Want to get out of a timeshare? You are not alone.
The draw of a timeshare is real. I know — my dad bought a timeshare with two weeks in a resort town. One in the winter and one in the summer. I’ve enjoyed being able to use it, but I’m not the one paying for it.
Having a timeshare can be a bad financial move. If you want to get rid of your timeshare you do have some options.
How to Get Out of a Timeshare
Here is what you need to do to get rid of your timeshare.
1. Check Your Timeshare Contract
Many timeshare contracts contain a retraction or rescission period. This can be called a “cooling off” period. It’s a period of time after you sign the agreement in which you can cancel. No questions asked.
The “cooling off” time period is typically just a few days long. In some states, certain requirements must be met before the time period begins.
This can also be referred to as a deed-back clause, where you are allowed to give the timeshare back to a resort in a specified period of time.
Check with your state laws if your contract is unclear. But check the rescission terms on the contract first. If your purchase is recent, you may be covered. You may be able to annul the contract.
2. See if the Company Will Buy it Back
In some cases, the timeshare company will buy it back. This is rare, but it does happen. Note that they likely won’t give you the full price in a buyback.
Yes, you could lose money. Your timeshare contract should talk about buybacks. Some companies buy them back, others don’t. If yours does, contact them to see what their buyback terms are.
3. See if the Company Will Take it Back for Free
Some companies won’t buy timeshares back. However, they might take them for free. Yes, this is a colossal loss of cash.
However, remember that the goal is to stop paying fees. Annual fees on timeshares can add up fast. Some cost several hundred dollars a year to maintain.
You may lose thousands by giving your timeshare back. That’s hard to swallow. But don’t lose thousands more by keeping it if you don’t want it.
4. Sell Your Timeshare
In some cases, you can sell your unwanted timeshare to someone else using a specialized realtor. As with the buyback, you’ll likely sell it for less than you paid.
You can also use a site designated for timeshare sales to advertise your listing. Redweek.com lets people list timeshares for sale in their online resale market.
Note that companies like these charge fees to sell your timeshare. Read the fine print. Be aware of all fees before listing on a sales site.
EBay is another site where you can list your timeshare, but know there will be fees associated if you go this route as well.
You could advertise on a free site, too. Craigslist and similar sites will let you sell a timeshare for free.
5. Hire a Timeshare Exit Company
Similarly, you could hire one of the top timeshare exit companies to help you out. They’ve been helping people exit timeshares for over a decade.
If you feel overwhelmed with all of the details of selling a timeshare, this may be a great option for you. Here are a few legit timeshare exit companies.
The Newton Group is one of the longest-standing timeshare exit companies. They have an A+ BBB rating and a 4.7 out of 5-star rating with Trustpilot. If you need a lawyer, they will hire one on your behalf.
Vacation Ownership Consultants
Vacation Ownership Consultants have a long company standing. They offer a one-time, flat fee for their attorney-based process. Their high ratings include an A+ with the BBB and a 4.0 out of 5 star rating with Trustpilot.
Timeshare Specialists offers a free initial consult. Their website is filled with great information, including a free timeshare cost calculator. Ratings include an A+ with the BBB and a 4.9 out of 5 stars with Trustpilot.
Additionally, check with the American Resort Development Association (ARDA) or Better Business Bureau for possible timeshare exit scams.
6. Give Your Timeshare Away
The truth is, you might have trouble selling your timeshare. If you’ve tried and failed, consider giving it away. At least you can get out of the annual fees then.
TUGBBS Bargain Bin is a timeshare forum. They’re set up to help people get rid of timeshares, and to help others who want to get them for free. You won’t get upfront cash. But you will get out of annual fees.
This might seem like a bad deal to you. After all, you paid thousands of dollars to buy your timeshare. But consider this: You’ll pay thousands more in annual fees if you don’t get rid of it.
If you can’t sell it for cash, you may just want to give it away. At least then it’s off your plate.
Why Timeshares Can Be a Bad Idea
You may be wondering what’s so bad about timeshares. After all, they cost much less than owning a vacation home. And much less than paying for a full vacation every year.
While that may be true, there are several downsides to timeshares. Consider these negatives before you buy one.
You’re Stuck With One Company
Some timeshares make you keep your week at your resort. You go to the same place year after year. That can get boring.
Other timeshare companies have several resorts. They allow you to trade your week for another one within timeshare user groups.
Or, you can stay somewhere else if you pay an extra fee. While this sounds good, you’re still locked into the one company. You can’t vacation with no boundaries.
If you’re okay with that, great. But there’s a reason so many timeshares sit on sales sites with no takers.
You May Not Use It
I know several people who bought timeshares but don’t use them. They mean to, but things get in the way. Maybe it’s their schedule. Or that they no longer love the destination.
Timeshare sales pitches thrive on spur-of-the-moment impulses. The new and shiny idea sounds wonderful. There are bells and whistles and sparkly things.
Then reality sets in and it’s not as great as it once seemed. Or you just get too busy. Then you’re out the money and the vacation.
They Cost a LOT
Another reason timeshares can be a bad idea is because of the upfront cost. Many units cost $15,000 or more at the outset.
But that’s not all! You also have annual maintenance fees, which average $1,000 per year. This annual fee will likely go up every year and you have no control over it.
When you add on annual fees, timeshares get expensive. Wouldn’t it be better to spend your money how and where you choose?
They Don’t Appreciate in Value
Unlike most real estate, timeshares don’t appreciate. The value of the building is irrelevant to timeshare owners. You’re buying the time, not a piece of the building.
It’s kind of like buying a new car. The resale value of a timeshare decreases as soon as you leave the lot. Or, in this case, sign the contract. Plus, the maintenance fee will go up.
Therefore, your investment won’t increase in value. This is different than if you bought a vacation home outright.
Those buying timeshares from sellers get a much better deal. Resale prices on timeshares are significantly lower than the original sale prices.
Timeshares Don’t Generate Income
With investment real estate, you earn income. If you rent out a home, you collect rent.
That rule doesn’t hold true with timeshares. They cost you money. But they won’t earn you income.
They’re Not a Liquid Asset
As I’ve mentioned, timeshares aren’t an asset. But if they were, they wouldn’t be liquid. A liquid asset can be quickly sold to get cash.
On the contrary, timeshares are tough to unload. People have trouble giving them away.
Visit the website mentioned above (RedWeek.com). You’ll see dozens of timeshares selling for $0 or $1 just sitting there without buyers.
There’s a reason no one’s buying them. They just don’t make sense financially.
That’s not to say that a small percentage of buyers aren’t happy with them. They can be good for some people.
However, many people find they’re a waste of money. Think carefully before you invest in one. And consider these statistics.
Some Statistics on Timeshares
Despite their oft-bad rap, timeshares are still selling in the U.S.
Some facts regarding timeshare sales:
- There were $10.5 billion in sales
- The average price was $22,942
- Annual maintenance fees averaged roughly $1,112
As you can see, timeshare sales are booming. However, that doesn’t necessarily mean you’ll want to keep one if you buy it.
People get lured in by the sales pitch. It’s like the honeymoon period of a relationship. Everything seems wonderful at first. Then real life sets in, and the romance is gone.
You realize how much money you spent on the deal. And you think about other ways you could have used it.
Now you’re thinking about getting out of the deal. Or maybe you’ve had your timeshare for a long time. You realize it’s time to move on.
Why You Might Want to Get Out of Your Timeshare
Becoming a timeshare owner may have seemed like a good idea at the time. However, things can change.
Here are some reasons you may want to get rid of your timeshare.
You Bought it on a Whim
You were drawn in by the sunny beaches and smiling faces by the pool. You’ve signed the contract and handed over big cash.
Now you want out. There’s no shame in that. This is why contracts often have recission periods. Refer to the first section of this blog for a refresher on that.
You Don’t Use It
People who buy timeshares sometimes find they don’t use them. Maybe they’re just too busy. Or maybe they bought one in say, Florida, but just can’t afford to get there each year.
Maybe things have changed in your family. Or your schedule. The kids are grown and off at college. Or married and living out of state. Whatever the reason, you may not use your timeshare anymore.
You Can’t Afford It
We live in a time of financial instability. The economy is improving, but it’s volatile, too. Maybe you just can’t afford your timeshare anymore.
Check your contract because many are subject to maintenance fee increases each year. Or the cost to travel there and back is too much. Maybe you’ve had financial setbacks.
There’s no shame in deciding the cost of your timeshare isn’t worth it. Or isn’t doable. It’s best to get out of it and move on.
You May Have Health Concerns
Have you had your timeshare for several years? Aging and health concerns may prevent you from using it.
It was easy when you were younger. Now you prefer not to travel. Or health concerns prevent you from doing so.
The point is that your days of owning a timeshare may be done. The reason doesn’t matter so much. The fact that you want out does.
Timeshares are a depreciating asset. There are always more sellers than buyers. And they don’t appreciate in value. Maybe it is time for a timeshare exit strategy.
The sooner you get rid of it, the more money you’ll save. You may not get your money back on the sale price. But you’ll get out of the annual fees.