Timeshare Pitfalls

• A timeshare is a type of real estate ownership in which multiple owners share access to a piece of vacation property. Each owner generally gets one or two weeks to use the property every year. While this can be a legitimate way to enjoy a vacation, it can also be problematic. There are several issues that you need to consider, such as maintenance fees, problems trading timeshares and the hard sales techniques used to sell them.

Sales Techniques

• One of the biggest potential problems with the timeshare industry is the selling process that is used to sell them. Most companies offer a free trip or tickets to an attraction to get you to go on a tour of a property. Then they use many high-pressure sales techniques to try to get you to buy a timeshare on the spot. Many people find that they end up paying more than what they should and regret their decision after the fact.

Resale Values

• Even though you are technically buying a piece of real estate, the value of this real estate depreciates drastically over time. The sales team might tell you that you are buying something of value, but if you try to resell it in the future, you will get only a fraction of what you paid. You can list your timeshare on one of the many timeshare resale websites or hire a real estate agent, but you will most likely have to take a large discount to get rid of it.

Maintenance Fees

• When you purchase a timeshare, you will have to pay annual maintenance fees. These fees are necessary to maintain the property after all of the units are sold and the developer moves on. While these fees are technically necessary, they can add up significantly. You may end up paying hundreds of dollars every month just so that you can get one week out of the year at the property. It may be cheaper to just pay for a hotel room without the annual maintenance fee requirements.

Trading Timeshares

• One of the promises of timeshare sellers is that you can trade your week for a week at another timeshare resort. While this sounds attractive, it is not always as easy as it looks. The value of your timeshare may not get you a week at a destination that you like. It can be difficult to trade your week in some cases.