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How to Buy a Timeshare Cheap
So, you want to buy a timeshare and pay as little as possible. Rule number one – Don’t buy from a developer unless it is a genuine closeout. The first timeshare I bought was from a developer that had sold out his resort and had a few weeks remaining that he wished to “blow out” so he could start a new project elsewhere. I paid $1900 for a week that in the previous year was being sold for $16,000 by the same developer! Don’t be fooled by sales tactics on timeshare tours where they start out very high on the price and then magically find ways to keep lowering the price until you feel that it’s a deal you can’t refuse. Up to 60% of the cost of a timeshare is marketing costs. It is not uncommon for a developer to hire a marketing company that takes 50% of the sale proceeds. Sadly, in spite of promises made by salespeople, most timeshares resell for 20-50% of their original purchase price. Do your homework. Are you seeking to own a timeshare simply for exchange purposes or do you intend to use the resort? It really does make a difference. If you are seeking a timeshare for exchange it is important to understand the rules of the exchange companies (the two biggest players in the industry are RCI and Interval International. Each has similar rules concerning exchanges. As a general rule, last minute exchanges are “first come, first serve”. It makes little difference whether you are trading an expensive high season week or an inexpensive off season week. So, that week you buy on ebay for $100 may do the job as well a $10000 high season week if you have the flexibility to travel on short notice and choose from a variety of resorts and areas available. On the other hand, if you want to exchange into top notch resorts in high season it becomes more important to own something that is in high demand. Exchange companies operate under the principle of “comparable exchange” meaning they try to match the vacation experience provided by what you own to where you exchange to. So, if you owned a 2 bedroom, 2 bath condo at a 5 star resort in Vail Colorado in the peak of season a comparable exchange would be to a 2 bedroom, 2 bath, 5 star in Cancun, Mexico in February. In other words, you have to tailor what you purchase to the vacation experience you are seeking. Read everything you can at authority sites such as www.tug2.org and www.redweek.com. Where to buy? Two great places to start are www.ebay.com and www.bid4assets.com. It is not unusual to find timeshares for under $100. The important thing is to know what you are buying. Contact the resort and inquire about the unit and week you are interested in. As the new owner you are liable for any back taxes, unpaid maintenance fees and assessments. Do a search on the internet for “timeshare user groups” and search for the resort you are interested in to see if there are any problems you should be aware of. Another source of inexpensive weeks is from homeowner associations at resorts. Contact resorts you are interested in and inquire about homeowner association weeks for sale. These are weeks that are owned by the homeowners usually because they were signed over to them in exchange for releasing the owner from back maintenance fees and taxes owed. Usually the association only wants to recoup the back fees owed and is not terribly interested in making a profit. See if the resort has a website for owners. There will usually be weeks listed for sale there. If there is an owner’s forum it will provide you with a window on how well the property is managed and experiences that owners want to share.
This article was posted on August 23, 2006
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