LANGLEY AIR FORCE BASE, Va. –
Taking your family to a destination such as Miami or Washington, D.C. can be a great adventure. As travel and tourism has become increasingly popular over the years, so has the decision to invest in timeshares.
Timeshares can produce great benefits for a family: discounted upfront travel costs, easily manageable vacation planning, and there is no longer a need for travel agencies or booking websites. However, a timeshare is a very large purchase, and the decision is as serious as buying a new vehicle or home. Therefore, it is important to be mindful of the obligations and expectations associated with purchasing a timeshare before agreeing to buy one.
Whether you're in the market or find yourself suddenly presented an opportunity, ask a wingman for a sanity check before committing, and do a web search about the deal ... or to learn about timeshares in general. Also, watch out for today-only deals--this technique is as old as sales itself, and usually indicates something a buyer should avoid.
Purchasing timeshares is a complicated, high-pressure process, so here are a few considerations to keep in mind while researching shared property.
Purchasing a timeshare is a binding contract
Buying a timeshare contractually obligates you to make payments on your share of the property. This means you will have to make payments every year until the timeshare is paid for, regardless of whether you visit the property, or ever take a vacation. Even after it's paid for, there are still taxes and maintenance fees. In some states, you may be entitled to a brief rescission period--typically between seven and ten days--to cancel the contract.
However, if your state does not have a rescission period or you fail to cancel the contract before the deadline, you will be responsible for the payments. Further, the timeshare sales business uses high-pressure techniques to ensure a sale. Do a web search for high pressure sales techniques and know them in advance. This is easy, and it will help you recognize whether it's a legitimate deal. Remember--if there is no rescission period, you are stuck when you sign--regardless of how you feel the next day.
Beware of additional fees and costs associated with timeshares
Timeshares often include fees that are not mentioned in the initial package price, such as annual fees to cover maintenance, taxes and utilities. Consumers report spending hundreds of dollars on additional costs and fees every year. The fees are usually described in the purchase agreement, however, so take care to read it--completely, before buying a timeshare.
In any case, be realistic about the package price and recognize there are likely fees and additional costs not accounted for in the final price. If you decide to purchase a timeshare, set aside extra funds to cover these and other unexpected costs. Again, you still owe these fees regardless of whether you use the timeshare.
Selling a timeshare is very difficult
Unlike most real estate investments, timeshares quickly depreciate in value. In fact, the Federal Trade Commission has suggested that consumers treat timeshares as vacation homes and not as good investment opportunities.
If you anticipate selling a timeshare, if you are lucky, you should expect to receive only a portion of your original purchase price from the sale, even if you are selling the property back to the land developer or to a third party. Many times, in order to avoid the continuing maintenance fees, a seller will end up giving the timeshare to another party.
Additionally, those who attempt to sell their timeshares may be exposed to scams and consumer fraud. The FTC warns to be suspicious of unsolicited calls or emails regarding your timeshare, and to always investigate potential resellers before agreeing to any fees or new contracts. Selling your property through a legitimate realtor or broker reduces the risk of fraud, but there will likely be a substantial fee associated with the sale.
Timeshares can offer an alternative to paying for hotel rooms and booking trips through travel agencies, but, as with any large purchase, you should think it through. Take time to think about your decision and whether a timeshare is truly worth your family's time and energy, and as always, ask a wingman to talk it over with you--especially if it's a largely unplanned or last-minute purchase.
Remember, should you have any questions about a timeshare contract, seek legal advice before deciding to purchase a timeshare.