Sellsius real estate marketing blog

You know the price and payment terms and the yearly costs, but do you have the answers to these critical questions?

1. Will the property be deeded or leased to me? Deeded property in fee simple is best because you can leave it to your heirs and more easily sell it. Leased property has an expiration date, at which time the future of your ownership is unknown—the lease might be renewed—it might not. As time runs on the lease the value decreases substantially & makes selling much more difficult. Some countries prohibit foreigners from owning property, including timeshares, in fee simple. If you must buy a leased timeshare make sure you known the term.

2. Is there a cap on the yearly maintenance or assessment? If there isn’t a cap or limit on the amount, take your promo and run. A cap of 15% may not seem like much but when you apply the Rule of 72, you know your yearly cost will double in just under 5 years (4.8) and quadruple in less than 10. You can expect the cap to be reached every year.

3. Is the week(s) fixed or floating and on what day does the week begin & end? Floating is generally best because it affords more flexibility for use. If fixed, that week is yours every year and cannot be changed unless you exchange the timeshare through one of the exchange companies (RCI & Interval are the largest). Floating weeks generally allow you to choose any week you want. It is also important to know the day your week begins & ends—while many resorts are Sunday to Sunday many others run Monday to Monday. This may be an issue if you have school age children or your week vacation from work runs differently.

4. What other Owner discounts will I receive? Many resorts allow owners discounts on meals eaten at the resort, attractions or activities or discounts on sister resorts. You should also get a discount on the resort rental rates shoud you wish to overstay your week. If no discounts are given, frown, shake your head and insist on some.

5. Can I see the contract before I decide? They should say yes. Then get a copy. The reason for this question is that all of the things you need to know & may not have been told, like what happens if you miss a payment or want to sell, are contained in this document. The contract also states the Rescission Period, if any. It is the time you get to change your mind and cancel the contract (usually 3 days with procedure to follow). You NEED to read the contract if you are serioulsy considering purchase. More importantly, you need to read it BEFORE you make an offer to buy because it allows you time to think without any pressure.

ALWAYS have a lawyer review the contract. If you find it hard to say no, say: “I never buy any property without first consulting my attorney”. They will respond that you have a 3 day rescission to cancel the contract (most give you this). Your immediate come back is: “Yes, I know, but my attorney is on a cruise and can’t be reached for 2 weeks.”

TIP: Consider buying a timeshare on the resale market where you can save 75% or more. Websites like Sellsius° and Redweek will allow owners to list their timeshares for resale or rental. Owners always charge less rent than the resort.