Timeshare worth it?
How to make the most of a timeshare agreement
Timeshares aren’t for everyone. Some people enjoy a reliable vacation while others are desperate to shed their agreements. Here are a few qualities happy timeshare owners have in common: 1 Recognize it’s not an investment
The average cost of timeshares sold by resort developers has risen over time and now tops $20,000, according to industry trade group American Resort Development Association. Unethical salespeople use that fact to imply, or even assert, that the timeshare you buy will increase in value. That’s not true. On the resale market, the typical timeshare sells for 10 percent or less of what the original owner paid, said Brian Rogers, owner of Timeshare Users Group, one of the oldest forums for timeshare owners. TUG, eBay and other sites are full of “for sale” ads from owners willing to sell for just a penny. In addition to the upfront cost of buying, owners must pay annual maintenance fees, which currently average about $900 but can total $3,000 or more for higher-end properties.
2 Plan ahead
Understand what you are buying into. Some timeshares are for a specific week each year, while others are “floating weeks” that can change from year to year. There are also “points” that can be converted into reservations for days or weeks at timeshare resorts. Most timeshares offer exchange opportunities that allow owners to stay at other resorts if they plan well in advance. The details can vary quite a bit, so look closely before you sign.
3 Don’t buy a timeshare on vacation
Timeshare salespeople are often much better at selling than you are at resisting — especially when you’re relaxed and having a great time. That’s no state of mind to be in when you need to sign an important document. If you’re interested in a property, try renting from an existing timeshare owner to see how much you like it. But don’t sign on the spot. “I tell my friends, ‘Don’t ever go to a presentation.’ They’ve gotten very hard-sell,” Angie McCaffery, a timeshare devotee.
4 Don’t pay retail You don’t have to
pay full price. McCaffery and her husband Mike have paid as little as 50 cents for “used” timeshares. They bought their first timeshare in 1994 from a developer, paying $15,000 for a two-bedroom condo in Palm Desert, California. Later they learned they could save thousands of dollars buying directly from other timeshare owners who no longer wanted to pay their annual maintenance fees. They’ve even paid as little as $1 total for two timeshares, a one-bedroom unit in New Orleans and a two-bedroom unit in Ruidoso, New Mexico. “You hear all the nightmare stories, but if you know how to work it and you can plan ahead, it’s the best thing ever,” McCaffery said. This article was provided to The Associated Press by the personal finance website NerdWallet.