Informed Timeshare Decisions,
What Is the Average Cost to Get Out of a Timeshare?
For many people, owning a timeshare is a dream come true, providing an opportunity to enjoy a luxury vacation every year. In some instances, these magical vacations occur at first, delivering memories you and your family will cherish for a lifetime. However, over time you may come to find that you’re no longer getting value out of your timeshare.
Whether it’s due to the rapidly increasing annual maintenance fees, changes to your vacation preferences or a variety of other factors, there are many reasons why your timeshare can become a burden. Unfortunately, most timeshare contracts contain a perpetuity clause which requires you to pay all associated fees for the rest of your life. While this clause creates challenges when trying to get out of a timeshare, you still have options.
The Costs of Keeping Your Timeshare Usually Exceed the Cost of Canceling It
The reality that is rarely disclosed during a timeshare sales pitch is that these properties are a financial burden:
- Monthly timeshare mortgages typically range from 14-18% and the average mortgage term is 10 years. This means the actual purchase cost of the property is significantly higher than the figure presented to you during the sales presentation.
- The average annual timeshare maintenance fee is approximately $1,000, and these fees increase roughly 4% each year. As a result, your maintenance fees will rise almost 50% over the next 10 years.
- Timeshare resorts often levy additional fees, called special assessments, to cover the costs of damage caused by natural disasters.
- In situations where you’re allowed to exchange your scheduled week for a different time of year or swap your unit for one in a different location, you’ll typically be charged a fee for this transaction.
Over time, these costs can make your timeshare vacation prohibitively expensive. It’s always important to weigh these ongoing costs, which will continue for the rest of your life, with the expenses associated with canceling your timeshare. While the cost of permanently and legally getting out of your timeshare often isn’t cheap, it pales in comparison to the amount of money you’ll pay if choose to remain saddled with the continuously rising expenses associated with timeshare ownership.
The Cost of Getting Out of Your Timeshare Depends on the Solution
Factors Impacting the Cost of Getting Out of Your Timeshare
Unfortunately, it’s impossible to provide you with an average cost to get rid of your timeshare. A more accurate answer to the question is “it depends.” While this may seem like a frustrating or vague response, there are several reasons for this variability.
There are a few different ways you can potentially get rid of a timeshare. Each one varies in the level of effort, price and effectiveness. In addition, the potential solutions available to you may vary based on the specifics of your unique situation. As a result, one primary factor involved in determining the cost of getting out of your timeshare is the solution you choose.
In addition, every timeshare contract is unique and as a result, it’s impossible to provide an accurate cost estimate without a careful evaluation of your contract. Therefore, your unique situation, including its complexity, will need to be assessed in order to devise the right exit strategy and determine the associated cost.
First, let’s look at the relative costs of the different solutions for getting rid of a timeshare:
- Recission – If you experience immediate buyer’s remorse, you may be able to rescind your timeshare contract. Most timeshare contracts provide a very short period of time – typically 3-14 days – where you can return the property for a full refund. This is the easiest approach and typically won’t cost you anything. However, the tight time window means that this option isn’t available to most timeshare owners.
- Deed back directly to the timeshare developer – Some, but not all, timeshare developers will offer a deed back option where they will simply take the deed of the property off your hands. There is a fee associated with this, and your fee will vary based on the terms offered by your specific timeshare developer. However, in order to take advantage of this option, you must be current on all your fees and typically your timeshare mortgage must be completely paid off. Due to the specific criteria that must be met with this option, it may not be available to you.
- Selling the timeshare on your own – If you choose to try and sell your timeshare on your own, it’s important to understand that you may find the process to be very challenging. Timeshares have virtually no resale value, which means you’ll be lucky to receive pennies on the dollar and in many situations, you may not be able to find a buyer. While the costs associated with advertising and selling your property are relatively low, this often turns into an expensive solution if you still owe a significant amount on your timeshare mortgage or it takes a long time to sell your property (you’ll need to continue paying all associated fees until you’ve sold the property).
- Selling the timeshare through a broker – Always beware of brokers offering to sell your timeshare for you. In most instances, this is a scam. Due to the limited market and poor resale value associated with used timeshares, these brokers often won’t be more successful at selling your property than you’ll be on your own. In many instances, you may pay costly fees to a broker who isn’t able to sell the property.
- Timeshare transfer company – If your timeshare developer is in need of inventory, this may be an option available to you. You’ll need to work with a timeshare transfer company that will charge you a fee for the transaction and in most instances, you’re unlikely to receive much money from the developer in exchange for your property. If you choose this option, it’s crucial that you do your research and work with a reputable timeshare transfer company with the experience and connections necessary to facilitate this transaction.
- Timeshare cancellation company – This is the most effective way to get out of your timeshare and if you’re still making mortgage payments on the property, it may be the only solution available to you. The cost associated with this solution will depend on the specifics of your contract.
Other Factors Impacting the Cost of Getting Out of Your Timeshare
In general, the best way to ensure that you safely, legally and permanently get out of your timeshare is to work with a timeshare cancellation firm. Since cancelling a contract is a legal transaction, it’s always best to choose a timeshare exit company that offers attorney-based solutions.
The cost of legally canceling your timeshare will depend on a variety of factors, including:
- The length of time you’ve owned the timeshare
- The timeshare developer or resort you purchased through
- The cost of your annual maintenance fees
- Whether you’re still carrying a mortgage on the timeshare and if so, the balance remaining on your mortgage
- Whether you’re up to date on all maintenance fees and mortgage payments
- The past due balance owed, if you’re behind on your payments
- The specific terms of your timeshare contract
If you’re ready to get out of your timeshare, we’re here to help. Please contact us today to schedule your free consultation.
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