Current fair market value is the price in which a knowledgeable buyer will purchase an ownership from a well informed seller, based on the current sales of a comparable timeshare interest.
As in real estate, the timeshare market fluctuates in value. This is due to a variety of factors but it will generally come down to supply and demand. The more popular a particular timeshare location is, the more demand there will be. If there is more demand, the supply will decrease due to the influx of buyers. When this happens, sellers might be able to command a higher price, taking advantage of the current desirability.
The price will generally decrease if there is a lack of demand and supply is in excess. When there is an abundance of supply in the market and the price drops, this can be beneficial to the buyer. Whereas a high demand market might be beneficial to the seller.
High demand locations such as Florida and Hawaii can be be much more expensive than other timeshare properties. Although they are in high demand, they still are sold for a fraction of the cost on the resale market compared to the retail market. It’s always wise to understand the difference between the presentation pricing and resale pricing of the timeshare you want to purchase.
If you would like a free consultation about buying timeshares or would like to know more about fair market value, feel free to contact us.