5 Questions To Ask Before Buying A Timeshare

03.04.2024 - 14:35 / forbes.com / Can I (I)

The are many stereotypes associated with timeshares. However, it’s not always easy separating fact from fiction, especially for an industry that’s up against stiff competition, including fractional ownership. Considering the escalating costs of travel and the evolving preferences of modern travelers, it might be opportune to re-examine the timeshare industry and its relevance in today's travel landscape.

The origin of timeshares can be traced back to the early 1960s when a group of ski resort developers in the French Alps began renting out space in their hotels to vacationers. This model quickly caught on in the United States.

The main difference between timeshare ownership and fractional ownership is the latter grants you partial ownership of a property's title, while timeshare ownership allows you to own blocks of time to use a property. In essence, fractional ownership means you co-own the home with several other buyers, while timeshares allow you to own a period of time to spend at the property, sharing vacation rights with others.

Although not the preference for everyone, timeshares remain a very popular vacation option for many people. According to a survey by the American Resort Development Association (ARDA), which advocates for the industry while working to protect and educate consumers to get the most out of their timeshares, over 2.3 million households in the United States own a timeshare, and many of these owners are repeat customers.

Jason Gamel, President and CEO of ARDA, offers five questions to ask before buying a timeshare:

How Do I Make Certain I’m Buying the Right Timeshare for Me? Start by sizing up your goals as a vacationer, especially where and with whom you envision traveling. Next, consider the developers behind the timeshare: allegiance to a particular hospitality brand can pay benefits from points on loyalty programs to peace of mind. Finally, consider the access available from the brand you buy into, whether it’s a standalone resort or a major network with properties in multiple destinations.

Onsite visits are great for getting a feel for the quality, amenities and services a vacation ownership brand offers, especially through short-stay “mini-vacation” programming offered by many developers. Talking with other owners about their experiences and the quality of management is also beneficial. Finally, read all documents carefully to understand the vacation product you’re purchasing, request explanations of mystifying details and inquire if the resort is a part of ARDA, whose members adhere to a strict Code of Ethics.

How Much Can I Expect to Spend on a Timeshare?

The cost of a timeshare varies from unit to unit, resort to resort, by the time of year and even owner to