How to determine the current value of your timeshare?

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Whether you are considering selling your timeshare or you simply want to determine the value of a property you plan to keep, there are several different strategies you can use to determine that information for yourself.

The key points you should analyze are:

• What is a good selling price based on the market value?
• If you are leasing, what is the typical market rate to rent for a week or more?

Merely setting a price off the top of your head and hoping for the best is not a good strategy as you may overprice the property and harm your chances of successfully selling or renting it, or you may underprice the property and lose out on potential income. Of course, you also must consider factors like the time of year the property will be offered for sale or rent, since this can significantly impact the potential demand for it.

Most likely, you will need to do a fair amount of research to find this information. A good place to start will be the timeshare marketplace for your property; it will show the fair market value for properties like yours. The timeshare marketplace is a cooperative that gives you all the information you need to know about selling or renting your property; it is not a real estate broker.

The cooperative will collect all the data given out by all advertising sources available for properties listed. Unlike the advertising sources themselves, the cooperative is an unbiased source that has nothing to do with the selling, buying, leasing or closing of these properties. All information about a particular property can be forwarded to the owner of that property, who then answers all inquiries and negotiations.

The advantage of using this service is that there is no broker involved, which means there are no broker fees to contend with. You will submit a form with the required information, which is then subject to approval. You must set the price for the property and handle any property assessments yourself. Again, the cooperative does have access to millions of potential buyers and renters through its marketing, but it is not affiliated with any third parties. It is simply a property listing site.

Of course, if you wish, you can use alternative do-it-yourself timeshare listing companies like RedWeek.com. Unlike with a cooperative, however, this type of service can make it challenging to determine the true fair market value of your property. However, these marketplaces do allow you to scan existing listings to get an idea of the typical asking price for properties like yours. Another valuable resource for performing this type of market research is the website for TUG, or Timeshare Users Group (http://www.tug2.net). This site includes bluebook listings with sales histories for a variety of resort properties.

In addition, you should keep a few facts in mind as you try to determine how much your resort property is worth. First, remember that many timeshare owners simply have no idea how to price their properties, so do not be fooled by what seem to be high asking prices. A typical rule of thumb is that your timeshare will be worth roughly 50 percent of its original purchase price, since much of that original price went towards commissions, fees and other expenses.

Also, as you compare your property with others in an attempt to determine its value, take into consideration not only the obvious factors like the numbers of bedrooms but also those like the property’s distance from the water, its ease of access for travelers and so on. Unfortunately, determining a timeshare’s value is not an exact science. Keeping these points in mind, however, can help you ensure that you offer your property for a fair price.

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Boris Razmiki

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