Last updated 2026-07-25
TL;DR
A timeshare gives you the right to use a vacation property for a set period each year (or points to book stays), not full ownership of real estate you can easily resell. Average purchase price is roughly $24,140, and average annual maintenance fees run about $1,260, according to ARDA industry data. Fees typically rise every year, and resale value is close to zero for most contracts.
How do timeshares actually work?
A timeshare splits the use of a vacation property among many buyers, so each owner gets a slice of time (a week, a set of points, or a rotating season) instead of owning the whole unit. You're buying the right to use a place, not a house you can walk away with equity from. There are two basic structures. A fixed-week or deeded timeshare gives you a specific week (or float week within a season) at a specific resort, often recorded as a real property interest at the county level. A points-based system, which is how most large chains sell now, gives you an annual allotment of points you spend booking stays across a network of resorts, with pricing that varies by season, unit size, and location. Most contracts are sold as "right-to-use" agreements with an end date, often 20 to 99 years, rather than a deed you own forever. Either way, you're contractually obligated to pay annual maintenance fees and, periodically, special assessments for repairs or renovations, regardless of whether you use the resort that year. The sales process itself is worth understanding, because it shapes the cost. Timeshare presentations are built around high-pressure, same-day-decision sales tactics: free gifts, discounted resort stays, and multi-hour tours that end with a "today-only" price. Federal rules require timeshare sellers to give buyers specific disclosures. The FTC enforces truth-in-advertising and disclosure standards on timeshare marketing under the FTC Act, and its consumer guidance on vacation and timeshare plans warns buyers who feel rushed into signing to slow down before committing to anything [1].
How much is a timeshare? How much do timeshares cost?
| Upfront purchase price | $16,000 - $23,000+ (avg. ~$24,140) | Varies by brand, unit size, points allotment [2] | |
|---|---|---|---|
| Annual maintenance fee | $1,000 - $1,400+ (avg. ~$1,260) | Billed yearly, rises most years [2] | |
| Special assessments | $500 - $5,000+ per event | Charged for major repairs, storm damage, renovations | |
| Financing interest | 12% - 18%+ APR | Developer financing is common and expensive | |
| Resale value | Often $0 - $1 | Secondary market is flooded; many owners pay to give theirs away | Special assessments are the cost that catches people off guard. They're not optional. They're not predictable, either. A resort board can vote a special assessment for a new roof, hurricane damage, or a lobby renovation, and owners get a bill, sometimes for several thousand dollars, with little warning and no easy way to opt out short of not paying (which triggers late fees, collections, and eventually foreclosure on the timeshare interest). Financing makes the real cost worse. Developers routinely offer in-house financing at rates well above a typical mortgage or even a credit card cash-advance rate; 12% to 18% APR is common in the industry, and buyers who finance the full purchase price can end up paying close to double the sticker price by the time the loan is paid off. |
The average timeshare buyer pays about $24,140 upfront, according to the American Resort Development Association (ARDA), the timeshare industry's own trade group, in its 2023 State of the Vacation Timeshare Industry report [2]. Average annual maintenance fees sit around $1,260, and that number has climbed steadily for years, more than with general inflation but often faster than it. Here's a rough breakdown of what owners are actually paying, based on industry-reported averages and what shows up in resale and owner-complaint data: | Cost type | Typical range | Notes |
Are timeshares scams?
The timeshare product itself is legal in every state, so "scam" isn't quite the right word for the ownership structure. But the sales tactics and the resale/exit industry around timeshares are loaded with practices regulators call deceptive, and the exit side in particular attracts real fraud. The FTC has brought enforcement actions against timeshare exit companies. In one case, the agency and the state of Missouri sued a group of timeshare exit and transfer companies operating as Timeshare Termination Team and related entities, alleging they took large upfront fees from consumers while failing to cancel their timeshare contracts as promised [3]. State attorneys general have sued or issued formal warnings against timeshare developers and exit companies alike; the Florida Attorney General's office accepts and investigates consumer complaints specifically because Florida has such a high concentration of resorts and reported complaints. So the honest answer: the ownership product is a real, legal, regulated product that is a bad financial deal for most buyers who intend to resell or exit quickly. The exit industry sitting around it is where outright scams are common. Anyone offering a promised or assured exit for a large upfront fee, especially one requiring payment before any work is done, should be treated with real suspicion. See our timeshare exit companies guide for how to vet a company before paying anyone.
How to get out of a timeshare: what are the real options?
There are basically four paths out, and they cost wildly different amounts of money and time. None of them is certain to work, and anyone who tells you otherwise is selling you something. Rescission (cancel within your state's window). Every state gives new timeshare buyers a right to cancel for a short period after signing, no questions asked, without penalty. This is by far the cheapest and fastest exit, but the window is short (often measured in days, not weeks) and varies by state law, so confirm your state's rescission window before assuming you have time. Miss it, and you're a full owner subject to the contract. Deed-back or surrender program. Some developers and resort HOAs run their own deed-back (also called "deedback" or surrender) programs that let owners return the deed if the account is current on fees and the timeshare is paid off. These programs aren't required by law in most states and acceptance is at the resort's discretion, but they're usually free or low-cost compared to hiring an exit company. Ask your resort's owner services department directly whether one exists before paying anyone. Selling on the resale market. You can list and sell a timeshare yourself or through a licensed resale broker, but resale prices are often near zero; ARDA and consumer advocates have long noted that timeshares are not an investment and rarely appreciate [2]. Selling clears you of future obligations if it closes, but many owners find no buyers even at $1. Hiring an exit company or attorney. Paid exit firms range from legitimate contract-and-negotiation services to outright scams. Legitimate ones typically work on a fee-for-service or flat-fee basis and are transparent about what they will and won't promise (nobody can promise a developer will cancel a valid contract). This is the most expensive and most scam-prone path, so vetting matters enormously. For a full walkthrough of each path, see how to get out of a timeshare and timeshare cancellation.
How do you get out of a timeshare during the rescission period?
If you're still inside your state's rescission window, this is the cleanest exit available, and you should not pay anyone to do it for you. Every state's timeshare or real estate statute spells out a specific cancellation procedure, and following it exactly matters. The general steps: put your cancellation in writing (don't rely on a phone call), reference the contract date and the statute giving you the right to cancel, and send it by a method that creates proof of delivery, such as certified mail with return receipt, to the exact address named in your contract for cancellation notices. Keep copies of everything. States set different windows and rules. Florida gives buyers 10 calendar days after execution of the contract, or after receiving the last document required to be delivered, to cancel by written notice, under its timeshare statute [4]. California's timeshare law similarly sets a cancellation period defined in its Vacation Ownership and Timeshare Act, running until midnight of the seventh calendar day following execution of the contract or receipt of the public report, whichever is later [5]. Because the count of days, what counts as "day one," and delivery requirements differ by state, don't assume the number you saw for a friend's Florida contract applies to your Nevada or South Carolina purchase. Check your specific contract and your state's statute, and see rescission-by-state resources for a state-by-state starting point. Once the window closes, rescission is off the table and you move into the harder categories above: deed-back, resale, or a paid exit path.
How to sell a timeshare (and what it actually costs)
Selling is legal and can work, but go in with realistic expectations about price and timeline. The secondary market for timeshares is oversaturated; ARDA's own industry data and years of consumer-advocate reporting confirm that most timeshares resell for a small fraction of the original price, and many list for $1 just to transfer the deed and its fee obligations off the original owner [2]. Options for selling: list through a licensed timeshare resale broker (look for one who charges no large upfront fee and instead takes a commission on a completed sale), sell peer-to-peer through owner forums and marketplaces specific to your resort brand, or check whether your resort or HOA runs a broker referral or in-house resale program. Watch for resale scams specifically. A common fraud pattern: someone calls claiming to have a "buyer already lined up" for your timeshare and asks for an upfront fee to "process" the sale, then disappears. The FTC and Missouri's 2021 case against timeshare exit and transfer operators described this same upfront-fee pattern, this time aimed at owners trying to get rid of their contracts through supposed transfer or resale services [3]. Legitimate brokers get paid when the sale closes, not before. If your goal is simply to stop paying, understand that a sale that doesn't close, or a "giveaway" that isn't properly recorded with the resort and county, does not end your legal obligation for fees. The deed transfer has to be accepted and recorded, or you're still the owner of record.
How to get rid of a timeshare when nobody will take it
This is the situation a lot of owners, especially those who inherited a timeshare, end up in: the resale market is dead, the resort won't take a deed-back, and the fees keep coming. There isn't a magic answer, but there are real, non-scam paths worth trying in order. First, call the resort's owner services or homeowners' association office directly and ask, in plain terms, whether they have a surrender, deed-back, or "exit" program, even an informal one. Many larger chains created these programs after years of owner complaints and regulatory pressure; acceptance criteria (fees current, no liens, sometimes an exit fee of a few hundred dollars) vary by resort. Second, if you inherited the timeshare through probate, talk to the estate's attorney before assuming you're stuck. Depending on how the estate is handled and your state's law, heirs sometimes can disclaim an inherited interest rather than accept it, though the rules and deadlines for disclaiming an inheritance are technical and state-specific, so this needs a probate attorney, not a general timeshare exit company. Third, if you're evaluating a paid exit company because the first two options failed, check them against your state attorney general's consumer complaint database before paying anything, and never pay a large fee entirely upfront with no defined deliverable or timeline. The FTC's own enforcement history is direct on this pattern: the agency and Missouri sued exit companies specifically for taking large upfront fees while doing little or nothing to actually cancel the contract [3]. What we don't recommend: simply stopping payment on fees you contractually owe while you "figure it out." Unpaid maintenance fees accrue interest and late penalties, can lead to collections activity, and can result in foreclosure of the timeshare interest, which can also hurt your credit. If you're genuinely unable to pay, that's a conversation to have directly with the resort's owner services department about hardship options, not a reason to just stop responding.
Why do maintenance fees keep going up?
Maintenance fees fund the resort's actual operating costs: staffing, utilities, landscaping, insurance, and a reserve fund for future repairs and replacements. Those costs go up with general inflation, but timeshare fee increases have often outpaced it, partly because reserve funds were historically underfunded at many resorts and are now being caught up through steady annual hikes. Insurance is a growing piece of the pressure, especially at coastal and hurricane-prone resorts. Florida's property insurance market has been under acute stress for years. Florida's Office of Insurance Regulation reported in its 2023 Property Insurance Stability Report that the state's homeowners multi-peril line ran a combined ratio well above 100% in several recent years, meaning insurers paid out more in claims and expenses than they collected in premiums, a pressure that pushes rates up statewide, including at coastal resort properties covered under master insurance policies [6]. Special assessments are the other lever. When the reserve fund isn't enough to cover a major repair (a new roof, storm damage, elevator replacement), the HOA board votes a special assessment and every owner gets billed their share, on top of the regular annual fee. There's no cap on this in most contracts and no way for an individual owner to opt out short of not paying, which then triggers penalties. If rising fees are the main reason you're considering an exit, it helps to separate the two problems: a fee increase you can technically still afford but resent, versus fees that have become genuinely unaffordable. The exit calculus, and the case for or against paying for outside help, differs a lot between those two situations. Our maintenance-fees coverage breaks down typical fee structures by resort brand and region.
How do points-based timeshares change the cost picture?
Points systems (used by most major chains sold in the last 15-20 years) add flexibility but also add cost complexity that fixed-week owners don't deal with. You buy a block of points instead of a specific week, and you spend points to book stays, with the point cost of a stay varying by resort, season, room size, and even day of the week. The catch: point costs inside these systems get adjusted by the operator over time, sometimes meaning the same annual point allotment books fewer nights than it used to. You're also still paying annual maintenance fees tied to your point total, and those fees rise the same way fixed-week fees do. Points also make resale trickier. A points contract's value depends heavily on which club or network it belongs to and whether that network still exists in its current form; some owners have found their points program restructured or their external exchange options reduced after purchase, with little recourse. If you're comparing a points contract exit to a fixed-week exit, the mechanics (rescission window, deed-back eligibility, resale reality) are broadly similar, but read your specific contract's transfer and surrender clauses closely. They differ by brand.
Timeshare cost comparison: purchase price vs. ongoing fees over time
| Year 1 | $24,140 | $1,260 | |
|---|---|---|---|
| Year 5 | $24,140 | $6,300 | |
| Year 10 | $24,140 | $12,600 | |
| Year 20 | $24,140 | $25,200 | This table holds the annual fee flat for simplicity; in reality, fees typically rise most years, so the 20-year total is a conservative floor, not a realistic ceiling. By year 20, many owners have paid more in cumulative maintenance fees than they paid to buy the timeshare in the first place, with a resale value that's still close to zero. That math is the honest core of why timeshares are a poor investment vehicle even when the vacations themselves are enjoyed and used every year: you're paying real money annually for a product that, unlike a mortgage, builds no equity you can extract later. |
It helps to see the two cost buckets side by side, because the sticker price is not the real cost. Below is a simplified illustration using ARDA's reported averages [2], not a projection for any specific resort or contract. | Year | Cumulative purchase cost | Cumulative maintenance fees (avg. $1,260/yr, no increase assumed) |
What should I actually do if I'm stuck in a timeshare I regret?
Start by figuring out exactly where you stand: still inside your rescission window, or fully vested as an owner. That single fact determines almost everything else about your options and their cost. If you're still inside the window, cancel in writing today, using your contract's named notice address and a delivery method that proves receipt. Don't call an exit company first; you don't need one for a rescission that's still open. If the window's closed, work the free and low-cost options before paying anyone: call the resort about a deed-back or surrender program, check current resale listings for comparable units at your resort to gauge realistic value, and talk to a probate attorney if the timeshare came through an inheritance. Keep paying your fees while you sort this out; letting the account go delinquent creates a separate, worse problem (collections, credit damage, potential foreclosure) on top of the one you're trying to solve. If you decide a paid exit path makes sense for your situation, get everything in writing before paying: exactly what the company will do, the timeline, and what happens if the exit doesn't succeed. Check the company against your state attorney general's consumer complaint records first. ExitHonest built a $149 one-time Timeshare Exit Kit for owners who want a structured, DIY starting point (contract review checklist, state-specific rescission and deed-back research, and template letters) before committing to a much larger paid-service fee; you can build one at [/exit-kit-builder]. It's not a promise of any outcome (nobody can honestly offer that), just a way to get organized before you spend real money.
Frequently asked questions
How much is a timeshare?
The average upfront purchase price is about $24,140, according to ARDA's 2023 State of the Vacation Timeshare Industry report. Prices vary a lot by brand, location, unit size, and points allotment; smaller or older resale contracts can run far less, while new points packages at major chains often cost more than the average.
How much do timeshares cost per year?
Average annual maintenance fees run about $1,260, per ARDA industry data, and they typically increase most years. On top of that, owners can face special assessments of $500 to several thousand dollars when a resort needs major repairs, storm recovery, or renovation work, billed separately from the regular annual fee.
Are timeshares scams?
The ownership product itself is legal and regulated, so it isn't a scam in the legal sense, but the sales process is high-pressure and the resale/exit industry around it is loaded with fraud. The FTC and the state of Missouri have sued timeshare exit companies accused of charging large upfront fees and failing to deliver on cancellation promises.
How do I get out of a timeshare?
Check whether you're still inside your state's rescission window first; that's the fastest, cheapest exit. If it's closed, ask your resort about a deed-back or surrender program, try the resale market, or consult a vetted exit company or attorney. Never pay a large upfront fee without a written, specific deliverable and timeline.
How do you get out of a timeshare contract after the rescission period ends?
You typically have three remaining paths: a deed-back or surrender program run by the resort (if one exists and your account is current), a resale through a broker or the owner market, or a paid exit service. Keep paying fees while you pursue any of these; stopping payment creates collections and credit problems separate from the exit itself.
How do I sell a timeshare?
List with a licensed timeshare resale broker who charges commission on a closed sale, not a large fee upfront, or sell peer-to-peer through resort-specific owner forums. Set realistic price expectations; most timeshares resell for a small fraction of purchase price, and many owners end up selling for $1 just to transfer the fee obligation.
How do I get rid of a timeshare I inherited?
Talk to the estate's probate attorney before assuming you're stuck; depending on your state's law and how the estate was handled, heirs sometimes can disclaim an inherited interest. If you've already accepted it, the same options apply: check for a deed-back program, try resale, or evaluate a vetted exit service.
What is the average cost of a timeshare?
ARDA's 2023 industry report puts average upfront purchase price at roughly $24,140 and average annual maintenance fees at about $1,260. Both figures are averages across many resort brands and unit types, so any individual contract could run well above or below those numbers.
Can I cancel a timeshare contract after signing?
Yes, if you're still inside your state's rescission window, which is short (often just days) and defined by state statute, not federal law. Cancel in writing, reference the statute, and send it to the exact notice address in your contract using a method that proves delivery, like certified mail.
What happens if I just stop paying my timeshare fees?
Unpaid fees accrue interest and late penalties, the account goes to collections, and the resort can eventually foreclose on the timeshare interest, which can damage your credit. This doesn't erase what you owe up to that point. If you can't afford fees, contact the resort's owner services about hardship options instead of going silent.
Is a timeshare a good investment?
No. Timeshares are a prepaid vacation product, not an investment; they don't build equity, and resale values are typically near zero. ARDA's own industry data and years of consumer-advocate reporting confirm most timeshares resell for a small fraction of what owners originally paid.
How do points-based timeshares work compared to a fixed week?
A fixed-week timeshare gives you a specific week (or float week) at one resort; a points system gives you an annual point allotment you spend booking stays across a network of resorts, with cost varying by season and room size. Points add flexibility but also complexity, since the operator can adjust point pricing over time.
Sources
- Federal Trade Commission, "Timeshares and Vacation Plans" consumer guidance: FTC guidance on required disclosures and cancellation notices in timeshare sales
- American Resort Development Association (ARDA), State of the Vacation Timeshare Industry 2023: Average timeshare purchase price (~$24,140) and average annual maintenance fee (~$1,260)
- Federal Trade Commission and State of Missouri v. Timeshare Termination Team et al. (FTC case materials): FTC and Missouri enforcement action against timeshare exit/transfer companies accused of charging upfront fees and failing to cancel contracts
- Florida Statutes Section 721.10, Cancellation of contract: Florida sets a 10-calendar-day written-notice cancellation period for timeshare purchases under state statute
- California Business and Professions Code Section 11238, Cancellation of contract: California law sets a seven-calendar-day cancellation period for timeshare contracts
- Florida Office of Insurance Regulation, 2023 Property Insurance Stability Report: Florida's homeowners insurance line has run combined ratios above 100% in recent years, contributing to rising property insurance costs at resorts