An estimated 9.9 million households in the United States own a timeshare product — but households that have never invested in a timeshare before may be wondering just what this type of vacation product offers. There is often confusion about how the timeshare industry works and how it can impact your vacation plans. Here is what you need to know if you’re considering timeshares.
Just What Is a Timeshare?
Timeshares are a type of vacation ownership in which multiple buyers own the right to use a resort property at different times of year. Timeshares are available at resorts, apartments, and condominiums across the world.
One type of timeshare arrangement offers fixed terms — in which a timeshare buyer has a specific week (or weeks) to use at the resort property each year. Other timeshares feature a floating use period, which offers greater flexibility in terms of weeks within a set “season” that a timeshare owner could use, though availability is usually first-come, first-served among owners who share the same floating period. Another common ownership type is points-based timeshares, which give the owner the greatest level of flexibility to book time at a resort or set of resorts within a brand.
While resorts and travel brands will often sell timeshare packages directly to customers, online marketplaces like SellMyTimeshareNow make it easier for interested parties to find timeshares at discounted prices.
How a Timeshare Works
When a household purchases a timeshare, they should clearly understand the terms of their timeshare contract. With a fixed-term timeshare, the household will have the timeshare for the same period every year.
Floating timeshares offer multiple weeks within a set “season” that households can choose from, but this typically requires advanced reservations to ensure they can get the preferred date. As more reservations are filled, the selection of dates to choose from narrows.
Many companies also offer points-based systems that allow owners to book anywhere within an internal network of branded resorts. Depending on the type of points-based ownership, it’s important to note that additional booking fees sometimes apply, particularly when an owner’s available points won’t fully cover a reservation. Many of these programs do, however, allow owners to bank or roll over a year’s points allotment for future use, enabling owners to save up for larger units, longer stays, or more costly reservations than their normal allotment would cover.
Timeshare Costs
Regardless of the specifics of the timeshare itself, most buyers can expect to pay an average of $23,940 in upfront costs for a timeshare. Costs vary based on the location and size of the timeshare and the time of year it will be used.
Buying a timeshare secondhand through SellMyTimeshareNow or other similar resources can significantly lower upfront costs, as pricing on the resale market functions similarly to pricing for used vehicles. As with other real estate transactions, buyers can pay the entire cost upfront or finance their purchase.
In addition to the upfront costs, timeshare owners pay an annual maintenance fee (which covers regular upkeep, landscaping, utilities and repairs). These maintenance fees average around $1,000 per year, but are known to increase each year at most locations. Maintenance fees are required whether an owner purchases directly from a resort or on the resale market.
In addition, properties may occasionally be charged an additional assessment fee for major renovations or repairs, such as to address damage from a natural disaster. Because of this, households should consider both the upfront and ongoing costs of a timeshare when deciding whether to commit to this purchase.
Reasons to Consider a Timeshare
While timeshares have notable expenses that should be considered, the industry continues to grow because of the inherent advantages a timeshare can offer over traditional travel booking (particularly when it comes to using tools like Airbnb or VRBO).
With a timeshare, households can enjoy a familiar location to return to each year. This reduces much of the hassle associated with booking and planning a vacation while also eliminating the stress that can come from being uncertain about the quality of your accommodations.
Though the specifics can vary by location, timeshare properties typically offer resort-like amenities and services to ensure a high-quality experience. The properties themselves are well cared for — something that isn’t always guaranteed with other vacation rentals.
Whether you purchase a studio, one-bedroom, or three-bedroom timeshare, the accommodations will generally be larger and have more amenities than a hotel room of a comparable price, such as separate bedrooms, living rooms, and full kitchens. This makes timeshares well suited for family vacations, with options that match your group size and specific lifestyle. And of course, timeshare resorts are generally located in highly desirable areas, whether your dream vacation involves the beach or the mountains.
Owning a timeshare offers more flexibility than you might think. In addition to the points system used by many resort companies, resources like SellMyTimeshareNow allow timeshare owners to rent their vacation weeks to others if they won’t be able to use their property. This can help offset the cost of timeshare ownership while also bringing in extra funds that can be used for other vacation travel.
Make the Right Vacation Plans
Buying a timeshare may not be right for everyone. Still, for households that want a dependable vacation spot that they can return to again and again, a timeshare could easily become the preferred way to manage vacations.
By understanding the ins and outs of individual timeshare offerings, making use of resources like SellMyTimeshareNow to find more affordable options, and considering your family’s preferences, you can make a decision that will fit your vacation needs for many years to come.
Photo by Simon Hurry on Unsplash
