Wednesday, October 14, 2009

8 Tips to Buying a Timeshare Resale

Are you thinking about buying a timeshare resale but not sure how to do it? As you take a look at RedWeek.com for your next timeshare purchase, those who are not familiar with the timeshare resale market might wonder what some of the key points are they should consider when making a purchase. We’ve broken the process down into 8 Tips to help walk you through the process and help ensure you are buying what you really wanted.

Each step will explain the key points you need to know when buying a resale and also denote the terminology used on RedWeek.com to describe the resale listings:
  1. Resort
    The first thing you want to do when considering buying a timeshare resale is to search for the resort you want. Perhaps you’ve already stayed at the resort, or, you have a resort in mind. It’s best to visit and stay at the resort before deciding to buy in the aftermarket. You can rent a timeshare from an owner at RedWeek.com first.

    Click the tab "Timeshares for Rent or Sale" to browse by area (ie. Hawaii), or try the "Find a Timeshare" search box on the right side of our Web site to type in the exact resort name. Make sure that if the resort you want has multiple phases that you identify the exact phase or section you want to buy when reading the details of the listing.

  2. Week (Season)
    When you can use your week will depend on if you buy a float or fixed week.

    Fixed Week: With a fixed week, you are buying exactly that week for every year. For example: If you see “39 (High)” in the sale listing, it is telling you that you are buying Week #39 in the timeshare calendar during the high season for that resort. To know how timeshare weeks are numerically assigned, see the Timeshare Weeks Calendar. It shows that Week #39 begins September 25, 26 or 27 (depending on if the resort offers Friday, Saturday or a Sunday check-in day).

    Floating: If you purchase a floating week, you can take your vacation in your timeshare any time during the specific “season” noted (high, med or low). For example: “Floating (high)” tells you the week is in the high season and may be used at any point during that window of time (most likely a span of a few months).

    Season: Every resort has a different season depending on their location (beach, mountains, etc…) High, Low, or Med refers to the season and is specific to that resort alone. High season is always the most popular time (ie. Winter time for ski resorts, summer time for beaches, etc…) To confirm the season your week falls into, it is best to contact the resort.

  3. Unit View
    Many resorts do not offer a specific view, but, if it does, you will see it outlined in the “unit view” section of the listing. Here’s a list of some of the descriptions you’ll find on RedWeek.com: Oceanfront, Ocean view, Island view, Golf view, Mountain view, Golf front, Pool, Varies.

  4. Usage (Use)
    This will tell you if you are purchasing a unit for use every year, Annual, or on Even years, or Odd years. You may also see the term EOY which means "Every Other Year" (or Biennial).

  5. Ownership (Type)
    Type helps define your rights in owning the unit: Deeded, Right to Use (RTU) or Club. All countries are different regarding laws of property ownership. You should also find out from the owner about the rights. Some timeshares only allow usage 40 years from the first date of occupancy, whereas others can be passed down from generation to generation.

  6. Size of the Unit (Bd/Ba)
    The number of bedrooms and bathrooms in the unit.

  7. Occupancy (Occ)
    The occupancy number regarding how many people can comfortably sleep in the unit, based on beds and pull out sofas.

  8. Price
    Prices vary greatly and it's all based on what you are buying. Click through to "view" the listing you have selected and you'll see what is included.

    Base price: There is typically a base purchase price to secure the unit (although some owners are selling for $0).

    Maintenance fees: Every year you use the unit (annually or every other year) you are required to pay the resort a Maintenance Fee. As you view the listing on RedWeek.com you'll see the maintenance fee listed in the details. (This is the equivalent of a condominium fee that is due every year for maintenance and repairs, like painting and unit refurbishment of soft goods.)

    Special assessment fees: Capital Items are billed separately to owners above and beyond the maintenance fees, for example, if the resort undergoes a major remodel. This is not common, but, a cost you should be aware of as you consider a timeshare purchase.
Found more confusing terms you need defined? Just check our Timeshare Glossary. Once you have decided on the property you want to buy, we strongly recommend that you use a secure third-party handling service to conduct the timeshare resale transaction. See Timeshare Resale Escrow Services for details. If you still need assistance, please Contact Us, and congratulations on your decision to purchase a timeshare.

2 comments:

  1. Anonymous11:40 AM

    Thank you so much for this great article,very informative. I've printed it off to give to my sister-in-law.

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  2. 2 more tips: (1) eBay; and (2) escrow. I've picked up 2 timeshares on eBay for $1. Both went through a formal escrow and I now own a floating week at Kauai and a fixed week in July at a resort that is 1 mile from the entrace to Epcot.

    I had to pay the escrow fees and cover the annual dues, but they were still excellent deals. In this economy, people are practically giving them away to avoid paying the annual dues.

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