Buying a lifetime of vacations at a dream-like resort or with a luxury travel club is an exciting experience! You may already have a brand in mind, like Marriott Vacation Club or Club Wyndham. You might just have a list of must-see destinations, such as Hawaii or the Bahamas. Either way, it started with “I want to buy a timeshare.” Before whipping out your wallet, make sure you know what to expect: like timeshare maintenance fees or the closing service costs at the table.
Timeshare Closing Services: A Necessity with a Price Tag
When purchasing any sort of vacation ownership, there are always closing costs. Just like when you purchase a home, the real estate agents involved have fees that come with their services. The same applies to timeshare.
Closing companies ensure that a safe and legal transfer of ownership takes place. Fees from closing companies typically range from $300 to $500 and cover their services. These costs do not include the recording fees by the state or taxes on top. Next, the deed needs to be prepared alongside required tax forms. Escrow services will hold funds and disburse them after the sale, and finally an estoppel certificate is obtained from the resort, which verifies there are no outstanding fees of the timeshare.
Buyers or sellers are never required to use closing companies or services that require fees, and can facilitate a sale themselves. However, because of the legal knowledge that is necessary to ensure a responsible purchase, it is not recommended to handle the sale yourself. Timeshare closing services are a necessary cost, and they come with a price tag.
The buyer almost always pays the closing costs of a timeshare, unless other arrangements have been made in circumstantial cases. So, if you’re trying to sell what you already own and have no outstanding fees or dues, then you as the seller normally don’t pay any of these closing costs.
Don’t Forget About Timeshare Maintenance Fees!
Once you own your timeshare, remember that there are maintenance fees and timeshare dues that must be kept up with. Again, you can’t buy a regular home without paying HOA fees or taxes, and the same goes for vacation owners.
Maintenance fees go towards the cost of running your specific resort. Employees, cleaning services, landscaping and even disaster relief are all where that money goes. There are also property taxes, as well as HOA dues in some cases. Before buying a timeshare, make sure you know exactly what these will amount to so you can plan ahead and there are no surprises. According to ARDA, the average annual maintenance fees for a timeshare in 2018 was $1000. The consequences of not paying your timeshare maintenance fees can make it difficult to unload later on (if you choose to do so), or the resort can take back your ownership. This affects your credit as well, so it is never a good idea to stop paying these dues.
If you’re looking for a way out of these maintenance fees later on, the most responsible thing to do is to sell your timeshare on the secondary market. With Timeshares Only, owners can find relief from their maintenance fees immediately with our TOGO program. It’s also a good idea to offer your interval for rent to help cover these costs.
The Cheapest Way to Buy a Timeshare
If you’re a frequent traveler or looking to make memories with your friends and family for a lifetime, buying a timeshare resale is the best way to go when you’re looking for the cheapest options. Timeshares on the secondary market are exponentially less expensive and come with most of the same benefits as when you buy directly from the resort.
Keep in mind that buying a timeshare is not much of an investment, which is why units or points on the secondary market are at a much smaller price. Our advice for buying a timeshare resale? Know exactly what to expect in the closing process. You may be saving on the price but the timeshare closing services and maintenance fees stay the same!
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