Critical Questions to Ask When You Buy Timeshare or Timeshare Resale
Monday, March 1, 2010
People who are buying homes and residential real estate right now are doing so because this is an excellent time to buy. And many consumers are finding the same to be true when it comes to buying timeshares, timeshare resales, or other vacation ownership real estate.
Timeshare companies and timeshare developers who sell new timeshare are working hard to earn the timeshare sale … you may find them more negotiable than ever. But the best deals are usually available in buying timeshare resales from belt-tightening, budget conscious timeshare owners, who are anxious to sell their timeshare in order to get out from under annual timeshare maintenance fees and/or property taxes.
So if you are interested in taking advantage of the better-than-ever deals available in timeshare and timeshare resales, here are some important questions you need to ask before you sign on the dotted line.
Applies When You Are Buying Timeshare Either New or as a Timeshare Resale:
- Make sure you know the resort name and exact location. Pay special attention to timeshare resorts that have been built in phases because the description of the Phase I property could be very different from Phase V property. Know the specific address of the timeshare unit or the timeshare property usage you are buying.
- Know the annual maintenance fees, how much they have increased over the years, and the date of the last increase.
- Find out what the property taxes are, if they are included in your maintenance fee, and how and when you pay them if you are responsible for making the payment yourself.
- In a points based system, know the number of points you are buying.
- Know whether you are buying a fixed or floating timeshare interval.
- How many rooms are in the unit, what is the square footage, and can you see a floor plan?
- Find out both how many people the unit sleeps as well as the number of bedrooms. These will not be the same number!
- Ask about the view from your unit. Are you beachside? Have a scenic view of the mountains? Or are you staring at the parking lot? Desirability of view can affect the value of the timeshare.
Applies Specifically When You Are Buying Timeshare Resale:
- Learn what, if any, privileges of timeshare ownership cannot be transferred in a timeshare resale.
- Know how you will handle the timeshare title transfer, the escrow account, and the closing contract.
Applies Specifically When You Are Buying Timeshare New From the Resort or Developer:
- Know the exact sales price you will be paying and the duration and interest rate of the timeshare mortgage if you are using developer financing.
- Know if you can transfer to another financing source without paying a penalty on developer financing and if there are time limits for doing this.
- Find out if there are perks, loyalty programs, or benefits you can take advantage of because you have purchased a new timeshare at the developer’s full price.
And while all of these are critical questions to ask before you buy timeshare or a timeshare resale, based on the situation, there may be many other important questions to ask as well. To make sure you wind up owning a timeshare that fits both your vacation needs and your budget, do three simple things:
- Take your time, don’t let anyone rush you.
- Do your own research so that you know exactly what you are buying and the terms of the sale.
- Do not “settle” for a property that is almost-right. There are too many great deals in timeshare sales and timeshare resales for you to buy anything less than a timeshare that is ideal for you and your family to enjoy for many happy years.