Timeshare 101

Thinking about buying or selling a timeshare? This comprehensive guide covers the essentials of timeshare ownership—from types and benefits to resale considerations—so you can make informed decisions with confidence.

1. What Is a Timeshare?

A timeshare (or vacation ownership) grants you the right to use a property—typically a resort—for a designated time each year. Buyers pay an upfront purchase price and annual maintenance fees to support ongoing resort operations.

Ownership Types:

  • Deeded ownership: You hold a property deed indefinitely, which can be transferred or inherited.
  • Right-to-use lease: You pay for the right to use a property for a fixed term (usually 20 to 99 years).
  • Trust or Points-Based Ownership: You own a set of points rather than a deed. These points are redeemable for usage at a network of affiliated resorts.

2. How It Works

  • Fixed-week: Ownership of the same week each year in a specific unit.
  • Floating/flex week: Book different weeks within a season; reservations may be required 9–24 months in advance.
  • Point-based system: Ownership is allocated in points, which can be redeemed across various resorts and locations.

3. Benefits of Timeshares

  • Resort-style accommodations: Units often include multiple bedrooms, full kitchens, pools, spas, and other upscale amenities.
  • Cost-effective vacationing: Offers partial ownership in high-end resorts without the full property price tag.
  • Vacation exchange options: Many owners leverage exchange networks to travel to different destinations worldwide.

4. Costs & Fees

  • Purchase price: Varies based on resort, location, time of year, unit size, and brand reputation.
  • Maintenance fees: Typically range from $900 to $3,000 annually, covering upkeep, utilities, insurance, taxes, reserves, and capital improvements.
  • Resale savings: Buyers can save up to 80% compared to developer pricing, due to avoided sales and marketing costs.

5. Timeshare Resales & the Resale Market

Why are resale prices significantly lower?

  1. Developer sales often include large marketing fees (up to 50% of the total price).
  2. Some owners list their timeshares at reduced prices to recoup unused value.
  3. A competitive resale inventory helps keep prices affordable.

Advantages of Buying Resale:

  • Access the same high-quality resorts at a significantly lower cost.
  • Avoid high-pressure sales presentations often associated with direct developer purchases.

Advantages of Selling on the Resale Market:

  • Eliminate ongoing maintenance fees.
  • Monetize unused ownership.

6. Due Diligence Tips for Buyers & Sellers

  1. Clarify ownership structure: Understand whether the offering is deeded, leased, fixed, floating, or points-based.
  2. Review annual fees: Confirm the most recent maintenance fees and ensure the resort has adequate reserve funds.
  3. Request an Estoppel Letter: This legal document discloses any outstanding dues, taxes, or special assessments and is required in many states, including Florida.
  4. Verify exchange privileges: Review the associated exchange company and their booking policies.
  5. Avoid aggressive marketing: Be cautious of high-pressure sales tactics. The resale market offers a more transparent, informed buying process.

7. Summary Table

Topic Key Points
What it is Shared vacation ownership, either deeded or lease-based
Purchase options Fixed weeks, floating weeks, or point systems
Costs involved Purchase price + annual maintenance fees ($900–$3,000+)
Resale benefits Substantial savings, reduced pressure, and comparable quality
Due diligence Verify ownership, request Estoppel, confirm fees, and avoid scams

Final Takeaway

A timeshare can offer luxurious, resort-style vacations at an affordable long-term cost—especially when purchased on the resale market, where buyers avoid hefty developer premiums. However, prospective owners must conduct thorough due diligence to ensure the investment aligns with their travel habits and financial expectations.

Interested in buying or selling a timeshare? Contact our licensed specialists for expert, unbiased guidance tailored to your unique needs.