Getting a good deal on a time share -- Page 2
By Dana Dratch • Bankrate.com

Another part of evaluating a good deal: Separating the horse from the horse manure. Forget the investment spiel. A smart buyer doesn't look at a time share as an investment. Enthusiastic time-share owners enjoy the style of a time-share vacation: the idea of having a little more space to spread out, the comfort of going to the same place regularly and the option of visiting different locations.

To see if the deal can save you some money, compare prices to a regular vacation in the same area, says Chris Farrell, author of "Right on the Money!" Be sure to add in the purchase price, along with all the ongoing fees and charges. Then ask, "What would it cost to go once a year to a comparable resort for 10 years?"

Also, investigate what else might be going on in that area and the industry in general, Farrell advises. "You have a market that is subject to all the things you worry about with vacation spots, particularly overbuilding," he says.

Who's in charge?
In addition, some shoppers feel better if there's a major name behind the property. "Buy a brand name," says Rogers, a 10-year time-share owner. "That takes a lot of the worry out of it."

And as anyone who's lived in an apartment or condo knows, management is important. What's the management company like and what's its history? Does it have a reputation for raising fees and letting maintenance work slide? Or does it do a first-rate job with this and other properties?

Once you've decided you're serious, ask the company to see documents on repair funds, as well as a history of the fees it has charged. If they balk, get the current owner to request them for you.

Decide what part of the time share appeals to you (travel or this particular property), and keep that in mind while you're dealing. If your aim is to use your purchase as a bargaining chip to trade for time in other properties, you want an attractive location, preferably during a peak season to give you the most leverage. When you talk to other owners, ask how tough it is to get your reservations or trade for other accommodations. And if you want to trade, is there a fee?

Another thing to check: Will the resale include trading privileges in one of the two big time-share exchange networks, RCI or Interval International? If not, can the option be purchased separately?

If you want to visit one particular property regularly, think about when you are most likely to vacation. Same time every year or do you want to maintain some flexibility?

"Is your interval guaranteed or do you get the right to call and make a reservation?" says Perkins. "Ask if there are any flaws in the unit."

Also ask why the seller wants to sell. You might not get the truth, but the answer, along with what you glean from other guests, might give you some insight that will help with your buying decision.

Are you buying an actual deed or a certificate of use? A deed tends to offer more security, according to several experts.

"If you can buy a deeded interval at a good price, it probably means you can enjoy it for a while and resell it without taking much of a hit," says Perkins. "Whereas with the others, it's essentially for your lifetime or a fixed duration."

A deed also offers more of a guarantee that you'll get something back if the property goes under, says Irwin. With most certificates of use, you are merely buying the right to use the property, almost like joining a club. If the property goes out of business (and there's no time share to visit) chances are your money just disappears.

Break out the magnifying class
One unfortunate fact: The time-share industry is rife with fraud, so you need to look out for yourself and your money.

First, be sure to use a closing agent who has plenty of time-share experience. "Make sure they've been in the business and know what they are doing," says Rogers. "Check them out."

When it comes to understanding what's in the contract, the onus is definitely on you. And if it's not in the contract, it doesn't count. Verbal assurances mean nothing. "The documents rule the agreement," says Irwin.

And the closing table should not be the first time you see the contracts. You want to have these far in advance. "Anybody selling a time share should be willing to fax you or mail you all of the fine print," says Perkins.

If you're not a lawyer or real estate agent, it may pay to spend a few dollars on a pro to wade through all that fine print. A broker or closing attorney assisting with your deal will be working for both you and the seller. So it's smart to talk to someone who has solely your interests in mind to make sure that you are getting exactly what you expect from the property, the contract and all the information you've collected.

If you don't have a lawyer look over what you're signing, "you're asking for trouble," says Farrell.

And determine just how malleable that contract is. Is the management or development company free to change the terms after you've purchased? What control do you have? Sometimes the big factor isn't the price of the time share but your ongoing financial obligation to the property.

Determine that the owners have the right to sell everything they are promising. Sometimes the original owners don't understand exactly what it is that they've purchased. Other times, they may have traded certain future blocks of time at the property and forgotten about it. Have a professional check to ensure that you will be starting with a clean slate.

And if you see something in the paperwork you don't like, "make a counteroffer," says Perkins. "It's that kind of marketplace. There is some real room for negotiation on either price or conditions."

Dana Dratch is a freelance writer based in Atlanta.