Determining timeshare value can be similar to the process of estimating the value of real estate, but with several differences that are important to keep in mind. While timeshares are often described as real estate at the resort sales table, the reality is that they operate as a far different product than full ownership homes or even vacation homes.
Public Records Search
When estimating the value of your timeshare, you can try doing a public records search in the town or county in which the resort is located. Because the closing process for timeshare transactions may be regulated by local or state regulatory agencies, you may be able to see the prices for which other timeshare resales at your resort have sold, depending on the type of ownership you own. This would primarily involve deeded ownership, since the deed would need to be transferred into the name of the new owner and processed in a manner similar to that of traditional real estate. Points ownership can be a very different matter, especially if the points are held in trust and are not deeded in the traditional sense.
Much the same way online advertising companies have emerged to sell residential property, there are online advertising companies specializing in promoting timeshares for sale. You may be able to estimate timeshare value by reviewing the ads on these websites to see what other sellers at your resort are asking for their ownership. These sites can be an effective way to find buyers, so ask for the number of people visiting a site to help gauge their effectiveness.
Real Estate Brokers
There are licensed real estate brokerage companies that are specialists in the timeshare industry. Operating very similar to traditional real estate companies, they can take listings, price properties, handle purchase and sale agreements and take a commission after the sale of a timeshare.
Unlike traditional real estate, a timeshare appraisal is not necessary and be very careful of anyone trying to charge you a fee for an appraisal. Such appraisals are virtually impossible due to the complex nature of the timeshare product.
Contacting the Resort
Unlike residential real estate, you can try contacting the resort to see if they can give you an idea of your timeshare’s worth. Keep in mind that in many states such as Florida, regulations prohibit anyone other than a licensed real estate agent to provide a definitive price or even a narrowed range of prices for your timeshare. Also – it is in the resort’s best interest to tell you resale prices that may be inflated to support the new sale prices on offer at a resort
Always remember that timeshare is a use product, which means the cost of owning a timeshare is more comparable to your yearly vacation spend rather than the cost of a home. As such, timeshares almost always depreciate in price, much like other use products such as cars or boats.
Essential vs Luxury
Homes are an essential purchase – everyone needs a place to live. Timeshares, on the other hand, are more of a luxury vacation product. This makes value proposition comparisons between the two extremely difficult.