Eight Things to Know That Will Ensure that You Don't Think Help, "Sell My Time Share Now"

Timeshares have certainly evolved over the years from hard to manage money pits into pretty solid options for frequent travelers. The cries of, “Help, sell my time share now!” are not as common as they used to be but unfortunately some people are still stuck in some bad deals. Here are the top 8 questions I am continually asked by people considering buying a time share selling a timeshare.

1. How do I sell my timeshare?

This is not an uncommon question at all and is actually usually asked before that actual sales transaction is complete. Selling a timeshare is not like selling a residential home because there are so many other factors to consider. I cannot possible cover all of the intricacies of the deal here, so what I will tell you is that you need to educate yourself, you may want to consider hiring a broker, and you should talk to the resort with which you own, they could very well assist with the sales transaction and may have a list of interested potential clients.

2. How do I rent my timeshare?

After how to sell my timeshare, this is the second most asked question and is also usually covered in the actual sales process as well. Rental will significantly depend on the actual resort at which you own. Some resorts will request that you book your vacation a year in advance or put your credits in the hat for rental. While other resorts will leave the rental solely up to you. If you are in the later case contacting a local rental agency is the way to go. Find one that specializes in local holiday rentals and give them the information that they need.

3. I just bought a timeshare, did I get a good deal?

I don’t know, but I can tell you that if you financed through a resort you paid way too much. I have found that over the years the people who pay cash for time shares end up getting much better deals. I can also tell you that on the timeshare resale market there are much better deals than in the new construction market.

You have to look at the finacials of a deal and look at what you are really getting. You must also take into consideration what you would have spent on travel if you had not bought a timeshare. Much of the value of a time share is relative. There are steps you can take to make sure you get the best deal, but in the end it is really about your perceived value.

4. Can I donate my timeshare to charity to reduce my taxes?

This is usually not a problem. But you must take into account that you are often dealing with foreign governments. You need to talk to your resort company and find out what the rules are regarding this issue. You may also find that the taxable value of a timeshare donation is much lower than the actual value if sold on the market.

5. What the Heck are Points?

Points are usually a resorts way of keeping track of what they owe you. Each resort has a specific point system and you are usually able to earn points for different activities like car rentals or credit card use. Points can add up and get you free stays at some nice places, but if you are not the type to keep track of things like this it may be more trouble than its worth. Think of points like frequent flier miles.

6. Why are there Maintenance Fees and What do They Cover.

When buying a time share you are actually buying ownership in a resort. Kind of like buying stock in a company. There is a cost of doing business and the maintenance fees are what the the management company charges you to run the place. They cover the grounds fees, upkeep, salaries, and any other aspects of the business. Maintenance fees can be substantial and as long as you own a timeshare you will be required to pay your dues.

7. Are Timeshares a Good Investment

Timeshares are not a good investment when compared with other forms of real estate but they do have the potential to make you a profit in the long run. That said, you must pay the right amount when you buy and wait for the right time to sell.

There is also a different way to look at this investment. If you are planning to travel for 2 weeks per year, figure out about how much you are planning on spending on those 2 weeks. Look at this 2 week expenditure over the long term and see what the numbers say. If the timeshare deal you are considering is less than this expense then you have a winner.

8. Should I Buy a New Timeshare or Something on the Resale Market?

I would start buy looking at the resale market. Many people unload their timeshares at a steep discount because they are simply tired of having them or they are too old to travel. There are lots of good deals out there. If you don’t see what you are looking for go for one of the more modern timeshare deals that has more perks. Builders will often make steep discounts for cash buyers.

Timeshares have the potential to be money well spent but they will also continue to be a luxury item. If you are considering buying your slice of paradise read the fine print, do your research, know what you are buying, look for a good deal, and pay cash.