12 Questions to Ask Before Buying a Timeshare

1. What does it include? Typically you’re allowed a specific amount of time each year. Some include other perks like airfare, car rentals or food. Get it in writing.

2. What dates are you getting? Some give you fixed dates, others use a floating-week system. If fixed check if you can switch them occasionally. If floating, check how far ahead you can reserve.



3. Same place and time each year? This style of vacation doesn’t suit everyone. If you prefer to travel around, or like to be flexible, find out if you can trade dates or swap with other locations.

4. What do others think of the place? Are they happy with it? Do they like the lifestyle?

5. What will it really cost? Not just the obvious like maintenance, purchase or leasing fees. But extras like travel costs, taxes, closing costs and commissions.
Tip: Shop around and see what other units are selling for. If a lot are for sale at the same complex, it could be a red flag.

6. How does the cost compare to rentals, hotels or resorts in the area? This will help determine if it’s a good deal. When you stay at a hotel or resort, you won’t have any costs if you don’t travel. With a timeshare, you’ll pay much the same costs each year, whether you use it or not.

7.  How do five year costs compare with typical vacation expenditures? Some experts suggest you look at what you have spent on vacations over the past five years to estimate future costs.

8. Are there other forms of value? For example, even if you don’t save money, would you have a better vacation staying in a spacious 2-bedroom villa in a quality resort as compared to a hotel room?

9. What about resale values? Some locations have major tourist attractions nearby. Others feature special amenities, like world class golf or skiing. These could aid a sale in the future.

10. Is the company reputable? Check online, and with the Better Business Bureau where the company is based. Some buyers feel more comfortable if there’s a major name behind a property.
Tip: Ask for references from other timeshare owners. Check blogs and lists to learn from other buyers.

11. Deed or certificate of use? Experts say that a deed can offer more security. It also offers more of a guarantee that you'll get something back if the property goes under. Conversely, most certificates of use merely offer the right to use a property, almost like joining a club. If the property goes out of business, chances are your money goes with it.

12. What if you change your mind? Read the fine print. Most timeshares offer a cooling off period. This allows you to back out of your contract and still get your money back.

Learn more about timeshares, how to save for a vacation and how to spot a vacation scam.




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