Why a Timeshare Appraisal May Be an Unnecessary Expense
Tuesday, May 25, 2010
When someone tells you that you need a timeshare appraisal in order to buy or sell timeshare, think twice.
Many people will unknowingly pay for a timeshare appraisal as part of their timeshare transaction because they assume it is necessary—after all, you pay for an appraisal as part of a home sale, so why not one for timeshare sales? The answer is very simple when you think it through.
When you buy a home, you pay the price the price you are personally willing to pay for that home—the true market value. But if you finance the home, your lender won’t simply trust the buyer and seller to have settled on the appropriate price. The lender will require that you hire a professional appraiser to assess the authentic value of the home so that the lender knows it is not lending you more money than the home is actually worth.
The home mortgage lender wants to see that it can get its money back on the home it holds as collateral if you default on the loan. Barring an economic freefall in the housing market (such as we have seen in the past few years), a home appraisal protects the lender from loss.
But who buys timeshare with a home mortgage? The lenders who loan money to buy timeshare typically do so through consumer loans, which are based on the borrower’s good credit history, not on mortgage loans that hold property as collateral against borrower default. When there is no lender to require a timeshare appraisal, what value would getting that appraisal serve either the timeshare seller or the timeshare buyer?
Timeshare Appraisal, the Timeshare Sales Expense You Don’t Need
Timeshare sales are based on market value—that’s the price consumers are generally willing to pay to buy timeshare of a given size, location, and season. When you want to know the market value of your timeshare, click on market value survey and Sell My Timeshare NOW will provide this information to you at NO COST.
And doesn’t knowing this make you question why a timeshare sales company might ever require you to pay for a timeshare appraisal when no lender is requiring it? Unfortunately, timeshare appraisals can be add-on or hidden costs that some timeshare sales and timeshare resales companies use unethically to pad their profits. Before you pay for a timeshare appraisal, make sure you understand why it is required for your timeshare sales transaction and who will benefit by it.