property’s title, while timeshare ownership allows you to own blocks of time to use a property. In essence, fractional ownership means you co-own the home with several other buyers, while timeshares allow you to own a period of time to spend at the property, sharing vacation rights with others.

Although not the preference for everyone, timeshares remain a very popular vacation option for many people. According to a survey by the American Resort Development Association (ARDA), which advocates for the industry while working to protect and educate consumers to get the most out of their timeshares, over 2.3 million households in the United States own a timeshare, and many of these owners are repeat customers.

Jason Gamel, President and CEO of ARDA, offers five questions to ask before buying a timeshare:

How Do I Make Certain I’m Buying the Right Timeshare for Me? Start by sizing up your goals as a vacationer, especially where and with whom you envision traveling. Next, consider the developers behind the timeshare: allegiance to a particular hospitality brand can pay benefits from points on loyalty programs to peace of mind. Finally, consider the access available from the brand you buy into, whether it’s a standalone resort or a major network with properties in multiple destinations.

Onsite visits are great for getting a feel for the quality, amenities and services a vacation ownership brand offers, especially through short-stay “mini-vacation” programming offered by many developers. Talking with other owners about their experiences and the quality of management is also beneficial. Finally, read all documents carefully to understand the vacation product you’re purchasing, request explanations of mystifying details and inquire if the resort is a part of ARDA, whose members adhere to a strict Code of Ethics.

How Much Can I Expect to Spend on a Timeshare?

The cost of a timeshare varies from unit to unit, resort to resort, by the time of year and even owner to owner, depending on how often they vacation. According to the ARDA International Foundation (AIF), the average price of a timeshare transaction is $23,940, a figure that has remained relatively consistent for the past five years, with variance depending on levels of luxury from single to multiple bedrooms, for example. In addition to the purchase cost, owners will also pay annual maintenance fees which help keep the accommodations and amenities up to date. For the five years ending in 2021, annual maintenance fees paid by timeshare owners rose only 15% to $1,120, while the annual cost of a seven-night hotel stay before fees and taxes jumped 24% to $1,756. “When you spread the average cost and maintenance fees over 20 or 30 years, the economics are very compelling,” notes Gamel.

Once I Purchase, How Do I Get the Most Out of My Timeshare?

Start by doing your research. Hospitality brands have robust websites to inform about their vacation clubs as well as tutorials on making reservations and using the product to the fullest. Be sure to visit LoveMyTimeshare, a social community for enthusiasts and insiders dedicated to correcting misconceptions and trumpeting the many “people, places, and things” to love about timeshares. Most resorts located in popular areas such as Orlando or Vegas offer an abundance of onsite activities from golf courses to swimming pools to cultural centers with hands-on activities to delight all ages. “The beautiful thing about vacation ownership is that you get the option to enjoy yourself on and offsite, with a comfortable, fully furnished, well-maintained space to return to at the end of the day,” adds Gamel. “There are so many things built into the typical resort experience, that you are going to be engaged however you spend your time.”

What are My Options if I Don’t Want to Stay at My Timeshare Every Year?

If you think you’re bound to visiting your timeshare like clockwork, think again. Timeshare exchanges enable owners to trade “points” for comparable accommodations or travel-related services and experiences. The first option for exchange is to use an internal network through your developer that allows you to book properties within their existing portfolio. The second option is to use an external exchange company – the largest are RCI and Interval International – to open another network of resorts. Points can also be exchanged to book cruises, car rentals, sporting events and more.

What are My Options if a Timeshare No Longer Fits My Lifestyle?

The Coalition for Responsible Exit, a program created by ARDA in partnership with leading resort developers and exchange companies across the vacation ownership industry, provides resources to help owners responsibly and safely exit their timeshares. “Unfortunately, fraudulent third-party exit companies have swindled owners out of thousands of dollars with false promises about selling their timeshare,” says Gamel. “It’s crucial that anyone looking to exit their timeshare utilizes the materials found at ResponsibleExit.com to ensure they aren’t falling victim to one of these scams.”