In the simplest terms, timeshare allows you to purchase - in the form of fee-title, right to use, or leasehold - a certain amount of time that you will use on vacation. Generally, timeshares are purchased and used in resort-type accommodations. Depending on the type of timeshare, owners may exchange or trade their accommodations, split larger accommodations into smaller accommodations for longer periods of time, and take advantage of a myriad of other benefits offered by either the resort or the exchange company with which the resort is affiliated.

What Do You Do With A Timeshare That You Don´t Use Or Want Anymore?

Timeshare Insights is pleased to announce the expansion of our services to include disposing or otherwise using a timeshare that has outlived its purpose. Please note that we do NOT charge a listing fee, and strongly advise you to NEVER pay a listing fee up front. For only $250.00 you will receive in-depth, useful, practical and above all, unbiased information that you can put into play immediately. For more information, just e-mail us at lisa@timeshareinsights.com.

What Is the Difference Between Timeshare and Vacation Ownership?

Nothing. Many timeshare resorts and operators feel that "timeshare" still holds images in consumers´ minds of slick men in lime green leisure suits with white belts, and so have changed to the so-called "softer" term of vacation ownership. A rose by any other name…

Can I Sell My Timeshare If I Don´t Want It Anymore?

In many cases, yes, you are able to sell it. However, a word of caution is in order here. Do not expect to make money by selling your timeshare. Although many timeshares are in fact real estate, it should not be thought of as "Donald Trump-type real estate." Just because you purchase a timeshare today for $13,000 (the average in the United States) doesn´t mean you can turn around and sell it in five years for $20,000. In fact, it´s very unlikely. Although you can in many cases sell your timeshare, you should compare your possible ROI (return on investment) to any money that you could make by selling your hotel and motel receipts after 10 years, which is none.

Why Does Timeshare Have Such a Negative Reputation?

There are two reasons for this. In the early days of timesharing - particularly in Florida, parts of Pennsylvania, California and Nevada - it was, to put it mildly, a sleazy business. People were lured in by outrageous offers, wined and dined, and then promised lovely resorts "soon to be built." As soon as the money was plopped down, the salesperson and the "developer" absconded with the money, leaving the consumer with a deed to nothing. Happily, this practice has been left in the dust, the responsible parties have been punished or pushed out of the business, and timesharing is, in most cases, a reliable product. HOWEVER…timeshares still operate under the outdated perception that the consumer has to be lured in under the pretext of discounted vacations, free attraction tickets, mediocre continental breakfasts, etc. in order to purchase a timeshare. Unfortunately, the vast majority of the 315,000 timeshare sales made annually in the United States are conducted under those conditions. While the so-called "marketing companies" are raking in untold millions of dollars each year and the developers are making money, the industry has adopted the "if it ain´t broke, don´t fix it" mentality. However, as more and more savvy consumers are finding out the truth about timeshare through non-biased inside information, they are forcing the industry to "fix it."

How Much Should I Pay for a Timeshare?

This is an extremely difficult question to answer. Costs for timeshare vary immensely based on the following criteria: where the timeshare is located, whether the timeshare is deeded in perpetuity or only for a pre-determined number of years, what the rating of the resort is, what amenities the resort possesses, whether the resort is part of a well-known "status" group of resorts such as Marriott, Disney, Four Seasons, etc., what "season" is the week or weeks in question, and most importantly, what can the resort get away with. Your answer to that question should be in comparison to what you would spend on vacation accommodations WITHOUT timeshare. For instance:

1. average number of nights you pay for hotel/motel accommodations per night
   
2. average price you pay in today´s dollars for those accommodations
   
3. how many years you can reasonably expect to continue to vacation barring an unforeseen circumstance such as death
   
4. average rate of hotel/motel inflation per year

• 7 nights per year
  
• $75 dollars per night
  
• 20 years
  
• 10 percent inflation per year
  
• $30,071

With approximately 6,000 timeshare resorts worldwide, this is a particularly intriguing question. It all depends on what you want to do with your timeshare. If you wish to vacation in the same resort every year, then you need to purchase in that location. I would advise you to check out at least a handful of resorts in that location to insure that you like the resort, the amentias, the services, etc., because you will be returning there every year for your vacation. If, however, you wish to travel to different locations for vacation, then you need to purchase in the location that has the most year-round demand worldwide. Currently, that location is Orlando, Florida. With more than 52 million visitors in 2002, Orlando is not the prettiest location in the world, the most scenic or the most relaxing. It does, however, have a four-foot tall mouse, a seven-ton whale, a red-tighted superhero and dozens more visited attractions. This does not mean that if you buy "race week" in Daytona or Christmas week in Vail that it´s a bad thing. It only means that if you wish to exchange your timeshare for other areas, you need to own a "high demand" property. The rule of thumb is "the power of your exchange is dependent solely on what you put into the system, not what you take out." (Thank you, W. Frank Gilmore!)

What Is the Difference Between a Fixed Week, a Floating Week and a Points-Based System?

In two words, "guarantee" and "flexibility." A fixed week will guarantee your accommodations at the resort that you buy for that week and that week only. In most cases, you may exchange your accommodations for another resort, but remember that your "power" may be restricted by which week you own. A Floating Week gives you more flexibility, especially in trading, but no guarantee at any resort including your own. Many resorts have instituted a points based system which allows owners to utilize their ownership for a variety of travel-related products and services such as hotels, airline tickets, car rentals, etc. Be aware, though, that in some cases, points based ownership is NOT ownership at all. The drawback to most points based timeshare is that the point values are not inflation proof. While your week of timeshare may be exchanged for two airline tickets this year, next year that same ownership may only be good for one airline ticket.

Can I and/or Should I Buy Resale?

While you can, in most cases, buy a timeshare resale, either from the original owner or a resale company, it is important to find out why the timeshare is on the resale market. Conservatively speaking, 90 percent of timeshares on the resale market are there because they don´t work, or more to the point, don´t work as they were promised to work. For instance, if you plopped down $5,000 on a week of timeshare in Possum Breath, Alabama, and were "promised" by your salesperson that you would be able to trade it for a week in Hawaii, New Orleans, Gaitlinberg or Australia every year, you are likely to be disappointed and possibly attempt to recoup some of your purchase price by reselling. Now, you could possibly pick up that week of timeshare for say $2,000, which on the surface seems like a steal, but if you wish to go to those same places yourself, you are going to be just as disappointed as the original owner. Case in point: I met a young man at the resort where I was working who claimed to know "everything about timeshare" and further informed me that "My Daddy bought three weeks of timeshare in Galveston, Texas, on the resale market for only $1,000 each" and that "I know that Orlando is more expensive and I won´t buy here." "Great," I said to him, "and could you tell me where your Daddy has been able to exchange with these weeks of timeshare?" "Well, actually, he hasn´t been able to exchange it yet," the young man admitted. "And tell me, does your Daddy like to vacation in Galveston?" I asked. "No," he answered glumly. "Well then, what good does it do your Daddy to own three weeks of cheap timeshare in Galveston, Texas?" I asked politely. Three hours later, Daddy´s son had purchased a $12,000 timeshare from me because he understood timeshare. Only 10 percent of what is out there on the resale market is there for what I consider "legitimate" reasons, such as death, divorce, the need for quick cash, etc. If you are considering purchasing a timeshare on the resale market, it is best to hire someone with a legal or timeshare background to do your work for you and insure that it is everything that it is advertised to be. Cheaper is not always better.

Do I Have to Go to the Same Timeshare Every Year?

No. There are more 6,000 timeshare resorts worldwide. The vast majority of these timeshares belongs to either Resort Condominiums International (RCI) or Interval International (II). For a small fee (currently $121-$179), you may trade or exchange your timeshare for comparable accommodations throughout the world. It is important to understand that timeshare exchange companies operate under certain "rules." Just because you own a timeshare, you are not guaranteed the option of trading when and where you want to go.

Should I Buy a Timeshare?

If the answer to each of the following questions is "yes," then you should buy a timeshare:

1. Do you feel that you deserve more value from your vacation dollar?
   
2. Do you feel that limiting vacation inflation is a good thing?
   
3. Do you feel that overall, ownership is "better" for you than renting?
   
4. Would you like the opportunity to vacation in better accommodations?
   
5. Would you like the opportunity to achieve your "dream" vacations without hindering the other things in your life?
   
6. Do you want to have something to show for your vacation expenses?
   
7. Do you want to join the more than 6.5 million people who are doing all of that?