When you are considering buyers a timeshare there are several things that you must consider prior to making the purchase. Many of these items are “forgotten” about when the representative is in the height of their sales pitch, but they are still a reality of the deal.
First you must consider whether or not you are actually going to use this timeshare as often as you would like. Timeshare contracts are very specific about the dates and times that you can have access to your rooms. If you do not use your “time” you still have to pay your maintenance fee.
Another thing to consider is the difficulty you may experience when attempting to trade your week with others at exotic locales around the globe. This is a perfect sales pitch item used to lure in the buyer who does not wish to return to the same spot every year. They tell you that you can trade your timeshare with people all over the world for their weeks in different locations. It sounds so glamorous and easy, but it is not. First you will have to find someone to trade weeks with in the place you want to go. If they want to come to where your location is, and at the time you have available, you will be able to make a deal. If you can pass that hurdle, then you will have to pay all the associated fees for trading your timeshare week.
It is also important to note all of the costs that come with ownership. During this high pressure sales pitch they are often lax in stating all the extra fees you will incur. There is, of course, the monthly mortgage payment as well as yearly taxes, maintenance fees and association dues. Many of the timeshare resorts are also including other amenity fees that have nothing to do with your ownership whatsoever. Many people find that after a year of ownership, there “guaranteed place to stay” during their vacations would of amounted to a lot less had they booked ahead at a resort.
An additional consideration to keep in mind with timeshare properties is resale value. There is none. Many people will purchase a timeshare spot and find they have to sell it for a fifth or sixth of what they owe. In Florida the rate of foreclosures on timeshare properties stands at nearly half.
There are probably many good things that are associated with timeshare ownership. They cannot be all bad or the practice would not be so prominent in high tourist areas, but there are many things that buyers should be aware of prior to making the commitment.
Timeshare sales are done in a very high pressure atmosphere. It is usually done in an overcrowded banquet hall on the premises so that they can put the pressure on the potential customer. The overcrowded atmosphere allows the sales staff to pitch lines such as “well there is so many people here today you better grab it before it is gone”. These high pressure tactics are often what gets them the sale and the new owner leaves the area wondering what just happened.
Timeshare companies generate their leads by offering incredible deals on amusement park admissions or large gift certificates. They keep you in the conference area for an over extended period to rattle your nerves and they proceed to pressure you until you break. Just remember if you attend one of these sales pitches to get the free goodies you will be going up against sales pros that can intimidate you into making a purchase you had no intention of making.