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

[Kevin A. Spellman]

I use the old 2055 report and host the week # along with the fees for the week and described the difference in the weeks. The summer months are the highest priced weeks here in MA. The spring and the fall have the lower prices. The time-shares that I appraise sell between $1,500 and $9,000. The times shares I appraise have deeds. If there is no recorded deed I do not accept the assignment. Most of my assignments are for an estate, not for a re-sale or for a purchase.

 

[Lee Lansford]

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

Steve Baker

The "form" is not the problem.

I have never appraised a time-share interest and if I did acept such an assignment, I would be certain to associate myself with another appraiser who had.

 

[Mike Garrett RAA]

Yes, you could appraise it. Do you want to? I wouldn't, never done one, not competent in property type. I don't think there is an appropriate form.

 

[Couch Potato]

For most timeshares, a general purpose condo form would be suitable for a foundation of the report. It would allow for an appropriate description of the improvements and comparison of fees.

Be sure of what is actually owned. Some timeshares are basically a lease while others are an actual deeded interest in real estate. Before wasting a great deal of effort on finding comparable sales, check the difference between the maintenance fees and the market rent of comparable accommodations. If the rent is less than the maintenance fee, it is likely the timeshare actually has a negative value.

 

[Mike Garrett RAA]

Another thought...Interval Ownership. Different weeks are worth different amounts. I looked at some in the ski resorts here in Colorado. Fall and summer were worth abour half the winter months. Not for the novice...I am afraid.

 

[Restrain]

Look at outside sources. Do a search for offerings for the time share. Be especially careful if it's a Wyndham/Fairfield since they sell "points" as opposed to a specific week. For example, they will sell 80,000 points at $8,000, but you can buy the points equivalent on ebay for less than $500.

I would do a short-form narrative, cutting to the chase, citing the development, the interests being valued, the source of the data being used for the valuation and why it was used. No lengthy valuation analysis is needed, just the minimum. Wouldn't try to push it on a form.