How much could you sell your timeshare for?
What is your timeshare worth? The answer to those questions depends on several things.
Do you own a timeshare that is available every year or every other year? How high are your maintenance fees? Are you facing a special assessment fee? Where is your “home resort” located?
Think of supply and demand. If what you own is in an overbuilt area then you may get less. If what you own is in a building controlled area you may fare better. Also, two bedroom units are in great demand. That will also influence your sales price.
When timeshare owners decide to sell, they frequently discover they have a distorted perception of the value of their property. Even though, most timeshare sale documents include statements such as “the value of a timeshare is in the use” that point is seldom driven home at the new sales table.
Obtaining an appraisal on a timeshare is also a tricky proposition. Comparable sales data for timeshares are not the same a sales data for residential homes. You can’t compare the two processes. When a home is sold it is almost always tracked through a local MLS. So the data is easily available to create a brokers opinion on price or value.
Timeshares are most often not sold through MLS listings.
So what is your timeshare worth? As a rule of thumb anywhere from 50% to 75% of today’s resort pricing. Buyers on the timeshare resale market drive the price. They want a discount compared to what they would have to pay at the timeshare resort. Plus, “today’s resort pricing” is a moving target. Prices go up and down depending on how hard the sales people close you on a sale.
The key to pricing your timeshare is to set the price so it will sell. Don’t just play with the notion of selling it, set the price aggressively. Remember, price the property below developer pricing because you are now competing with the developer for the family that wants to enjoy years of wonderful vacations as you hopefully have. Today, with the rising cost of development, the ever increasing new sales price, and the rapidly growing second market, more and more developers are dealing in timeshare resales. Usually their involvement is in right of first refusal buy backs and not a resale program for their owners.
Wherever the price ends up, it is worth selling your timeshare if you are not using it. Paying annual maintenance fees for something you never use turns a timeshare into something worse than a depreciating asset.
Sell it. You’ll be glad you did.