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Timeshare Fees: A Quick Guide

Timeshare Fees A Quick Guide

November 28, 2018 – by Primo Management Group

Timeshare Fees A Quick Guide

Don’t let timeshare fees take you by surprise. Check out our guide BEFORE you buy.

One thing is for certain: timeshare companies LOVE fees. If you’ve been an owner for any length of time, you’ve encountered timeshare fees. You probably expected some of them. After all, nothing is free, right? But chances are, you’ve also run into some unexpected charges. Surprises are fun, but financial surprises? Not so much. In this guide, we’ll look at common timeshare fees that apply to most buyers. In part two, we’ll check out fees for special circumstances.

Initial Cost

Your first timeshare fee is, of course, the cost of your timeshare. Luckily, you were expecting this one. According to the ARDA, the average timeshare cost $22,180 in 2017. Of course, you can spend a lot more or a lot less. In general, you’ll spend the most when you buy directly from the developer and don’t negotiate your price. But with some negotiating skills, you could reduce what you’re paying by quite a bit. Of course, timeshare sales reps are notoriously high-pressure and not everyone has what it takes to say no or talk them down. Or maybe you bought your timeshare on the resale market for much less. Whatever you paid, we hope it was in your budget because there are more fees to come!

Interest Fees

If you finance your timeshare, your next fees are interest fees on your loan, similar to interest on a real estate loan. However, a timeshare loan is very different from a mortgage, which are secured loans and usually have low-interest fees. But timeshare mortgages aren’t a thing. Instead, you must finance your timeshare another way. If you choose developer financing, expect to pay 12-18% interest. Personal loans often have better interest rates but will require you to have better credit than a developer loan. Credit cards will have the highest interest rates, so if you don’t plan to pay off your timeshare ASAP, don’t charge it. Of course, any kind of financing will affect your credit, which could have bigger ramifications down the road.

Transfer & Recording Fees

When you sign your contract, the company may charge you these fees for transferring the deed to you and other recording costs, not unlike what a title company would charge in a traditional real estate transaction. Although these are typically small, one-time fees, it pays to be aware in advance.

Maintenance Fees

Maintenance fees are the most common and can be the most expensive of all timeshare fees over time. Each timeshare owner pays an annual maintenance fee that covers basic maintenance and upkeep for the resort. The cost varies greatly from resort to resort, but in 2017, maintenance fees averaged almost $1000. In a deeded timeshare, costs vary by unit. In a points-based system or vacation club, fees vary by number of points. And maintenance fees tend to rise every year. A few dollars here or there might seem small, but over time they add up. Before you sign your contract. request a maintenance fee history to help you predict future fees. Nothing is certain, of course, but if you see a pattern of steep increases, you may want to reconsider your purchase.

Special Assessment Fees

Special assessment fees are far less common than maintenance fees but are no less serious. These are levied by the HOA to cover the costs of significant upgrades or repairs to the resort itself. Although each special assessment is typically a one-time payment, they are unpredictable and costs can be quite high. Since special assessments often happen when the resort does a big renovation and (hopefully) improves the facilities, you may be able to get a sense of when the next one will occur based on the previous one. You should be able to obtain a special assessment history from your HOA. Special assessments for repairs are much harder to predict. Who knows when a water main will burst or when severe weather will sweep through? If you’re considering a timeshare in a hurricane-prone area, for example, consider how you would handle major storm damage.

Before you buy, think carefully about whether you want a lifetime of timeshare fees. If you already own your timeshare and can no longer afford all the fees, it might be time to opt out and consider timeshare cancellation. We can help. The consultation is free. If you decide to work with us, we do charge a fee, but it’s a one-time fee, we promise. And it’s backed by our 100% money-back guarantee. Contact us today to get started.

(Image Source: Pixabay)

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Frequently Asked Questions ?

How does PMG get me out of my timeshare contract?

PMG is not a resale, transfer, or donation company. We are consumer advocates—we help to negotiate the release of your timeshare contract obligation. We do not buy, sell, or rent your timeshare. Simply put, we help you to get out of your timeshare contract forever.

How long does the process usually take?

Usually less than 12 months, but it all depends on your situation. If your timeshare is free and clear with no mortgage, then the process may only take 3-9 months.

Speak to your advisor about the time, and what delays the resorts have put into place to prevent timeshare owners from departing their ownership. If you have a mortgage or past due maintenance fee, the process takes more time.

How much is my timeshare worth?

This is probably going to hurt, but whether you paid $5,000 or $50,000 for your timeshare, the IRS values all timeshares as worthless investments. In addition, that timeshare would have negative value due to the annual maintenance fee bill which compounds year after year. That is until PMG helps you cancel your timeshare.

Can I use your service if I still have a balance owed on my mortgage?

Yes. Whether you bought your timeshare 20 days ago or 20 years ago, PMG has a solution for you and is here to help.

Will my name be off the timeshare?

Yes! Permanently! GUARANTEED!

In addition to getting me out of my timeshare, can you recover the money I’ve already spent on mortgage payments and maintenance fees?

While we are able to recover money in rare cases, beware of any timeshare cancellation company that entices you with the promise of fund recovery. The truth is, timeshares are loath to give back the money they’ve already taken.

Are your consumer advocates really “consumer advocates”, or is that just a fancy word for salesperson?

Because most of our clients have had their trust betrayed by timeshare salespeople, we understand how some consumers can become a bit jaded. When you call us for a consultation, that’s exactly what you get, a consultation. At PMG, our job is not to sell you; our job is to help you get out of your timeshare. Which is why we have numerous 5-star reviews and an “A” (excellent) rating from the BCA.

Why should I choose PMG to get me out of my timeshare?

We pride ourselves on providing our customers with the best customer service in the industry. When you contact our company, you speak to a live person, not an automated system or voicemail. We go above and beyond for our customers by helping you to protect your credit and even repair your credit if needed. We offer a 100% money back guarantee, and we can provide documented proof of our success in helping customers just like you.

What happens after I sign up with you? Will I be apprised of your progress?

At PMG, we pride ourselves on our hands-on, boutique-style customer service, so every new client is assigned a case manager whose job is to keep you in the loop throughout the entire cancellation process. Your case manager is always just a phone call away.

How much is your fee?

Not all timeshare experiences are created equal. Some are more complicated than others, and every situation is different. That’s why our trained timeshare elimination consultants will ask you a series of questions designed to determine exactly what needs to be done to terminate your timeshare, how long it will take, and how they can best advocate for you. We will always seek the most cost-effective route for you.

What if I still have more questions?

Canceling a timeshare contract is not a cookie cutter process. With each situation being unique, once you complete the form below an experienced consumer advocate will call you today to discuss your options.