Fair market value is the estimated value of a timeshare ownership that a knowledgeable and willing buyer would buy from a knowledgeable and willing seller.
Fair market value for timeshares differ greatly based on where and how they are being purchased and sold. Retail and resale will differ in price but also certain properties within the same developer can also command a higher price than others within the same company. On the resale market, popularity and desirability factor into the price of the ownership. If the supply of a specific resort or club is low due to many owners listing their timeshares and the demand is high, that property’s fair market value will likely rise.
The retail timeshare ownerships sold at a presentation will have a higher sticker price than the ownerships that are sold on the resale market even though both are selling the same weeks, rooms and properties as one another, but keep in mind that their fair market value would be exactly the same.
Timeshares also come with yearly maintenance fees. These fees are not reflected in the initial purchase price but must be paid yearly to stay in good standing with the property or company in which the week belongs. Some ownerships will have a high purchase price and a low maintenance fee whereas there can be a lower initial cost but the yearly fees will be higher.
If you have any questions about the fair market value of timeshares, feel free to contact us.
