Timeshare is a concept known by many and deeply understood by many less. Two primary types of timesharing plans exist: deeded and non-deeded. A deeded timeshare offers consumers an ownership in the property while non-deeded types only provide a predetermined amount of time to use the property to buyers. Both plans are priced in proportion to the time of the year and the length of the time that the owner wants to purchase.
 
Before signing any contracts, it is important to understand exactly what owning a timeshare entails. With the proper knowledge, careful consideration and possibly professional advice should be combined in order to determine whether a timeshare is right for you.
 
The following points should be considered before buying a timeshare:
 
The main reason people purchase timeshares is to have a predetermined vacation destination. If you won't be able to use the facilities on a regular basis, it may not be practical to buy a timeshare. Also evaluate whether the timeshare will have a unit available when and where you want to use it.
 
Do not blindly believe any information someone tells you about the investment probabilities of a timeshare. Future values of timeshares are uncertain and resale of the units are nearly impossible.
So realize that if you purchase a timeshare, it is unlikely that you will be able to sell it at all or at least for much less than you paid for it. The fees associated with closing, brokers, and financing should also be considered as investment costs.
 
The cost of the timeshare, in its entirety, includes mortgage payments and variable expenses such as the cost to travel to the destination and the pesky annual maintenance fees that seem to rise every year in line with or ahead of inflation.
 
To effectively evaluate buying a timeshare, compare the cost of the timeshare with the costs of other types of accommodations at the locations you desire. Take into account the various types of amenities available at both destinations.
 
Avoid acting impulsively or from pressure. Look over the contracts carefully or have someone who knows about timeshares to review the contracts. Allow yourself a couple of days at least to analyze the situation completely.
 
Ask if the contract comes with a "cooling-off" period that will allow you to cancel for a full refund within a certain amount of time.
 
Be certain that everything guaranteed by the salesperson is written into the contract.
 
Know that exchange programs with other locations cannot be guaranteed. A trade should provide you with a timeshare comparable to your own.
 
Frequently a "gift" will be offered to people willing to listen to a pitch from a timeshare salesperson. The gifts are often of little real value and should not be a factor in determining whether you attend a presentation or not. Go to a sales pitch only if you are genuinely interested in possibly purchasing a timeshare.
 
It may be a good idea to consult with real estate agents, the Better Business Bureau, and local consumer groups to check out the history of the timeshare company before buying a timeshare.
 
If the timeshare you are purchasing has not yet been finished, get in writing a determined time by which the facility will be finished. Also request that an amount of the purchase price be held in escrow.
 
Learn about your rights if there is a problem with the builder or management company. Be certain that your contract includes a non-disturbance and nonperformance clause.   A non-disturbance clause protects your purchase in the event of a third party default and a nonperformance clause permits you to retain ownership rights in the event that a third party purchases your contract.
 
If you are concerned and have questions about a timeshare you already own, call the Real Estate Commission in the state where your timeshare stands and the Correspondence Branch.
 
If you are currently the owner of a timeshare, beware of individuals who promise you that they can sell your timeshare for you at some cost to you. Many of these "companies" are scams, so be sure that you are dealing only with genuine sales companies.
 
Businesses that use questionable selling tactics work much like other telemarketing cons. You may receive a call or a postcard, telling you that the resale market for timeshares is "hot" and that they can promise you a quick sale equal to or more than the price you paid for the timeshare. Then they ask you for an advance fee of hundreds of dollars.
 
Currently the resale market for timeshare is poor, due to the fact that there is no secondary market for timeshares. At this time Americans own 1.5 million timeshares with 870,000 of those available for resale. 845,000 are priced far lower than their original cost.
 
Over the past two decades, only 3 percent of the timeshares for sale have sold, and the wide majority of those sold for less than their purchase price. This should prove that the claims of those scam resale companies are false.
 
If you do decide to sell your timeshare and are considering a resale company, remember a few points: Do not make any agreements over the telephone; ask for written material to be mailed to you for your consideration; Ask for references from the company; Ask the location of the company and from what state it operates; Ask if the company uses agents that are licensed in the state where your timeshare is located; Be wary of any company that charges an "listing" fee in advance.
 
To sum up, timesharing is a plan for leisure, not an investment. Timeshares shouldn't be considered as a way to make money. By asking yourself how much your vacation time is worth, you can determine whether a timeshare is right for you.