How Much is a Timeshare? A Complete Guide to Timeshare Costs

Are you thinking of buying a timeshare? Understanding vacation ownership costs is essential to getting the most out of your ownership, as buyers who fail to consider and budget for these expenses often end up overwhelmed and dissatisfied. There are several costs to consider before you buy a timeshare, from the upfront price to annual maintenance fees to exchange fees and more. However, for buyers who go into their purchase with a strong grasp of the costs, vacation ownership can be a great way to travel and can even save you thousands over a lifetime of vacations. So, how much is a timeshare? Keep reading to find out!

How Much is the Initial Purchase Price of a Timeshare?

The upfront cost of a timeshare depends on a variety of factors. If you want to buy a fixed-week or floating-week timeshare, the popularity of your timeshare week and/or season will have a large effect. For points-based ownership, the price per point and number of points you buy are two of the most significant factors.

Other determinants include resort location, size of the unit, the type of timeshare contract you enter into (e.g., deeded timeshare vs. leased timeshare vs. fractional ownership), and the popularity of the brand. The cost of a Disney Vacation Club timeshare, for example, will vary widely from the cost of a Holiday Inn Club or Wyndham Destinations timeshare.

However, the biggest factor determining the initial purchase price of a timeshare is whether you buy it from a timeshare company (aka the timeshare property developers) or on the resale market. Below, we’ll break down the average upfront cost for retail and resale timeshares in 2023.

How Much is the Initial Price of a Retail Timeshare?

Every year, the American Resort Development Association (ARDA) releases its State of the Vacation Timeshare Industry report. According to the 2024 report, the average transaction price for retail timeshares bought in 2023 was $24,170. This reflects a 1% increase over the average transaction price for 2022.

What is the Upfront Cost of a Resale Timeshare?

Buying a timeshare on the resale market can save you thousands of dollars compared to buying directly from the developer. Why? Well, when owners can’t regularly use or afford their ownership anymore, they often turn to the secondary market as a way out. Because they are highly motivated to sell and because they get to set their price, you can find timeshare resales for thousands less than timeshares for sale on the retail market. And best of all, you can enjoy most, if not all, the benefits enjoyed by the original owner.

Closing Costs

Another expense to keep in mind is closing costs. These can include things like title tax fees, deed recording fees, transfer fees, and commissions. Buyers are typically expected to cover the closing costs. However, this can be negotiated, as sellers sometimes agree to cover some or all of the closing fees to make their resale more attractive.

Recurring Costs of Vacation Ownership

In addition to the initial purchase price, vacation ownership involves several recurring secondary costs that you continue to pay throughout the life of your ownership. Unlike the initial price, these secondary costs are not affected by how you buy your ownership (e.g., on the resale or retail market).

Annual Maintenance Fees

The most expensive secondary cost of vacation ownership is yearly maintenance fees. As the name implies, these fees mainly cover the maintenance of the timeshare property. However, they also go towards employee payroll, amenity upgrades, unit renovations, property taxes, and emergency funds.

Every vacation owner is responsible for paying maintenance fees. They are typically billed annually. However, they may be billed monthly, quarterly, or biannually. As mentioned, these fees cost the same whether you buy them on the resale market or directly from the developer, and the cost is determined by factors such as unit size, how many points you own, and the services and amenities offered by the timeshare resort. Due to inflation, resort aging, and other factors, they tend to go up over time.

According to ARDA, the average cost of yearly maintenance fees in 2023 was $1,260. This marks a 7% increase over 2022. However, as previously stated, annual maintenance fees vary based on unit type. Here is a breakdown of the average costs for different types of units:

Managing Your Maintenance Fees

The long-term cost of annual maintenance fees can be a deal-breaker for some potential vacation owners. However, there are some strategies to help you better manage and even lower your fees.

• Negotiate With Management: If you think the resort’s management company is overcharging you for services, you may be able to negotiate for a lower maintenance fee amount.
• Join the HOA Board: By joining your resort’s HOA board, you can have a say in how the resort allocates the budget and manages the vacation property, potentially lowering fees for all owners.
• External Exchange: If your home resort maintenance fees are too high, consider exchanging your ownership on vacation exchange networks like RCI or Interval International. Most reputable resorts are affiliated with at least one of these platforms.
• Rent Out Your Timeshare: Renting out your timeshare is a great way to cover your maintenance fees while you aren’t using it. Some timeshare developers offer in-house rental programs, but you can also rent out your timeshare with a resale company.

Annual Dues Vs. Maintenance Fees

Another recurring secondary expense of timeshare ownership is annual dues. The terms “maintenance fees” and “annual dues” are often used interchangeably. However, they aren’t technically the same thing. While maintenance fees tend to be allocated to your home resort, annual dues cover internal exchange fees and other costs of using your wider vacation club network. Thus, annual dues are primarily a cost of points-based vacation ownership rather than more traditional types.

Is Vacation Ownership Worth It?

So, now that you know how much a timeshare costs, the question becomes, is owning a timeshare worth it? Well, the answer depends on your needs. If you’re someone who doesn’t like to travel regularly, then a timeshare might not be for you. However, if you’re a regular vacationer, want to broaden your travel horizons with a vacation club, have a favorite vacation destination you want to return to annually with a fixed-week timeshare, or you simply want to enjoy home-like comforts and top-notch amenities when you vacation, a timeshare can revolutionize the way you travel.

While a timeshare obviously costs more than a hotel room, it can save you thousands of dollars over the life of your ownership. How? In short, as inflation grows over time, so does the price of booking a hotel room or renting a vacation home. With a timeshare, however, you can lock in a lifetime of vacation lodging at today’s prices.

All that said, a timeshare is not a financial investment. Like most luxury products, timeshares tend to depreciate after you buy them. But while you shouldn’t buy a timeshare as a financial investment, owning a timeshare can be a great way to invest in the quality of your vacations and your overall quality of life.

Timeshare Financing

Even resales can be expensive upfront. But you don’t necessarily have to pay in full today to become a vacation owner today. With our partners at Vacation Club Loans, you can spread out your payments and start living your vacation dreams now. Choose from a range of financing options and enjoy fast online approval, low interest rates, and no prepayment penalty!

Don’t Lose Money to a Timeshare Scam

Vacation ownership is expensive as it is. Losing money to a scam company can add insult to injury. Unfortunately, many vacation owners fall victim to scams like so-called cancellation companies and exit companies. Don’t let a scam company cost you even more. Keep an eye out for these red flags:

• Cold Calls: Many timeshare owners receive cold calls from cancellation and exit companies. It is illegal for a timeshare company to call you out of the blue. As a general rule, if you get a cold call from a timeshare company, it’s a scam.
• Contract Cancellation: Any company claiming it can cancel your timeshare contract should raise red flags. A timeshare agreement is a legal contract and you cannot simply cancel it.
• Advising Against Paying Your Fees: Beware of any company advising you not to pay maintenance fees. Haulting your maintenance fee payments can result in serious consequences, such as defaulting on your ownership, foreclosure, and credit impacts.
• Large Upfront Fees: Generally speaking, a legitimate resale company will never charge you thousands of dollars in upfront fees.

The American Resort Development Association

Looking out for the above red flags can save you a ton of money and heartache. But why look out for numerous red flags when you can look out for one green flag? In short, before you decide to work with a third-party timeshare company, make sure they are a member of the American Resort Development Association (ARDA).

To become an accredited member of ARDA, companies must demonstrate their adherence to ARDA’s Code of Ethics, a strict set of guidelines designed to protect the interests of timeshare buyers and sellers. As a member of ARDA, BuyATimeshare.com is a name you can trust.

Buy a Timeshare With BuyATimeshare.com

As you can see, there are many costs to consider when buying a timeshare. But with BuyATimeshare.com, almost anyone can afford vacation ownership. Our resale marketplace features low-priced timeshare resales in the world’s most popular timeshare destinations, and top brands like Disney Vacation Club, Marriott Vacation Club, Hilton Grand Vacations, and more! If you’re interested in starting vacation ownership, browse our complete inventory of resales at the link below, or get in touch by calling 1-800-610-2734 or emailing us at info@buyatimeshare.com.

Try Before You Buy With a Vacation Rental

Not ready to commit to ownership? With a timeshare rental, you can get an idea of the timeshare lifestyle without committing long-term. Click the link below to explore our complete selection of vacation rentals, and book your vacation today!