Archive for Buying Timeshare

admin | May 3, 2011
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Buying a Timeshare

For most people, owning a vacation home like this, well, it’s as likely as winning the lottery. But, that doesn’t mean they can’t own a piece of one. It’s called a timeshare. Some people love ‘em.

Tom Hage (Timeshare owner): Here they treat us very well. They have good, you know, people contact, you know. We’ve never been turned away from any reservation. I think it’s worth it but, you have to get into the system to believe in the system.

So, how does the system work?

Lesson one is that while a timeshare involves real estate, it’s not really an investment like real estate. A timeshare is really more like prepaying for a hotel room or an apartment. A typical deal might be one week a year for twenty years. And the cost? All over the place but, fifteen to thirty grand is common. You’ve also got annual maintenance fees; couple of hundred bucks, maybe more.

You can buy a timeshare new from big names, no names, or buy ‘em used from specialty sites, even eBay. Either way be careful. There are lots of questions you should ask: How long does the deal last? Some are ten years. Some are deeded and can be passes down to your kids. Ask about annual fees. Are pets okay? Is your time a fixed week each year, or can you change it? Can you exchange for time at other resorts?

And don’t forget to shop around. Visit the resorts you’re interested in. You might even get a free or heavily discounted stay. Another way to protect yourself is deal with the majors; Disney timeshares, Hyatt, Marriot, Wyndham.

Bottom line, a timeshare can be a bargain if you know you can use it, and if you buy a timeshare right. But don’t let a quick decision get you in hot water. These things are easy to buy not so easy to sell. From money talks, I’m Stacy Johnson.

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admin | April 26, 2011
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Consider The Risks Before You Buy A Timeshare

There are both risks and rewards involved in buy a Timeshare largely dependent on which Timeshare company you choose to purchase these properties from. There are many people out there who have had nothing but enjoyment from their Timeshare properties while others have seen their dream vacation property turn into a nightmare and a money pit due to the fraudulent scam artists that have taken advantage of them.

Buying a Timeshare should be done with a great deal of caution and awareness of the potential risks. Think carefully about all the benefits as well as all the risk as you consider buying and of course, always read the fine print before you sign anything.

There are two types of Timeshare properties: Deeded and licensed to use. A licensed to use Timeshare is not a purchase so much as it is a long-term rental. These Timeshare agreements have defined expiration dates with the buyer paying for the right to use the property for the duration of the contract. A deeded Timeshare on the other hand is much more like a conventional real estate property purchase with the buyer receiving a deed which can be transferred in one’s will to their heirs. The price of a Timeshare depends on how much time per year the buyer receives and the right to use the property and what at time of year these dates happen to fall. It could also not be a fix week but a flexible week. Generally, flexible week Timeshares carry a larger premium than a fixed week depending on the week. The increased premium is due to the flexibility of use.

Buying a Timeshare is an important decision and it is not one to be rushed into. Read over any documents and contracts very carefully making sure that you understand all the terms and conditions spelled out there in. Never sign anything unless you completely understand what you’re agreeing to. You may want to have your lawyer look over the contract before signing and you should definitely speak to someone who owns a property at that Timeshare resort.

Before you buy a Timeshare, keep the following points in mind:

  • If you’re buying a Timeshare from a real estate company, verify that they are a licensed broker. If you’re buying from a timeshare resale company you are especially going to want to verify that they are a licensed broker. An easy way to verify this is for asking for their license number. Then you can verify it with the state department which deals with these kinds of transactions and knows the history of the broker. Be vigilant when you’re buying a Timeshare from a non-licensed firm. Your money is at stake and the non-licensed firm wouldn’t have much to lose. So, a greater chance of fraud exists.
  • A Timeshare is meant to be a vacation property rather than an investment. You may not necessarily receive a good investment if you choose to resell it.
  • License to use Timeshare should be approached with a degree of extra caution. If the company goes under or files for bankruptcy, you could lose everything.
  • If the property you are looking at does not have all the features finished being constructed, you may want to get it in writing that they will be completed by a specific date. This helps insure that they actually go through with finishing the project.
  • Don’t give too much credence to claims by the seller regarding the market value of the real estate or the resale value especially. These tend to go down when you resell them.
  • Do not be impulsive when buying a Timeshare. Read each and every paper very thoroughly and take adequate time in researching, analyzing and making your decision to buy a Timeshare.
  • And of course, get everything in writing.
  • Lastly, before you make a purchase, make sure the Timeshare company guarantees their exchange program. Many are involved in larger exchange networks such as RCI or Interval International but, not every company does this and it’s necessarily worth to purchase a Timeshare without a solid exchange program unless you’re certain that you’re interested in vacationing at that same property every year.

If you’re thinking about Timeshare ownership and want to learn more, you should visit WeOwnTimeshares.com. There’s a wealth of Timeshare information on this Timeshare ownership social network. It is free to join and you can setup your profile in minutes and you can begin sharing your Timeshare experiences and reviews of different properties across the world. Begin asking questions in the forum. Visit today and we’ll see you there.

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admin | April 26, 2011
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Buy Timeshares Online

Steve: All of these companies, over the time, and the resale companies that have popped up, really the internet is the great equalizer, isn’t it?

Jason: The resale market is kind of interesting because, you know, really until just the last few years there really weren’t a lot options, you know. If you purchased a Timeshare and say, 10 years later the kids grew up and you no longer had a need for it, you’re no longer traveling the way you used to travel and so, you decided to sell what would you do? And so, in some cases people would put an ad in the local newspaper. So, they run the Sunday ad, they spend a couple of hundred dollars and nothing happens. So, then maybe they call a local realtor, you know, and say “I’ve got this Timeshare I’d like to sell, can you help me sell it?” Of course your local realtor really isn’t going to have an interest or really the market for a Timeshare property. And so, it’s really a challenge and it’s really been the last few years with the growth of the internet that there really are legitimate, effective, viable means for selling a Timeshare.

There’s really two basic options inline. One is you can go to the broker. We actually are involved in a brokerage company called TimeshareHotDeal.com and there are some people that just really would prefer to have the assistance of a licensed real estate professional walk them through the sales process and I can certainly understand that.

Another option, and a candidly more popular option we’ve experienced, is the For Sale By Owner Model. Because what it allows you to do is spend a fairly small amount of money, advertise the timeshare and essentially advertise until it’s sold and closed for no commission. So, at the end of the day when those proceeds are distributed you get a 100% of those proceeds. You’re not paying a hefty commission to a broker.

You still need to be careful because anybody can have a website. The sixteen year old down the street can probably build you a Timeshare website by this time tomorrow. The key is, when you’re looking to use a Timeshare resale company, For Sale By Owner website, the key is to make sure that they really are going to have the best chance of delivering the results that you want to get that properties sold. And what that means is they need traffic, they need buyers. You’ve got to have exposure. And if you’re looking to sell Timeshare, it really boils down to two things: You need exposure and you need to price it right.

So, we talked a little about pricing. You could have an incredible property but, if you’ve over priced it, if there is many-many options out there for less money, it’s not going to sell regardless of the exposure. And then on the other hand you could have an incredible deal. You could be giving away your Timeshare but, if it’s advertised on a website that no one ever goes to, it’s not going to sell.

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