What Is the Average Cost to Get Out of a Timeshare?
When it comes to getting rid of a timeshare, many people tell me their biggest fear is the cost.
Timeshares are often purchased in the hope of discovering a better lifestyle, or most likely, through persuasion.
Yet, though it’s easy to get into one, getting out of a timeshare is a whole new ball game!
Yet, when adding their operational costs, along with money already spent, the idea of exiting fees can be a massive cause for concern.
It’s for this specific reason that many will simply plod on with their timeshare.
This is especially so when faced with sheer confusion about the costs of getting released from these schemes.
Many timeshare companies will drown you with so much complex information and terminology. This is their strategy to do so to make it harder for you to exit.
Also, think about it, if it really was that easy to escape, then everyone would be doing it!
One of the most significant ways timeshare companies do this is by ramping up those leaving those costs. But that’s not to say it can’t be done.
My advice is to become aware of such potential costs beforehand. Therefore, they don’t become a surprise to you later on down the line when you do finally get that ball rolling.
Here I offer some background and guidance to potential costs you can expect to encounter when you opt to exit a timeshare.
What Is the Average Cost to Get Out of a Timeshare?
Reasons Why You May Want to Get Out of Your Timeshare
First, it’s worth remembering that you aren’t alone in wanting to get out of a timeshare.
Thousands of people who find themselves amid these schemes have a moment or several when they question their decisions here.
People look to exiting timeshares for several reasons. These can include:
- Discovering over time that timeshare fees are unsustainable costs. This refers to their annual maintenance fees and special assessment fees.
- Running into financial issues and having no room for maneuver to pay such costs.
- Finding out that you simply don’t want to own a timeshare anymore.
- Discovering that it’s not what you initially believed it would be.
- Hating having your options restricted. With a timeshare, you have an obligation to go to the same place, year in, year out. Thus, it leaves little room for change. And rather than feel like a vacation or break, it begins to feel like a second home with no new scenery.
- Can’t get to the timeshare when it suits you, leaving you looking elsewhere, not using it wisely, or hardly accessing the benefits of it.
- The charges start to rise.
- It’s simply not what you want anymore – we all change our minds when it comes to such products.
- Realizing your timeshare is of poor value for money.
- You’re simply in a different position now then what you were when you first entered into it. Life happens, and circumstances change. Some life events can’t be prepared for, no matter how hard we try, and some of these may hit us hard.
- You felt pressured at the time and now want to change it. Often timeshares are sold using some of the most questionable sales techniques. This means a significant amount of people feel they were duped or easily led into them. Most are sold on a whim or for want of a better lifestyle that often fails to materialize. You then merely find yourself continually paying out each month for the next so-many years of your life.
- You’re keen to place your money into other ventures. More than likely, these will have a better form of returns or make you a profit, unlike your timeshare.
For some people, though, there does not have to be a specific reason to leave a timeshare.
Regardless of why you want to exit, the key here is knowing what you can and can’t do and getting an idea of that average cost before proceeding to exit.
What Exactly Are You Paying for When Exiting a Timeshare?
So many people will ask me why they’re being charged just to leave a timeshare. Often, it angers a lot of people, and I fully get it.
After all, with all the money you’ve paid into such a scheme, the last thing you want to do is spend any more than necessary. This is especially so if you’re planning to get rid of it entirely.
So, it stands to reason why you wouldn’t want to hand over any more of your hard-earned money once you’ve decided you’re done.
Yet, the premise behind a timeshare exiting cost is simple. The timeshare company will need paying for the departure process. This is due to covering administration and maintenance costs, alongside ownership charges for transfers.
A timeshare company is a business, plain and simple. Like all businesses, they have to cover their outgoings while making a profit in the process.
With customers in active timeshares, they make their money by charging annual fees and maintenance costs.
Thus, if you exit without paying, not only would they lose viable ongoing revenue, but ultimately be left with nothing to cushion the blow here!
So, no, you can’t just hand back your timeshare or walk away from it without expecting to incur some sort of resistance and extra costs.
These will, however, have been written into the contract you signed before heading into your timeshare. And, until you pay them off, you are indeed liable for such costs if you wish to leave a timeshare in most cases.
What Are the Average Costs Involved in Getting Out of a Timeshare?
Now that I’ve offered a little more background into the why of these fees, it’s a good time to start mentioning some potential figures here.
As a guide, there is an average figure when it comes to exiting a timeshare. But this is based on the method that you choose to take.
Though I do stress beforehand, the finer details will be based on your particular timeshare. However, many of the figures mentioned tend to be universal.
Giving your deed back to the timeshares resort developer directly
This will usually incur a fee and involve an average of around $500 to $2000 in costs. This is perhaps better for those who don’t want to start looking into the process of selling their timeshare.
However, this option is not always a possibility and is dependent on the timeshare owner in question.
Selling your timeshare using the help and services of a timeshare broker
In looking to expert guidance, you will be employing the services of a timeshare broker. Such advice works based on commission.
Yet, you will not be asked to make a payment upfront here. Instead, you can expect costs of around 50% of the final timeshare’s sales price.
Utilizing the services of a transfer timeshare company
These types of companies should ideally be the most reputable, experienced ones with the best connections. As a result, you may reasonably expect to pay costs here of anything between $500 and $3000.
These are the fees associated with this method. However, though high, they are certainly less than a typical timeshare exit company or a law firm.
Accessing the services of a timeshare exit company
These companies will work directly with lawyers, so understandably fees here will stretch a little bit. Though considered perhaps the more useful of choices, it’s certainly not without its expense.
More so, if you are in the position of owing a mortgage on the timeshare in question, this can increase such fees dramatically.
You could be looking at anything from $4000 to as much as around the $15000 figure for typical costs here.
However, if you opt for such companies that do not access the services of those working with lawyers, you may be able to find some that start from the $200 mark.
Again, with a mortgage owed on the timeshare, you can still expect fees ranging from $200 to $15000 potentially for such efforts.
Selling your timeshare entirely by your own efforts
For most people looking to go this sale alone, the costs to expect here mainly come from advertising.
This means searching for those most commonplace websites. Though some are indeed free, to get the best coverage, you may well be looking at paying costs here of anything from $50 to $125.
But, if you relate time to cost, then this method can prove the most difficult one.
This means that you may well have to weigh up such activities over an expanding timescale with potentially as many as several years in that equation.
Where Will I Find the Information Needed for Exiting My Timeshare?
Getting an average figure will possibly help you make that jump. You may have the money and want to get it done now, or you may well need to save a little more before you can be fully released from your contract.
Whatever your current position, as all timeshares differ, the most important thing you can do to start is to look to your contract.
This is the document where you will find all you need to know about potential fees and charges for exiting the specific timeshare you have taken on.
Another helpful point worth mentioning here is timing. All timeshare cancellations will need an official written notice.
So, you may well want to make a swift decision to do this, as the longer you delay this, the more the potential for increased costs in the meantime.
Yet, that most crucial document here to plan for your next steps and move forward all comes from the timeshare contract.
What Else Do I Need to Know Before Leaving My Timeshare?
It’s good practice to account for the amount of time you spend here. The more time and effort placed on exiting your timeshare, the potential it has to reduce such costs.
I often liken this to examples such as – the more you can do around the home to improve it, the less you’ll have to spend on getting someone else in to do it for you! The principle is the same here when it comes to your timeshare.
Yet, at the same time, this effort will indeed cost you time, so you’ll need to weigh this up against incurred costs.
Thus, it’s a case of finding what you can and can’t afford to part with or what you’re willing to do to leave your timeshare behind.
It’s always worth taking time to read into the finer print and preparing yourself beforehand.
But, if you work by the rule that the sooner you get rid of your timeshare, the better, you’ll save money and, of course, time if you can get to the sale stage a lot quicker.
Final Thoughts on the Costs of Getting Out of a Timeshare
Yes, you may well have to incur a charge to exit your timeshare. Unfortunately, it’s a reality that you can’t just walk away from it without incurring such financial extras.
Yet, play it safe and err on the side of caution and be financially savvy. This means being aware of the terms and conditions and knowing your rights. This also involves getting an idea of the averages you could expect to incur beforehand.
Thus, if you are in a position to do so, you can do it. If not, you can at least have a goal to work toward.
Whatever you decide, I will always recommend you never simply stop paying or refuse to pay such fees.
As tempting though it may seem, timeshare companies can, and more than likely will, hold you to account and hunt you down for what they feel is rightly theirs.
This may well affect your credit rating considerably going forward.
My advice is it’s better to do your homework and read your contract through with a fine-tooth comb.
Then, when you’re sure this is the move for you, get in touch with the experts to plot your next move.
Ultimately, what you do now may well just save you more money in the long-term.
Thus, allowing you to rid yourself of your timeshare, legally and with as minimal hassle as possible.