What Is A Timeshare And How Does It Work?

If you’re a prominent vacationer, then you might have bumped into the term timeshare. So, What is a timeshare? Well, timeshares acquire the same meaning as vacation ownership and are classified as a vacation property arrangement. They allow you to improve your vacation experiences indefinitely while enabling you to visit the most sought-after vacation destinations in luxurious world-class resorts.

Timeshares hold value as a vacation lifestyle product that permits owners to utilize resort units for a fixed amount of time. Purchasing a timeshare is an excellent way to save money over time and visit new destinations, especially if you’re an annual vacationer. If you’re unsure whether vacation ownership is for you, continue reading to learn more about general timeshare FAQs and “What a timeshare is and how it works.”

What is a Timeshare?

You may have pondered the question “What is a Timeshare?” at least once in your lifetime. Well timeshares are properties within resorts and can range from villa-style accommodations to condo-style suites. Accommodations are divided between multiple owners at a time and then diverged into 52 weeks, allowing owners to vacation for a specific week at the property. For a simplistic definition, owners share the timeshare property over time, hence “timeshare.” As time progresses, numerous types of vacation ownership are evolving, and many brands are moving to a points-based system of ownership rather than the traditional same-week, same-resort ownership. Owners can then enjoy flexibility in their vacationing options.

How Do Timeshares Work?

Nailing what a timeshare is may be easier than figuring out how it works. Although complex, understanding how timeshare agreements really work will guarantee you everlasting vacation success. In a timeshare agreement, the expenses of owning a property spread out among multiple people, allowing them to enjoy the benefits of ownership without bearing the entire cost alone. Owning a timeshare is an excellent way to save money as you share the cost of ownership with multiple people. Each agreement varies, but each party may own a fraction of the property, or a party can lease a timeshare property for a set amount of time.

What are the different types of timeshares?

With an ever-evolving timeshare industry, it has transformed drastically to suit the needs of all types of owners. When it comes to learning about all the different forms of vacation ownership, it tends to be a bit tricky. Before jumping in and purchasing a timeshare it is essential to research and understand the numerous types of timeshares before concluding a decision. Here is an overview of the various timeshare types to ponder.

Deeded Timeshares

A deeded timeshare contract retains the same ownership rights as real estate and is considered vacation real estate. Although different from owning real estate, vacation ownership is not an investment, and it does not appreciate over time. With that being said, owners are expected to pay property taxes. Deeded timeshares are an excellent type of ownership if you are interested in making one resort your home away from home. In most cases, owners can use their deeded timeshare for a specific week each year (a fixed week). Owners can sell, rent, bequeath, or give away their deeded timeshare ownership. 

Right To Use Timeshares

A right-to-use timeshare contract grants owners the right to utilize their ownership for a specified period through a lease agreement. Typically, these leases are between 30 to 99 years in length. Once the designated period ends, ownership of the property is returned to the resort, or the lease is terminated. You will often find RTU timeshares in international destinations since international residents cannot own real estate in countries they are not citizens of.

Leasehold Timeshares

A leasehold timeshare contract obtains an explicit expiration date as they aren’t owned in perpetuity. Ultimately, they hold equal benefits and rights as other timeshares. An example of this a leasehold timeshare company is Disney Vacation Club.

Different Timeshare Sub-types

In addition to the several types of timeshares, there are also a number of sub-types. The above non-sub types are the timeshares you own, and the sub-types are types within those timeshares, indicating how often you can use them. To put this into perspective, Disney Vacation Club is a leasehold and a points-based timeshare.

Fixed Week Timeshares

Most people are familiar with fixed-week timeshare ownership. Generally, with all timeshares, owners pay upfront for their annual share of time in the resort, typically calculated to one week. Additionally, each resort abides by its calendar system for its owners. For example, the first week of January is week one in a calendar year, while the last week of December is week 52. A fixed-week timeshare permits owners to stay at the same resort at the same time each year. This type of timeshare is excellent for those who love to travel to a specific property or destination and want to make it an annual vacation routine.

So, if you find a timeshare nestled in a tropical oasis that makes the best on-site piña coladas and you’d like to keep coming back, consider purchasing a fixed-week timeshare to fulfill your annual tropical timeshare vacation desires.

Points-Based Timeshare

A points-based vacation ownership contract is a popular and widely used type of ownership in the current market. Owners can purchase timeshares in the form of points at their home resort, and owners can utilize their points to vacation either in their home resort or exchanged to stay at other resort properties within the brand’s network. Here are a few brands that operate on a points-based timeshare system: Disney Vacation Club, Wyndham and Marriott. Every year, timeshare owners receive an allocation of points, and owners can determine how they want to utilize their points.

To put this into perspective, if you own numerous  WorldMark by Wyndham points, you can disperse them on a few weekend adventures or utilize them for a week-long stay. You could also stay in a smaller unit for one week or even two weeks, depending on how many points you have. A points-based timeshare is a popular choice among vacation owners due to its flexibility for owners to choose when, how, and where they want to vacation. Additionally, this type of ownership is perfect for those who enjoy exploring new resorts and locations at top timeshare destinations.

Floating Week Timeshare

A floating week is a type of timeshare that allows owners to select the week they want to stay at a resort within a specific period or season. For example, if an owner purchases a summer season floating week, they can visit their unit during one available week as long as it’s in the season purchased. With that said, if you know the season you’d like to plan your vacation in but are unsure of the specific week, this timeshare type is for you! Unlike fixed-week timeshares, a floating week is more flexible for owners.

Biennial vs. Annual

Biennial timeshares have usage rights every other year. They differ by year and are used in both odd and even years. Biennial timeshares are the perfect option for those who plan vacations every other year.

Fractional Ownership

With this ownership, each owner purchases and has rights to a more extensive portion of a resort. Instead of dividing the unit time into 52 weeks, it’s split into fourths, eights, or thirteenths. Although this is a rare occurrence, it’s still a possibility for owners.

Why Do People Buy Timeshares?

Folks invest their time in the vacation ownership industry for their vacation needs due to its flexibility, affordability, comfort, and guaranteed satisfaction. Unlike a hotel room, timeshare accommodations offer more space, which impacts the overall quality of a vacation experience. A hotel room tends to be a room with beds, a bathroom, and, if you’re lucky, a small common area. With a timeshare, owners can enjoy multiple private bedrooms, large bathrooms, spacious common areas, kitchens, and often a private porch or balcony with stunning views.

Buyers relish the extensive savings associated with ownership. When you buy a timeshare, you lock in today’s rates and avoid inflation. Get more for less with spacious accommodations and utilize the resort’s note-worthy amenities. 

Owners obtain the flexibility to rent their points or week out to potential renters, so you can cover your ongoing fees and annual maintenance fees if you don’t use your vacation ownership.

Further, people like to purchase timeshares due to their location in the most sought-after destinations. For example, DVC has numerous superior resorts in California, Orlando, Hawaii, and more. If you’re interested in traveling internationally, consider staying at renowned resorts offered by brands like Wyndham and Marriott.

Top-Notch Amenities

Resort properties hold extensive lists of top-tier amenities, enabling satisfaction and fun for every guest. Most resorts have numerous water amenities, like spacious indoor heating pools or lengthy lazy rivers, so guests can enjoy a splash wherever they go. Many resorts also feature fully equipped fitness centers and sports courts to help fulfill your athletic needs. Some resorts also offer complimentary Wi-Fi, on-site dining, children’s activities, a game room, and much more!

Residence Style Accommodations

Timeshares provide owners with luxurious and spacious accommodations, unlike most hotels. Typically, accommodations consist of one-to-three-bedroom villas, suites, or condos that usually feature private bedrooms, living spaces, dining spaces, fully equipped kitchens, and other residence-style-like necessities. Timeshares allow the guest to feel the comfort and welcome of their own home away from home.

Vacation Ownership Exchange Program

Booking a vacation in the same resort and location may please some folks as it allows them to enjoy their favorite annual vacation spot and the comfort of their home away from home while on vacation. However, if you want to expand your horizon and mark off numerous vacation destinations on your bucket list, then you should consider enrolling in a timeshare exchange program. Fortunately, many resorts have affiliation with exchange companies such as RCI and Interval International (II). These companies allow you to trade your vacation ownership week for another resort for a membership fee.

RCI (Formerly Known as Resort Condominiums International)

RCI is a leader in the global vacation exchange industry. It is a vacation exchange network that helps timeshare owners get the most out of their ownership. RCI members can utilize 35,000 exchange options in over 100 countries. Vacation exchange with RCI is an excellent program that enables owners to exchange time at their home resorts for a stay at affiliated vacation properties. With this, owners can receive better value, increased flexibility, and numerous adventures to share with loved ones. To become a member and utilize the benefits of the RCI program, you must be a vacation ownership owner and pay annual membership fees.

Some RCI-affiliated brands are Hilton Grand Vacations Club, Wyndham Vacation Ownership, Welk Resorts, Bluegreen Resort Vacations, and Holiday Inn Club Vacations. With this, it’s important to understand that not every brand in a resort is eligible for exchange.

Interval International (II)

II permits owners to visit resorts outside of their network without buying another timeshare week or more points. II is affiliated with top vacation ownership brands, allowing members leeway to destinations across the globe. As a member, you are responsible for exchange fees, but the possibilities of travel are limitless! Enjoy Interval International exchange opportunities at resorts like Marriott’s Mountainside, The Villas at Disney’s Grand Californian, Hyatt Ka’anapali, Ocean Beach Club by Diamonds Resorts, and more! Relish the everlasting savings, flexibility, and ability to travel to renowned vacation destinations worldwide.

How Much Does A Vacation Ownership Cost?

Timeshare costs depend on location, resort, season, accommodation size, and a few other factors. According to the American Resort Development Association or ARDA, the average cost of vacation ownership in 2022 was $23,940. However, buying from the resale market is much lower than retail timeshares. Although from the secondary timeshare market, brands strive to keep resale units looking luxurious, clean, and untouched-looking so you can purchase the same stunning ownership for less.

Further, if you’re not looking to pay in full, you can finance your timeshare with the help of our friends at Vacation Club Loans!

Moreover, conducting thorough research is vital to find a timeshare that suits your needs and wants. There is a timeshare out there for everyone!

Vacation Ownership Maintenance Fees

Outside of the initial vacation ownership cost, you must also consider the mandatory annual maintenance fees when purchasing a timeshare. Maintenance fees are yearly payments due to either the resort or HOA. These funds go towards upkeep, maintenance, employee wages, and more. The average annual maintenance fee in 2022 was $1,120. Of course, this depends on how many points you own, your unit size, resort popularity, etc.

The Resale Market

Like traditional real estate, there are timeshare listings on the resale market. Resales are sold by owners who no longer utilize their points or weeks and want someone to take over their ownership. At  BuyATimeshare.com, we can help you list your vacation ownership for sell, or help you find a timeshare resale. Hence, resales are generally more affordable as they are a fraction of the cost compared to buying directly with a developer. 

How to Buy a Vacation Property

Are you drawn to fun amenities, spacious accommodations, and endless savings? If so, you might want to consider purchasing a timeshare to fulfill your vacation desires. Before starting the complex buying process, we recommend researching to ensure vacation ownership is right for you and your family. Start by viewing our “How to Buy a Timeshare” blog to get a step-by-step guide to the buying process. 

If you have a specific vacation property in mind, you can start your search now on our marketplace. Our website has tons of resale listings to ponder. Utilize our filtering tool to find units in the most sought-after destinations with stunning environmental surroundings at popular resorts. It’s easy to search by destination, resort, points, weeks, and more. When you find a timeshare for sale that you like, conveniently make an offer using our online offer form.

Best Timeshare Ownership Companies

Before you buy a timeshare, research the companies you want to obtain vacation ownership from. Each brand has its separate perks and system. Enjoy luxurious accommodations and top-notch amenities at top resorts like:

• Wyndham Destinations
• Disney Vacation Club
• Hyatt Vacation Club
• Marriott Vacation Club
• Bluegreen Vacations
• Holiday inn Club
• Hilton Grand Vacations Club

Top Destinations

Timeshares exist across the globe in the most stunning locations that entice people to return year after year. Oftentimes, timeshares are associated with resorts in beach towns, and that’s because most people think of a tropical oasis when they think of vacation. Some top destinations to book your future adventures include Florida, California, South Carolina, Nevada, and Hawaii. Popular vacation destinations are also available in beautiful cities like New York and San Francisco. With plenty of vacation properties scattered throughout these top destinations and more, the possibilities for your next trip are limitless!

Timeshare Seasons

Owners in a floating week or points-based timeshare want to pay close attention to their resort or club’s seasons. Seasons are specified terms of the year that determine high and low seasons in popularity. Each company abides by different naming conventions, such as red, gold, or silver. Floating week timeshares are designed to be used in only one season, so if you vacation in a popular season, you may want to book in advance to ensure you get the dates you want.

Can you Sell a Timeshare?

Vacation ownership is a big responsibility, and it’s crucial to understand that it is not an investment property and should not be treated like traditional real estate. Sometimes life alters, and we outgrow our previous needs and desires. With this, you may not utilize your vacation ownership and decide it’s time to find a way out. Well, good news! We are here to help! Selling your vacation ownership with us is a safe and responsible option to get out of your contract.

To start the resale process, you first want to contact your resort or timeshare developer. Vacation ownership companies like Wyndham, Hilton Grand Vacations Club, Disney Vacation Club, Bluegreen Vacations, and more have owners’ best interests in mind. These brands are associated with the American Resort Development Association. ARDA represents vacation ownership and resort development industries that encourage evolution and advocacy.

Once you are prepared to sell, your vacation ownership brand will offer you various options to divest your ownership. Often, they refer owners to dependable companies that will help owners sell their timeshare, like us. 

Looking Past Timeshare Scams

When selling a timeshare, be cautious of website titles such as “timeshare exit team” or “timeshare exit company,” as they are usually against timeshares and have proven to be red flags. Be wary of companies that request outrageous fees. In addition, when selling your vacation ownership, it’s crucial to never stop paying annual maintenance fees either. Failure to pay yearly maintenance fees can hurt your credit.

What it Means to be a Timeshare Owner

Holding the title of vacation owner is as luxurious as it sounds. Buying a timeshare enables you access to extensive savings, comfort, and the ability to look forward to vacations each year. Hence, vacation ownership means everlasting memory-making experiences.

Buy a Timeshare With BuyATimeshare.com

Join the millions of satisfied timeshare owners and enhance how you vacation forever with BuyATimeshare.com. You can browse top resorts in top destinations worldwide through our easy-to-use filter system. Our marketplace has tons of listings from many of the best vacation clubs, like Disney Vacation Club and Holiday Inn Club Vacations. Regardless of the type of vacation ownership you prefer, we’re here to help you find the best resort for you!

If you have any questions about annual maintenance fees, vacation exchange, or anything relating to the industry, don’t hesitate to call us at 1-800-640-6886. Our licensed agents are happy to help!

Why You Should Work With BuyATimeshare.com

With over two successful decades in the vacation ownership industry, BuyATimeshare.com is one of the most trusted online timeshare resale providers. We hold a team of talented individuals who provide superior customer service and strive to help you purchase or sell a timeshare.