Special care must be taken to understand the timeshare interest and the competitive market in which that interest would sell, according to an article from the Spring 2019 issue of The Appraisal Journal that explores key issues facing appraisers when valuing timeshares.
“Timeshares, Market Value, and the Real Estate Appraisal Process,” by Richard J. Roddewig, MAI, and Charles T. Brigden, MAI, explores key issues in timeshare appraising, including the need to identify the nature of the timeshare interest being appraised and its marketplace, and finding reliable sources of data when closed sale prices are not readily available.
The authors emphasize that timeshares are sold in two distinct marketplaces – a primary marketplace involving resort developers and a secondary marketplace involving individual resale of timeshares. The article explains how and why each marketplace commands significantly different sale prices. Appraisers need to be especially aware of these issues when valuing donations of difficult-to-sell timeshare interests, the authors write.
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