The Average Cost to Get Out of your Timeshare
If you are interested in the average cost to get out of your timeshare, you came to the right place. Timeshares, also known as shared vacation ownership, is a distributed type of ownership to use rights. People purchase a period of time in a resort having on-site amenities to spend their vacations. These amenities generally include a restaurant, bar, gym, pool, and more.
People who want vacation ownership, like to own timeshares. They prefer timeshares because it’s easier to buy than a whole other mortgage.
Your lifestyle does not remain the same from the time of the timeshare purchase. You may have different plans to spend vacations, visiting grandkids, visiting other places because you’re exhausted from staying at the same location every time, and more.
You may realize it was a big mistake after signing the timeshare contract and hence can feel trapped. Eventually, you can find yourself among those 85% of timeshare owners who want to get rid of their timeshare.
If this is the case, please contact our team through Live Chat or fill out the form on the right for a free informational consultation. Today we will answer many of your questions, including the average cost of getting out a timeshare. Need more help? Call our direct line at 833-931-6555 to speak with one of our expert representatives!
Reasons to Get Out of a Timeshare
At first glance, timeshares always look like an attractive option to spend spare time and vacations. Later on, a long list of reasons can change this attractive option into an abhorrent one. You must remember getting out of your timeshare is not as easy as you may think.
The main problem associated with timeshares is the maintenance fees which are due on a regular basis. Whether you use your resort or not, you have to pay these fees. Moreover, prices increase every year at a fluctuating rate since these are imposed by the developers, timeshare companies, and government.
Mostly, timeshare contracts have no end dates because they are known as perpetuity contracts-to pay an amount rest of your life, and your next generations will inherit this burden. You can bestow the timeshare to your descendants if you want, but the obligation never ends. Conversely, if you are pending on your dues, collection companies will call you again and again and make your life that much more stressful.
As time passes, your preferences will change. It is evident that in early ownership, people enthusiastically visit their timeshare. Later on, they may want to stay somewhere else instead.
Timeshare salespersons’ Common Lies:
You may purchase your timeshare due to several reasons. These reasons may include financial benefits. Therefore, you must consider the most common lies that are told by Timeshare salespersons to achieve their sale.
Below are common lies, salespersons tell their customers.
- If you own a timeshare previously, a salesperson can promise to sell this to purchase a new one. Later on, they will not sell your previous timeshare.
- A salesperson will show it as an investment opportunity. If it is so, then 80% of current timeshare owners would not want to be getting rid of their timeshares.
- A salesperson may try to deceive you, promising a bonus week or a rental program. These incentives are a sales tactic, and the companies will not offer this later on.
- They can deceive you by saying the maintenance fee will remain the same for a lifetime. It is not the case; it will increase at approximately at a rate of 4% each year.
- They can tell you to sell your timeshare weeks to make money. It would help if you visited eBay or Craigslist; visiting these sites, however, may shock you considering current listings are as low as $1 and even $0!
- Salespeople will promise to offer discounts on airfare, cruises, and car rentals. Later on, they will deceive you on it.
- A salesperson can advise you to rent your timeshare later on. However, finding a renter is hectic.
- You may be deceived with the later one free exchange offer with another timeshare. But you will be asked to update your timeshare for this exchange.
Average Cost required to Get Out of a Timeshare
The average cost of getting out a timeshare depends upon the method you choose to get rid of it. Mostly, owners use seven different ways to get out of their timeshares. These methods are discussed in detail based on cost and effort from the owner’s side.
- Rescission
Most of the countries have made timeshare rescission laws. These laws permit the owners to return their timeshare directly to the timeshare company for a full refund. However, the rescission period must be followed, and it varies from country to country. Mostly, this period is 3-14 days.
In this method, you only need to send a rescission letter in a particular format. Hence low effort is required. Further, this method is cost-free.
- Deed Back Directly To The Timeshare Developer
It is the best method available if you do not want to sell your timeshare. This option is not available for every timeshare since not all developers offer a deed back option. Before opting for this, you must be current on all dues of your timeshare.
Usually, the timeshare developer charges a fee from $500 – $2000.
- Selling The Timeshare On Your Own
Selling a timeshare at your own is a difficult choice because you hardly get a reasonable price. The main reason is timeshares decrease in value considerably after purchase.
In this method, you have to advertise your timeshare. Hence, the average cost to get out of your timeshare is the advertisement cost. It costs about $50 – $125 on average to advertise on the following websites.
- Craigslist (free)
- eBay ($50)
There is no need to pay a high up-front fee that exceeds $150 for advertising your timeshare on the internet. Moreover, it can take more than a year to find a favorable customer to sell your timeshare; therefore, it requires high effort.
- Selling The Timeshare Through A Timeshare Broker
This method is excellent if your timeshare is of fair value. You can sell your timeshare through a broker. Timeshare brokers work on commission. Therefore, they like to sell a well-valued timeshare to earn a good amount.
Because of the broker’s commission, this method may be costly. The average cost to get out timeshare in this method depends upon the commission rate. A low effort from your side is required.
- Through A Timeshare Transfer Company
It is a great option when your timeshare developer needs inventory. Therefore, this method is also referred to as inventory recovery. The developers contact the timeshare real estate brokers and Timeshare Transfer Company to collect inventory.
You need to search for a well-known Timeshare Transfer company having good experience and connection with your developer to get more benefits in this option.
Developers do not pay much in general. Though, you can get a price depending on your timeshare condition, week number, and the number of points, etc. You have to pay a fee to transfer the company to avail of this option.
The average cost to get out of a timeshare in this method falls somewhere from $500 to $3000. The fee of Timeshare Transfer Company is generally less than a law firm or Timeshare Exit Company. In this method, less effort from your side is required.
- Timeshare Exit Company Working With Lawyers
Although it is the best way to get out of your timeshare, in contrast, it can prove to be the most expensive method. Furthermore, you may need to write a statement to describe your situation where you were misled or told a lie during the sales presentation. Consequently, you may have to do some work.
This is one of the only methods for those who owe a mortgage since getting rid of a mortgage timeshare is very difficult. Besides, most of the timeshare developers do not allow you to deed back if you owe a mortgage.
The average cost to get out timeshare in this method is about $4000-$15000. If the owner owes a mortgage on the timeshare, this fee can go up significantly. A medium effort from your end is required in this case.
We always recommend working with companies that offer escrow, so you pay $0 up-front fees directly to the exit company.
- Timeshare Exit Company Working Without Lawyers
This method is cheaper than a Timeshare Exit Company that works with lawyers. However, it does not always work. You may need to write a statement to describe your situation where you were misled or told a lie during the sales presentation. You will need to write more letters, as well.
The average cost to get out of your timeshare in this method is somewhere between $2000 and $15000. A high effort from your side is required.
Final Thoughts
In this article, we have discussed many noteworthy points about getting out of a timeshare. Therefore, you must be very careful from the start because once you purchase a timeshare, it can cost you quite a lot when cancelling it.
Generally, your effort and cost have an inverse relation. The more effort you put into getting out of your timeshare, the cheaper it will be. Contact our team for a free informational consultation so we can recommend you the best exit company for your situation and help find legal exit options best for you.