The timeshare industry is worth more than $10 billion. There are more than 1500 timeshare resorts offering over 206,000 units.
Timeshares are a smart investment but it’s hard to gauge how smart that investment really is. You want to know if your timeshare increases in value, especially if you want to resell your timeshare later on.
Do you want to know the answer to what is my timeshare worth?
You’re in luck because all you have to do is read on to learn the answer in this timeshare guide.
How to Determine Timeshare Value
Pick a number, any number. It seems like that’s how people determine the value of a timeshare. The fact is that pricing a timeshare is very subjective.
There isn’t a guidebook that shows you the timeshare value at different resorts. You have to start with what you paid for the timeshare.
If you bought your timeshare from a resort, you’ll need to subtract commissions and fees from the sales price. Those are charges that get rolled into the original purchase price.
Since they’re additional costs, they shouldn’t get included in the numbers to determine the worth of your timeshare.
Look at comps in your timeshare resort. Comps are used to determine real estate values, and you can apply the same methodology to timeshares.
Comps are similar properties. Compare units that sold and are on the market over the last 90 days. If you have a two-bedroom unit, look for other two-bedroom units.
Then take into account if there are features that should add to the price of your timeshare. For example, if you had new appliances installed or if your timeshare unit has a better view, increase your timeshare value.
If you’re comparing your timeshare to a penthouse, then you’ll need to subtract from that comp to find something that’s more appropriate.
Timeshare Tips for Resellers
The first thing that you’ll notice is that the value is less than what you paid for it. You have an emotional attachment to the timeshare, and this is difficult to take.
You probably expected this to increase in value like other real estate deals. Timeshare pricing models work similarly to the car industry.
Brand new cars lose value by the time you drive from the dealer to your home. That’s because those marketing and commission costs get passed to you.
When you’re ready to sell your timeshare, you should work with a reputable sales company. They can confirm your research and determine the timeshare value so it sells quickly.
You’ll end up getting the best timeshare deal and minimizing your losses.
What Is My Timeshare Worth?
There’s not a simple way to answer the question, “What is my timeshare worth?” It takes a lot of research and understanding of the market to determine the value of your timeshare.
It helps to work with a reputable company to resell it and price it accordingly.
Now that you know how to price a timeshare, head over to the Travel section of the blog for more travel tips.