Timeshares can provide a good way for people to enjoy using vacation property without the costs of owning and maintaining a year-round vacation home. Before buying a timeshare, however, it’s wise to learn a few things about timeshare sales. The first thing to consider is that buying a timeshare means entering into a legal contract, and these contracts can be long and confusing. As such, it’s best to review the sales contract carefully before signing on the dotted line. It’s also smart to have a lawyer review the sales contract, especially if it includes a lot of difficult legal jargon.
While timeshare ownership does offer cost savings when compared to buying a full-fledged vacation home, timeshare sales also involve upfront expenses and continuing costs, some of which can be hefty. For example, buying a timeshare may require spending a few thousand dollars or several thousands. There are even some that reach the $30,000 US Dollars (USD) range, though some people are able to find very inexpensive timeshare deals that cost them just a few hundred dollars. Timeshare owners also incur maintenance fees, which can amount to a few hundred dollars per year. Maintenance fees may rise over time.
When considering timeshare sales from the buying end, it’s also important to understand the difference between buying a timeshare and buying real estate. In time, real estate may appreciate, and if owners sell it, they may actually earn a profit. Timeshares, on the other hand, are more likely to depreciate. For example, a timeshare purchased for $10,000 USD may only be worth $5,000 USD fairly soon after purchase. Essentially, timeshare owners purchase time at a vacation spot rather than ownership of the entire property.
Another important consideration is whether or not to buy a new timeshare. Choosing to buy a pre-owned timeshare can be a good option for those wishing to save money. Timeshare salesmen may try to convince buyers that brand-new timeshares are the best buys. While new timeshares do have advantages, buying used can save the buyer a considerable amount of money. Since timeshares typically depreciate over time, the second owner stands to save significantly on a timeshare that is only a few years old. Often, these properties are still in excellent condition.
One of the most important pieces of advice about timeshare sales is to perform due diligence before buying. Even if a timeshare seems worth the money in every way, a bit of investigation may turn up decided flaws. For example, some timeshare sales may not include all the perks the buyer is expecting. Additionally, some may require the new owner to take on the original owner’s debt, paying back taxes and overdue maintenance fees.
