Owning a timeshare can be a dazzling display of accomplishment for many folks. The idea of exclusive vacations year-round at some of the most jaw-dropping destinations can be mesmerising. However, like any deep sleep, what could start as a cheerful dream can quickly become a dreadful nightmare.
- Sure, at first, you were spending luxurious vacations full of warm sunshine and tall green palm trees without even the slightest worry.
- But as the realities of life start to set in, you begin to realise you’re stuck in a lifetime of maintenance fees and special assessment fees, all for what? An overpriced vacation with minimal availability of reservation dates?
- For many owners, timeshares are just not worth it. Unsustainable costs have led numerous owners to search for legal ways out of their timeshares, all to find out the average timeshare cost can be very expensive.
- Aside from being pricey, getting out of your timeshare can be just as stressful.
- Tons of paperwork and stressful legal battles all contribute to the complexity of getting rid of your timeshare, not to mention all the scam companies who pose as exit companies.
You just can’t catch a break from the scammers when it comes to timeshares. The good news is you’ve come to the right place. Our team has written an in-depth review of the many scams, the average cost to get out of a timeshare, and helpful tips on how to get rid of your timeshare. Our team believes there are many things every timeshare owner should know before working with any exit company. Fill out the form on the right to help you find the right exit company ideal for your timeshare situation.
How Much Is A Timeshare?
For those who want to know how much a timeshare is, it can vary due to an abundance of different resorts and the contracts that exist in the industry. Location is the primary factor for the average cost of a timeshare, and any maintenance or special assessment fees contribute as well. Our team has seen owners typically spend around $20,000-$30,000 for new timeshares, including the buy-in and closing costs.
Reasons To Get Out Of Your Timeshare
There’s no question that timeshares can always seem like a lucrative opportunity. With the ability to spend luxurious vacations at an affordable price, who wouldn’t want to invest in something like that?
But how many of you took the time to sit down and calculate your timeshare expenses throughout your lifetime? Are timeshares a better investment than standard hotel reservations? Not even close. A lifetime of inflated fees in which your family can inherit some cases is not a smart investment.
Average Cost Breakdown
- Here, we’ll break it down for you. An average cost of a timeshare can initially cost you about $20,000.
- In 10 years, that’s about $133/month, not including annual maintenance fees, around $800-$1000 extra. Over a 20-year period of 240 months, you’re looking at about $80,000.00.
- This total still doesn’t include any interest rates or increasing maintenance fees every year.
We hope we did not become the bearer of bad news for some of you, but timeshares are neither profitable nor economical. Overall, signing up for a lifetime of maintenance and special assessment fees for a property you will never own is not a good investment. The main problem with timeshares is their pesky fees, which tend to increase yearly. Also, as the timeshare developer continues to go through new management, new rules or rates are imposed on every owner.
Common Lies Told By Timeshare Sales Representatives
Some of the most common lies told by timeshare sales reps are what got you to sign the paperwork. Numerous timeshare scams are reported to the FTC every year. Each submitted complaint always mentions the same place where the owners were scammed; a “90-minute timeshare sales presentation” lasted hours.
Below are some of the most common lies of the timeshare industry:
- They may tell you your maintenance fee will stay the same throughout your lifetime. FALSE.
- On average, maintenance fees increase by 4% every year.
- A sales rep will convince you this is a smart real estate opportunity.
- Timeshares can lose about 70% – 90% of their original value almost immediately after purchase.
- They’ll throw in a bonus week or a rental program as an incentive so you can sign.
- This is a sales tactic. Unless it’s in writing, don’t fall for it.
- As a last attempt to get your business, they’ll try to offer 1 free exchange offer with another timeshare.
- There’s always a catch. Typically, resorts will make you upgrade your package in exchange for the new timeshare.
- Existing timeshare owners are at risk of a sales scam where reps will convince you they can sell your old timeshare and get you a new one.
- Later, you will discover this is also a lie, and now you’re stuck with 2 timeshares.
- Beware of discounts on airfare, cruises, or even car rentals.
- You will learn this is also a lie, and you just bought a timeshare for the full price.
- Another favourite is how eager they are to tell you all the money you will make from renting it out.
- You’ll realise finding a renter can be exhausting and quite stressful.
The Average Cost to Get Out of A Timeshare
The average cost to get out of a timeshare depends on how you exit it. Typically, owners will select one of the following seven different exit options, according to what’s available to them based on their timeshare situation:
- Rescission
Think of the rescission period as the “cooling off” window where you can still cancel your timeshare for a full refund, no questions asked. You can find your rescission period typically on the front or back of your timeshare contract.
Rescission laws depend on the location where you purchased your timeshare. Make sure to distinguish this from the rescission laws of where you live. These laws grant owners a small window to return their timeshare to the timeshare company for a full refund. If you miss your rescission period even by 1 day, you automatically lose your qualification to rescind.
A rescission law typically lasts 3-14 days, depending on the location. Yes, the time frame is small on purpose, so send in those rescission letters fast if you still qualify. Pay the extra dollars if you have to for overnight mail. The timeshare developers are very strict when submitting documents on time.
- Ask The Timeshare Developer To Take It Back
It doesn’t hurt to try! Sometimes, asking the timeshare developer directly can be your best option. Not every resort offers buy-back programs, but we are seeing more prominent named resorts begin to provide these services. You must be current on all your timeshare payments to qualify for these programs. An average timeshare cost can run from $600 to $2000 to transfer back to the resort.
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Sell Your Timeshare Online
Selling a timeshare is more challenging than it sounds. The main reason is how much timeshares decrease in value right after purchasing.
Not to mention all the advertisements you may have to invest in because your timeshare needs help to sell; only some online platforms are free, too. Craigslist, yes, but eBay charges $50 just to post your timeshare on their site.
Paying expensive up-front fees to sell your timeshare is not only a waste of your money but a waste of your time. Try searching for timeshares on eBay; owners list them for as low as $1. This indicates that owners have given up on waiting for a buyer.
- Renting Out Your Timeshares
It is possible to find interested renters for your timeshare. It’s doubtful you will find interested renters year-round to cover your annual payments.
Besides, some resorts don’t even allow you to rent it out to others. Usually, this reduces the risk of any damages caused by the renters, who are technically not liable to make those payments.
- Hiring A Timeshare Exit Company Who Does Not Use Timeshare Attorneys
This method can save you a couple of hundred dollars and help you cancel faster than involving lawyers. However, you run a higher risk of unsuccessfully cancelling your timeshare.
Timeshare exit companies typically have specific requirements to determine which situations they are qualified to take on. If an exit company does not verify your situation, you can potentially lose thousands by hiring an unqualified exit company to work on your case. The average cost to cancel a timeshare is $3,000-$15,000.
- Hiring A Legitimate Exit Company Who Uses Timeshare Attorneys
Our team believes the most legitimate way to cancel your timeshare is by hiring an experienced timeshare exit company that works closely with attorneys.
Though this may be the best way to cancel your timeshare, it can be the most expensive. And if you owe a mortgage, your fees may increase since these cases are tougher to get out of. With this option, the average cost to get out of a timeshare can run about $4,000-$15,000.
Final Thoughts
The bottom line here is you must be very cautious when it comes to timeshares. If you’re not careful and miss something important in the fine print, the average monthly cost of a timeshare can be thousands! And remember, if you did sign the paperwork, the sooner you cancel, the more money you can save. Sure, you may not get some of the money you put down, but when it comes to exiting your timeshare, what you’ll pay in fees does not compare to a lifetime of increasing maintenance fees.
Conclusion
Overall, we only recommend legitimate exit companies who have no up-front fees and offer an escrow option, so you stay protected from a timeshare exit scam and have a lower average timeshare cost. Contact our team for a free informational consultation or initiate a Live Chat with us to recommend the best exit company ideal for your timeshare situation. We will answer many of your questions, including the average cost of getting out a timeshare. Need more help? Call our direct line at (949)-514-6633 to speak with one of our expert representatives.
