| Timeshare Buyers Frequently Asked Questions |
| OR "How to have your cake and eat it too in interval vacation ownership." Q. What is timeshare? A. Timesharing, Interval Ownership or Vacation Ownership is a property description. It is a way to use shared ownership of over 8,000 resorts worldwide. Timesharing normally allows you to use a property, your property (real estate), generally for one week or more each year. You will pay one total price for the property plus an annual fee, based on size and amenities to maintain it. Q. What are maintenance fees? A. Each unit has it's own cost to maintain, the individual owners divide that unit cost. The resort amenities are also added in plus the taxes. So ultimately, the maintenance fees are the cost to operate the resort. A portion of the maintenance fee is to build up reserves to pay for costs like furniture and appliances. Approximately every five years each unit will receive new major appliances, carpeting or whatever is needed to improve it. Q. How much are maintenance fees? A. Maintenance fee's vary with each individual resort. They are based on the size of the unit and amenities. When you have an inquiry on a property we will be happy to give you that info. The maintenance fee is a separate fee from the closing cost. Q. Will I receive the same benefits of ownership from the resort if I purchase on the resale market? A. In 99% of the cases I would say yes. Some resort golf packages will transfer to the second owner but not the third. That is why we research the property for you before we put it on the market. Deeded 'Points' are transferred to the new owner, however, some resorts have their own systems. Call us with your questions on this. Points can be confusing. Q. What is the difference between a fixed week and a floating week? A. This is a commonly asked question. Think about it. Fixed means 'in place'. If you own a Fixed Week 26, this means you will travel each year to your home resort on Week 26. If you decide that you cannot travel on your fixed week time, you will place it in an internal float bank or use the RCI or II exchange company to travel. The exchange company will bank your week until the following year and then you can enjoy a two week vacation. A "Float Week" is purchased as such, to "float" your time. As opposed to traveling each year the same time. You will float your time according to the season purchased. Red, White and Blue for the RCI Network Exchange and Red, Yellow and Green for the II Network Exchange. (RCI - Resort Condominium International & II - Interval International) Q. What is a point system? A. That is a loaded question. Think about how many point systems there are today. It as if our world revolves around points. Many resorts use a point system. It was founded by Fairfield Resorts in the 80's. The basic point system allows you more flexibility. You can travel 2 or 3 days at a time throughout the year as apposed to a "fixed" weekly vacation time. It is really a question of lifestyle as to which plan works best. As you travel throughout the seasons you will "spend" your "points" accordingly. Q. What is a lock-off unit? A. A lock off unit is basically two units combined with a mutual door. As long as both sides have a kitchen and bathroom you will be able to exchange it as two weeks through an exchange network company. Q. Please explain the difference between a 'Leased' property and a 'Deeded' property? A. You will locate Leased properties most often in the Caribbean, especially Mexico. Leases run from 20 - 99 years. The new owner will have the property transferred in their name and enjoy the remaining balance of time. Deeded property means that it is yours forever. You will enjoy the"bundle of rights" that go along with whole ownership. Q. When I purchase my timeshare are there any extra fee's? A. The only fee's you have are the closing cost. Some resorts charge a 'transfer of ownership' fee which varies in price. Call us and we will give you the transfer cost of the resort in question. Q. When I become an owner I understand that I can exchange the property. Explain. A. There are two major exchange networks RCI (Resort Condominiums International) RCI.com and II (Interval International) Interval World.com The #1 reason why people purchase on the primary market is for the exchange benefit. This is how it works: You "bank" your week with the exchange company, they in turn will accommodate you with a "like for like", "season for season" property. If you own in the highest season (Red) then you will travel in red season. Traveling around the world is a benefit the exchange company provides for a small extra fee. Often the seller will transfer their membership to the new owner. Not all owners use an exchange company. Also, some new owners prefer owning where they vacation each year, like a "home away from home" this is particularly smart when you buy into an area where the land is very expensive such as Hilton Head Island,SC as an example. Therefore, they do not need the exchange network. Q. Why are prices so low on the timeshare resale market? A. Did you know that Developers pay 50 - 55% to the Sales & Marketing company? That much is added to the sales price, so the buyer is paying that built in cost. When the unit goes on the resale market the owner takes the loss in order to be competitive and get their unit sold. The Seller has to compete with all newly built resorts. It is simply "supply and demand ". Some resorts are built so large there is always an eager seller, which will drive the price down on that resort. Timeshare is not an "financial investment" property unless you buy low and sell higher than you paid. That rings true on the resale market. The initial owner enjoyed the benefits of ownership at a higher price. It is the second owner that enjoys the same benefits for a lower purchase price. It's like having your cake and eating it too. Many people consider it "the best thing they did for their family", isn't that an investment? Q. There is so much on the Internet, how do I know that my money is going for the purchase of the property? A. Always make your purchase from a Licensed Real Estate Broker! If you deal with individual sellers or non-licensed companies you are risking your money. If a problem arises, you are protected by the state when you deal with a state agent. When you write your check make sure it is to the account of a Real Estate Brokerage Escrow, Real Estate Law Escrow or Title Company. Oftentimes, an individual seller does not disclose on the Internet that they are years behind on the maintenance fee's or they may already be in foreclosure at the time they list with an advertising company. Ad companies do not have access to this information nor does it matter to them. Be very wary, they make their money upfront on the ad. Q. How do I know if a timeshare resale property has a free and clear title? A. When you make a purchase through our company you are in good hands. We research every property before we sign the listing agreement. Also the closing service is done with real estate attorneys and title companies. It is a risk free transaction for our Buyer and Seller. Q. Is it necessary to pay an upfront fee when listing a timeshare on the resale market? A. This depends. If you are listing with an advertising company you pay for a service that they claim to provide. However, each state has laws regarding upfront fee's for real estate. Some Brokers charge an Appraisal fee, we do not believe this is a perfect fit for timeshare. Our company procedure requires a CMA (Comparative Market Analysis) which is ideal for owners of the deeded vacation travel package. It will give you the 'probable selling price' of your property in today's market. Call us toll-free for a Free Consultation if you have more questions, 800-256-3219. Q. Is an Appraisal necessary to sell a timeshare? A. No, our Broker will be happy to talk to you about the CMA report. Appraisals are required by banks to lend on various Real Estate transactions. Banks do not lend on timeshare travel vacation weeks. Q. Can we travel with our pets when we vacation at a timeshare resort? A. Yes and no, there are several resorts that are "Pet Friendly". Unless it is "pet friendly" you may not bring your pet to the resort. You can use the power of your exchange and stay in these resorts. Contact us for a list of pet friendly resorts. Q. I understand timeshares are the same size as a condominium? A. Timeshare accommodations vary in size, as small as a hotel room and as large as a house. Timeshares are generally classified as 'Condominium's' and 'Residential' property. You can purchase a studio, one bedroom, 2 bedroom's, three bedroom's, 4 bedroom's or even houses. With the new point system you can also stay in major hotel's such as the Marriott, Hilton, Wyndham, Starwood and the Holiday Inn. Think about it, not all travel destinations have resorts, like Chicago for instance. |
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