Can you appraise a timeshare? What form should be used?

[SFBaker]

I received an appraisal request from a timeshare owner - they would like their timeshare in Kissimmee FL appraised for tax purposes. It's a fairly large complex and there is a sales office on site that can provide sales comps.

Can I accept this assignment, and if so what form would I use?

Steve Baker

 

[Tim Schneider]

I would not use comps from the sales office, but from the open market. Check eBay, many timeshares sell for $1 plus transfer fee. Most don't even sell for $1. Many times owners would pay to get rid of them.

 

[Pat Butler]

Depends on your state. Oftentimes a time share interest is a personal interest and not a realty one.

 

[ccooper]

We have had several calls over the years here as well. In my market, most are deeded 1/50th interests so I think that would be real estate. When we tried to complete an appraisal, however, we were never able to get good reliable sales data. We didn't trust the sales staff at the project and the local time share re-sale companies are even worse. (I think these guys are just people who didn't have enough ethics to sell at the project....the lowest of the bottom dwellers. In it for the $500 listing fee only.)

I have had 50 phone calls with timeshare owners over the years and have referred them elsewhere. I told them that Century 21 and ReMax both have time share divisions and that maybe they could get a BPO for estate (or whatever) purposes.

I had heard that in FL they had outlawed the $500 listing fee and that many re-sale companies were now charging an "appraisal fee" as part of listing the timeshare for sale. This, I believe, is just an end run on the outlawed listing fee.

 

[ccooper]

p.s. the time share owners have completely understood when I explained to them that we could not trust what the sales office gave us.

 

[VolcanoLvr]

The primary question, as yet unanswered, is "what form to use."

I don't claim to have a precise answer...but would the 'co-op' form be appropriate?

Or would it be better done on one of the 'GP' forms AI and the various software companies have developed?

 

[Ray Miller]

Yes, you can appraise a "Time Share".

What form, I fear this is done as a Nartive Appraisal.

I don't think you are appraising RE in some cases, you are appraising a "Share of Time" for use in an RE Project.

You would need to study the "Time Share Documents" for that Resort or what ever it is called to see who owns the real estate. They may or may not own the real estate.

 

[MBD]

I believe that I time share should only be appraised by a general (CG) appraiser. The reasoning is that residential appraisers appraise 1 to 4 unit properties, and the time share interest is less than 1 unit.

 

[Ray Miller]

We have had several calls over the years here as well. In my market, most are deeded 1/50th interests so I think that would be real estate. When we tried to complete an appraisal, however, we were never able to get good reliable sales data. quote]

The reason most are 1/50 interest is that the resort holds out two weeks of ownership for repair and replacement or they may rent those two weeks out, or use then in there sales program to bring people to the project.

 

[George W Dodd]

Anything with value can be appraised. The question is not what form, but if you can provide a credible opinion of value.