Wednesday, June 8, 2005
Timeshares are not traditional real estate and do not need a timeshare appraisal. Here are some things to consider when determining the value of your timeshare.
In the public mind, timeshare is often viewed as being no different from traditional real estate. While some similarities exist, a timeshare is a different item altogether.
Many people who have sought a way to sell their timeshare have encountered companies which charge an “appraisal fee” for a real estate broker to appraise the property. Assessed at the beginning of the sale process, this is often a high cost, and usually followed by a commission on the back end of the sale.
These days, many people still feel that a licensed real estate broker is a necessary part of a timeshare resale transaction. For those people, we would like to highlight a few facts:
– It is not necessary for a timeshare property to undergo an appraisal by a licensed real estate broker. If you bought your timeshare from a developer, your property was never appraised. There is no reason to pay for an appraisal now.
-An estimated 50% of the initial cost of a new timeshare property covers the cost of marketing the timeshare; presenations, gifts, and other special incentives are covered by the initial cost. This is why timeshare resales generally cost about 50% of a resort developer’s original asking price.
-In order for a timeshare appraisal to be official, a broker must be licensed in the state where the timeshare is sold, the state where the timeshare actually is located, and the state where the broker’s office is. If a broker cannot meet any of these criteria, this would tend to detract from the value of the appraisal.
-Paying a commission on the back end of a timeshare transaction creates an incentive for a salesperson to inflate the asking price. Because a commission is a percentage of the sale, certain brokers may set the value of a property disproportionately high in order to increase the value of the commission. A timeshare which is not priced competitively is not likely to sell.
From our Seller FAQ page:
“Many brokers and timeshare resellers unethically insist on the buyer paying upfront for appraisals or a comparative market analysis (CMA). You simply do not need an appraisal or CMA to sell a timeshare. It is not traditional real estate. Your timeshare property was not appraised when you purchased it and does not need to be appraised to sell it now. When speaking with timeshare resellers or brokers, if you are told you need an appraisal or CMA, use extreme caution. The bottom line is if you want to be successful in selling your timeshare property, you need to be priced well under what the resort is selling the same unit and week for.”
If you are interested in finding out the current market value for your property, SellMyTimeshareNOW offers Market Value Surveys for timeshare resales and rentals. This is a service we provide free of charge because we believe that no-one should ever pay for a timeshare appraisal.