Timeshare Appraisal Value
One of the most confusing aspects of timeshare ownership is the need for a timeshare appraisal value when considering the resale of your ownership. If you have owned for any length of time, by now you are aware of the complex nature of the industry. Ownership options can be as diverse as the geographical locations of resorts, so sellers understand the need to do their homework when looking to sell.
Do You Need to Pay?
The real issue is one of cost or, more specifically, the need to pay for a timeshare appraisal when determining the value of your ownership. This issue is debated constantly but the problem is that companies have sprung up in the past which have charged excessive fees for such appraisals when, in actual fact, such advice can be obtained for free from licensed timeshare brokers. In some states such as South Carolina, companies are legally prohibited from charging appraisal fees in relation to the resale of a timeshare (South Carolina Code of Laws, Chapter 32, Article 1, Title 27).
This is where timeshares are very different from traditional real estate, where an appraisal is often required in relation to obtaining a loan to purchase a home. Consumers are so conditioned to request, and pay for, an appraisal that it almost becomes a given to obtain one. However, the money you may pay to acquire your timeshare appraisal value could be the money you should be paying to advertise your ownership for sale, so you don’t want to double your costs if it is not necessary.
Where to Begin?
Because of the lack of comps when it comes to timeshares and the various forms of the product, accurate appraisals are a long shot at best. So you are best to start assessing value in one of two ways:
- Advertising Companies – there are a few legitimate companies with high online traffic designed to connect sellers with buyers. Because of the number of sellers advertising their products, you can go to one of these outlets, search for your resort and see what other sellers are asking for their timeshares. Some companies may have calculators on their websites that can help you find the average asking price on those sites for your unit.
- Licensed Brokers – these are licensed agents that can help you assess a starting point for pricing your ownership. Because they are licensed in their respective states, they operate under real estate law and are able to give you specifics.
Even if you begin with a brokerage and they are unable to help you sell if, for instance, the potential commission is not within their pricing structure, you are still in a solid position to competitively advertise your timeshare for sale online. Remember that all timeshares have worth – it is just about matching the asking price with what a buyer is willing to pay.