Timeshare 101 - How to Choose a Timeshare
Not withstanding if Timeshares are a waste of $$ or worth it, here are some guidelines to chose a timeshare
Why timeshare? the accommodations are far and away larger, of better quality, and more suited to a family on the road. However, timeshares have a bad reputation due to selling practices.
Check out this user group and do research before buying. Most first time buyers buy impulsively and do not plan it.
Timeshare User Group1. If your intention is to go to the same place each time, then buy there and do not rely on your ability to trade there. For example, if you like a particular resort in Mexico and you intend to visit there each year, then that is where you should buy. But do your research to find out the pros and cons of that resort.
2. If traveling to different places is a priority, then buy into a company that has multiple resorts.
3. Once you’ve pinpointed where you want, start watching auctions on eBay, without bidding, to see how much things are selling for. Do not bid until you figure out what the going rate is. Never bid beyond the average selling price. In most cases, there will always be another listing. For a first time purchase, buy from a seller specializing in timeshare sales on eBay. There are also transfer costs ($50 to $300) and closing fees ($300 to $500). Annual maintenance fees could run from $300 to $2,000. Closing may take as long as three months.
4. Try renting before buying. Don’t fall for the sales presentation. Do not buy from the developer.
5. Like a condo, resorts too can be subject to a special assessment. Call the management company and ask when the last special assessment was and if any are being contemplated. If a special assessment has happened recently, you’re probably good for a while.
6. Off season weeks are worthless. Do not buy one.
7. Pay particular attention to maintenance fee levels. Too low a fee and the resort will probably be poorly maintained. Too high a fee and you would be better off trying to trade in using a more economical resort.
8. Once you purchase, start planning two years in advance to book your reservation.
