​​How Much Do Timeshares Cost: What You Should Know Before Buying

Written by: Chuck McDowell Updated: Apr 05, 2024 Published: Jan 28, 2021 8 minute read

Timeshares are an increasingly popular vacation property option, with many people purchasing a timeshare as an investment. As with any purchase, it is important to know how much a timeshare will cost before committing to it. This article will answer the ultimate question of "how much do timeshares cost," explore the various factors that influence such costs, and also offer some tips for getting a good deal. 

Types of Timeshare Costs

Regarding the cost of a timeshare, there are two main types of expenses: the one-time purchase cost and the ongoing fees. The one-time purchase cost is the money you will pay upfront to buy your timeshare. This cost can vary greatly depending on the type of timeshare you buy, the property size, and the amenities included. 

The second cost type is the ongoing fees associated with owning a timeshare. These fees include annual maintenance fees, taxes, and special assessments. Maintenance fees are typically used to cover the cost of upkeep, repairs, and other expenses associated with the timeshare. Taxes are assessed by the local government, while the timeshare company imposes special assessments.

Factors That Influence Timeshare Costs

Various factors, including the location, size, amenities, and type of timeshare, determine the cost of a timeshare. For example, a timeshare in a popular resort destination is likely to be more expensive than one in a less sought-after vacation spot. Similarly, a timeshare in a larger building or with more amenities like a pool or gym will cost more than a basic timeshare unit. 

In addition to the location, size, and amenities of the timeshare, the type of ownership also plays an important role in the cost. Timeshares can be purchased on a fixed-week, floating-week, or points system. On a fixed-week timeshare, you will own the same week of the year for the life of the timeshare. On a floating-week timeshare, you can select from a list of available weeks for that year. On the other hand, points timeshares will give you a certain number of points you can use to book various weeks or destinations. 

What are the typical fees associated with purchasing a timeshare? 

The typical fees associated with purchasing a timeshare include a one-time purchase price, annual maintenance fees, and other costs such as closing costs, taxes, and transfer fees.

Are there financing options available for timeshare purchases? 

Yes, some timeshare companies offer financing options to customers. These financing options may include special payment plans, mortgages, and credit cards. 

Are there other costs to consider when buying a timeshare? 

Yes, there are other costs to consider when buying a timeshare. These costs may include legal fees, insurance, and other miscellaneous fees associated with a timeshare's purchase and/or ownership. 

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What is the average price of a timeshare? 

The average price of a timeshare can vary greatly depending on the location, size, and amenities of the timeshare. Generally, prices can range from a few thousand dollars to several hundred thousand dollars. 

As of 2022, timeshares costs an average of $24,140 per interval. In addition to that, the cost of annual maintenance and upkeep is around $1,000. However, it might differ depending on the size of the vacation properties.

Examine your finances to determine how you will pay for the timeshare if you decide to go through with the investment. Using savings instead of loans may be preferable. While timeshare property developers could offer financing, it's often at a much higher interest rate than a bank and for a limited duration. Most banks will only lend money for a timeshare since the properties tend to lose value. A short-term personal loan is another option for funding but be prepared for hefty interest rates.

What is the best way to determine the cost of a timeshare? 

The best way to determine the cost of a timeshare is to contact the timeshare company and ask for their current price list. This will provide a clear understanding of the total cost of the timeshare. 

How does the cost of a timeshare compare to renting a vacation home? 

A timeshare is typically less expensive than renting a vacation home. However, you need to consider the long-term costs associated with a timeshare and compare them to the cost of renting a vacation home.

How Much Is My Timeshare Worth?

The value of a timeshare depends on a number of factors, including the resort location, the type of ownership, the week or weeks of ownership, the season, whether or not the timeshare has points, market value, and availability. In general, timeshares do not appreciate in value and should not be considered a real estate investment. If you are considering listing your timeshare for sale, it is important to do your research and compare prices to get an accurate idea of its value.

Here are some tips on how to determine the value of your timeshare:

  • Research the resale market for timeshares in your area. You can find this information online or by talking to a timeshare resale specialist.
  • Consider the condition of your timeshare. Is it in good condition, or does it need repairs?
  • Think about the amenities that your timeshare offers. Does it have a pool, a gym, or other features that make it desirable?
  • Consider the location of your timeshare. Is it in a popular tourist destination?
  • Decide if you want to sell your timeshare outright or rent it out. Selling your timeshare outright will likely net you more money, but renting it out can provide you with a steady stream of income.

Once you have considered all of these factors, you will be able to get a better idea of how much your timeshare is worth.

What Are Timeshare Maintenance Fees?

When it comes to the timeshare industry, these added costs are everywhere and sometimes hidden. The resort developer will likely send a demand for annual payment along with an invoice for accrued maintenance fees. The price of timeshare maintenance fees is variable and often needs clarification. Typically, timeshare maintenance fees are collected by the resort developer or management company to cover upkeep around the property.

The most crucial aspect to understand as an owner is that there is no way to ensure your maintenance fee will stay the same. You can't ensure it's set in stone and will not rise over the next decade of continually owning your timeshare. This is why many people either need help to afford their annual fees or want to stop paying them.

Many resorts take maintenance fee obligations seriously and consider them on the same level as timeshare mortgage payments. If you don't stay up to date on your maintenance fees, the resort developer or timeshare company could foreclose on your unit. That can significantly hurt your financial status and affect your ability to make future purchases like financing a vehicle or home.

If My Timeshare Is Paid Off, Do I Have to Keep Paying Maintenance Fees?

Unfortunately, you still have to pay your annual maintenance fees regardless of whether your timeshare mortgage is paid off. Timeshare management companies treat maintenance fee dues with the same priority as when they make regular unit payments.

How high they can increase every year tends to drive timeshare owners away from maintenance fees. Some owners feel that the maintenance fees should disappear once they've finished paying off the thousands of dollars they owe on their timeshare. But, resort developers claim they need the money to keep amenities up to date and make repairs around the resort.

If you avoid maintenance fees, your resort ownership could make a collective effort. The resort or collection agency could escalate your case to foreclosure if you refuse to pay your maintenance fees. Either way, your credit could be affected if you avoid paying maintenance fees.

What is the Maintenance Fee for Timeshares?

Depending on the type of timeshare, maintenance fees can vary but typically cover utilities, property taxes, general maintenance, and other services.

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8 Frequently Asked Questions About Timeshares

What Are the Benefits of Owning a Timeshare?

Owning a timeshare can provide buyers with exclusive access to desirable vacation spots, discounted lodging and resort amenities, and the ability to exchange points for different properties.

What Are the Disadvantages of Owning a Timeshare?

Potential downsides of owning a timeshare include high entrance costs, potential legal issues, and the possibility of declining property values.

Are There Different Types of Timeshares?

Yes, there are many different types of timeshares, such as deeded timeshares, right-to-use timeshares, and timeshare points.

How Do I Know if a Timeshare is Right for Me?

Consider your budget, lifestyle, and preferences for vacation trips to determine if a timeshare is the right choice for you. Research the different types of timeshares, read reviews, and speak with a qualified timeshare specialist to find the best option for your needs.

Are There Alternatives to Buying a Timeshare?

Yes! Other vacation options without buying a timeshare include vacation rental homes, exchanges, and vacation clubs. Consider your options to determine how to get the most out of your vacation experience.

What is the Average Life Expectancy of a Timeshare?

Timeshares typically have a life expectancy of 30-40 years, depending on the type of property and the amount of upkeep and maintenance it receives.

Are There Resale Options for Timeshares?

Yes, resale options are available for timeshares, such as through an online marketplace or a licensed broker.

What Are the Most Popular Timeshare Destinations?

Popular timeshare vacation destinations include Hawaii, Florida, California, and the Caribbean Islands.

Tips For Getting a Good Deal

When it comes to getting a good deal on a timeshare, there are a few things you can do to ensure you get the best price. First, shopping around and comparing prices from different timeshare companies is important. Doing so will give you a better idea of the market rate for timeshares in your desired location. It is also important to research the timeshare company you are considering. Make sure they have a good reputation and that they are reliable.

In addition, ensure you understand the terms and conditions before signing a timeshare contract. Finally, it is a good idea to negotiate for the best possible price. Most timeshare companies are willing to negotiate on price, so don’t hesitate to ask for a discount. 

What Are Some Tips for Choosing a Timeshare?

Make sure to research and consider the location, amenities, cost, and exchange options when selecting a timeshare. Additionally, always read the terms and conditions of the timeshare contracts carefully and contact a qualified timeshare specialist for advice.

Watch Out For Fraud

It can be easy to be deceived by a fraudulent timeshare exit team. They have seemingly popped up everywhere. Since the COVID-19 pandemic – timeshare exit scams have started to realize they can trick even more people into paying money to exit their timeshares.

If you're skeptical about a company, make sure none of the below apply to that company. Here are the three red flags that tend to give away timeshare exit scams:

  • Little to no timeshare cancellation industry experience
  • Outsources cases to third parties, such as law firms
  • It doesn't offer any guarantee programs

Yes, it is understood that every company has to start somewhere. Still, a lack of experience or knowledge of the timeshare industry is a dead giveaway the company could be trying to scam you out of more money. It can be a copycat industry, so sometimes it is hard to figure out, so there are other aspects to look for.

Another obvious indication that a company could be trying to cheat you out of your cash is how it operates to rid you of your timeshare. If it immediately turns around and sends your so-called case to a third-party law firm, it must do actual work to try and terminate your timeshare. This should be evident when you inquire about the cancellation process.

Lastly, should your timeshare not be successfully canceled, asking about the pricing or refund policy ahead of time is essential. Suppose a company doesn't offer a 100% money-back guarantee or tries to change the subject of conversation. In that case, it could be a sign that they're just in the business for the money rather than to help alleviate the struggles caused by your timeshare.

How Much Do Timeshares Cost?

Timeshare ownership can be a great way to vacation and provide a good investment return. Knowing how much a timeshare will cost is an important part of the decision-making process. Various factors, including the location, size, amenities, and type of ownership, determine a timeshare's cost. To get the best deal, it is essential to shop around and compare prices from different timeshare companies, research the company you are considering, and negotiate for the best possible price.

Alas, it is important to remember that timeshare value is minimal in the secondary market. Not only can it be challenging to find an interested buyer, but timeshare resorts are often difficult to work with when looking for a way to escape one's timeshare financial obligation. Before buying a timeshare, no matter how much they say you will save, be sure to consider the long-term effects of timeshare ownership. 

If you are a timeshare buyer who was lied to or misled into your purchase, contact Wesley Financial Group, LLC* to find out if their timeshare cancellation services can help you.

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*Wesley Financial Group, LLC, and its affiliates, successors, or assigns are not lawyers or a law firm and do not engage in the practice of law or provide legal advice or legal representation. All information, software, services, and comments provided on this site are for informational and self-help purposes only and not intended to substitute for professional advice, legal or otherwise.

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