The Cost of Getting out of a Timeshare
Recommended Timeshare Exit Companies
The Cost of Getting out of a Timeshare
- December 8, 2021
Table of Contents
The Cost of Getting Out of a Timeshare
Let’s face it – buying a timeshare is not a good investment because this investment will lose money at some point in time. If you do not intend to get rid of your timeshare, the resort will charge you for maintenance. In fact, some timeshare companies also demand club dues. Most companies do not care whether you are an active owner or not—all they care about is the annual fees, and nothing else.
If you also decide to get rid of your timeshare, be prepared, because you are still going to lose money, especially when you have owned the contract for a long period of time. You may have to spend to get out of the contract. Even if you are still lucky to see a buyer on the resale market, you are not going to get paid for the value of your timeshare. Buying timeshare is never a way to make money!
The truth is that your timeshare will lose value because people are not interested in buying it. Most of the people you meet in the resale market are probably people like you, who also want to get rid of their own timeshares. So, do not hope for a large return on your investment. Instead, focus on how to exit your timeshare contract and deal with the costs involved.
What it will take to get out the timeshare deal will depend on the method you are planning on adopting. And your timeshare conditions, most times, will dictate which method to choose and which method to forego. For instance, a new timeshare owner who is still within their rescission period will want to explore the simplest option of rescission eligibility. What are we saying? All we are saying is that the cost of getting out of a timeshare depends on your method of exiting your timeshare contract.
There are seven specific methods a timeshare owner can choose to exit their timeshare. In the subsequent paragraphs, we shall examine each method and the average cost you are likely to incur choosing a method. Comments shall be passed on each of the methods, and the amount of effort it will take shall as well be examined.
Methods of Timeshare Exit, Costs, Comments and the Required Effort
1. Rescission Method
This is one of the many methods a timeshare owner can choose to exit their timeshare contract. This method allows that a timeshare owner who has just purchased their timeshare return it to their resort and demand a full refund. This method is in accordance to state laws. With this method, if you complete all steps that are required under the rescission act, the resort itself does not have any choice but to accept the returned timeshare without question. This method is the easiest if everything works according to plan.
Cost
The good news for those who are eligible to choose this exit method is that they will not have to pay the resort developer any money. The resort developer will instead be the one to return customers’ money in full. In other words, this method of timeshare exit attracts no fee.
Effort and Comment
This method does not only require money; in addition, it requires minimal effort. You do not have to do much to get the contract rescinded. Nevertheless, the timeframe of rescission differs depending on the state where you get your timeshare. But in a general sense, timeshare owners who recently purchased their timeshares have between 3 and 14 days to act. Failure to act within those days will result in forfeiture of this option.
2. Deedback Method
Deedback is another program of timeshare exit designed by some timeshare developers to help some of their customers who can no longer cope with the financial demand of their timeshare maintenance. In this method of exit, developers will take back your timeshares even after you have lived out your rescission days. One interesting thing about this method is that the owner of the timeshare may still get some money back if the resort developer finds a new owner.
Cost
Deedback program is different from rescission method. While the deedback method attracts fees, recission does not. If you are offered the deedback program, you are likely to pay between $500 and $2,000.
Effort and Comment
This method does not require much effort. The company from which you got your timeshare offers the method, and this process only a little effort to complete. However, not all timeshare companies offer this, and neither is it for all timeshare owners. Only timeshare owners who have paid for their timeshares in full, and who regularly pay their maintenance fees, qualify for this program.
3. Self-sale Method
You can advertise and sell your timeshares on RedWeek, Timeshare Users Group, eBay, Advertise my Timeshare, Craigslist and My Resort Network, etc. Those are some of the platforms that can offer you an exit route out of your timeshare contract.
Cost
Craigslist does not charge any fee, eBay may charge $50, My Resort Network may charge $34.95, Timeshare Users Group may charge $15/ year of membership, and RedWeek may charge between $59.99 and $125.
Effort and Comment
It may require a high effort to get your timeshare off the market. That is because there are many other timeshare owners who also want to sell their timeshares. Most timeshares are extremely difficult to sell because they do not usually retain their value. If you want to sell your timeshare on any of these platforms, avoid paying a high upfront fee.
4. The Use of Timeshare Broker
You can as well hire a timeshare broker to help sell your timeshare if you could not get out of the contract via some of the above options. Timeshare brokers will help take the job of finding a customer for your timeshare upon themselves.
Cost
Timeshare brokers do not charge upfront fees for their service, and it is considered illegal in some states. Rather than charging an upfront fee, brokers work on commission. They get their incentives by going away with the 50% of the final sale price. So, if you want to exit your contract through timeshare brokers, be ready to give up half of the money of your timeshare if you eventually succeed selling it.
Effort and Comment
This method does require a low effort from the timeshare owner since most of the selling work will be done by a broker employed. This method is thus a great method partly because it does not require any upfront payment.
While this method could be better for a timeshare which still has value, it may not be the best of deal for the brokers if the timeshare has lost its value. This is because brokers only work on commission. So, the broker may not want to take up your job if they discover that your deal cannot make them enough profit.
5. Timeshare Transfer Company
When your resort developer needs an inventory, they will offer to buy your timeshare. That is what they call “inventory recovery,” and you can exit your timeshare contract through that method
Cost
When the developer needs your timeshare, they will get it from you at a cheaper price. You can always expect to receive between $1,000 and $2,000, depending on several factors. But when they do not need inventory and you want to hire them, you could be charged between $500 and $3,000. More often than not, timeshare transfer companies charge less than timeshare exit companies.
Effort and Comment
This method also requires little effort, as the company will take the lion’s share of the work. However, to enjoy the service of this company, you will have to hire a popular timeshare transfer company with experience and connections within the industry.
6 &7 Timeshare Exit Companies (with lawyers and without lawyers)
These options are the ideal options for those who still owe mortgages. Some timeshare exit companies use attorneys while other do not. Either way, these are still the most expensive options. While working with these companies, you will have to reveal everything about your timeshare contracts. And it’s during that consultation program they will find the loopholes they will explore in getting you out of the contract.
Costs
Timeshare exit companies which make use of attorneys may charge between $4,000 and $ 15,000 while those with no attorneys may charge between $2,000 and $15,000.
Efforts and Comments
While the timeshare exit company which does not make use of attorneys will demand a high effort from you, timeshare exit companies which make use of attorneys will only demand an effort on a medium level from you.
Timeshare exit companies with attorneys are more reliable, while those with no attorneys are not to be fully trusted.
Conclusion
The higher money you spend on your timeshare exit, and the more effort you put into it; the easier the exit will be.
