Excerpted from ARDA’s Understanding
Vacation Ownership
A vacation ownership purchase is a significant commitment, not only
financially, but also in terms of future vacations. You should be sure
that the resort or club in which you purchase an interest will provide
many pleasant vacations for years to come and can evolve with your
lifestyle. Also, at times, changes in owner lifestyles and personal
circumstances result in a desire to sell a timeshare interval.
Here are some important tips to
consider when making a purchase:
-
Buy because you plan to use and because you plan to use the
vacation ownership product in the future. Consider your
vacation ownership purchase as an investment in future vacations, not in
terms of an investment for financial profit.
-
Choose a vacation that fits your lifestyle. Think
carefully about what you value most in a vacation and travel experience,
then explore the wide variety of vacation ownership products and options
available and choose those which best suit your needs.
-
Visit a timeshare resort on your next vacation.
Take a tour of a local resort. While there, talk to existing owners
about their ownership experience at the resort. Many resorts offer
mini-vacations that provide opportunities to experience the resort
first-hand.
-
Read all documents carefully and understand what
type of product you are being offered. Is it a fee simple or
right-to-use plan, fixed or floating time, or a vacation club, etc.?
-
Ask if the resort is an ARDA member. Members of
ARDA agree to follow the ARDA Code of Standards & Ethics and are
expected to adhere to the highest standards of quality and service.
-
Look for signs of good management, such as
well-maintained facilities and resort amenities, good housekeeping, and
friendly service.
-
Verify the resort’s affiliation with an exchange
company and learn about the resort’s internal exchange
policies and member benefits.
-
If you are purchasing primarily to take advantage of the exchange
benefit, buy the most desirable unit in the most popular
season, or the largest points package you can afford, as this
will provide greater exchange flexibility.
ARDA offers these tips to consumers
wishing to sell their timeshare:
-
Although timeshare is, in fact, a legal purchase of real estate, it
should be considered the purchase of a vacation lifestyle, rather than a
traditional real estate investment. Do not necessarily expect to receive
the same amount that you originally paid for your timeshare.
Many factors influence the resale price including season,
location, unit size, age and availability of new product.
-
Check with your developer or the resort management
company to see if either offer a resale program or are
affiliated with a broker to handle resales. If so, ask for the
statistics on past resales.
-
If you have purchased in a resort area, there may be local
brokers who handle resales (check the real estate or classified
section). If you find one, expect commissions to be in the 10 to 25
percent range. You may also find a broker in your hometown.
-
Deal only with licensed real estate brokers. When
in doubt of a company’s reputation, ask for references. Also ask
to talk to past sellers.
-
Run ads in the real estate or travel sections of
newspapers in the resort area or your hometown.
-
Consider targeting the ad sections of national
publications that have an emphasis on travel/leisure. Check at
your library to see which have a classified section for travel/real
estate opportunities.
-
Never give up the right to use the timeshare accommodations
for any purpose while selling.
-
If you sell your timeshare, be sure to notify both your
resort and your exchange company in writing.
See A Consumer Guide to Vacation Ownership
for a comprehensive tour of the world of vacation ownership
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