Timeshare Appraisals for Estate Disposition

My mother and father purchased time shares at the Embassy Suites Resort in Lake Tahoe (now named Lake Tahoe Vacation Resort). My mom passed away a few months ago and in settling the trusts and estate issues we have been advised that we need an appraisal on the timeshares. First I tried the Lake Tahoe Resort and they do not offer that service, then I tried various real estate appraisers in the Tahoe area and could not find any that did timeshares. This can't be a difficult thing to accomplish. One look at Redweeks listed resales would tell you the fair market value. Could use some help on this.

Steve Berch

stevenb119 states in part: >> This can't be a difficult thing to accomplish. One look at Redweeks listed resales would tell you the fair market value. << ==========================================

First, I'm sorry for your loss.

Surprisingly, an "appraisal" WILL be difficult to accomplish. Unlike in other real estate which has an assessed value of record, that's just simply not the case with a timeshare week, since no "official" value is assigned or available for individual weeks. The overall facility has an assessed property value, of course, but because different weeks (and unit sizes) all have different market values, it's just not as simple as dividing $"X" resort assessed value by "Y" total units, by 52 weeks. Advertised resale listings, whether on RedWeek or anywhere else, are ultimately just "asking" prices, revealing no definitive or informative details on the actual selling (closing) prices.

I'd suggest contacting the resort directly to see if they perhaps have a resale office on site or nearby. If so, there is a licensed real estate broker or agent affiliated with that resale office who might be able to give you some clear guidance on getting a formal document stating estimated value of your particular week, perhaps even in affidavit form. An actual "appraisal" however, may very well prove to be an unattainable objective. Good luck.

It's hard to appraise a timeshare .... even though you can go through the different resale sites, all you see is what a timeshare week is listed for (and many are unrealistically high) .... not actually what a week was sold for as that information is between the seller and buyer (negotiation).

The only statistical way is to check Ebay's final timeshare auctions, however you have to be a member of Ebay to see those.

Okay, I understand what you all are saying. I don't buy the different units, etc. If you buy a floating week of a two bedroom it is what it is. And it would seem to me that sales in fee simple of timeshares have to be recorded and are a matter of public record like any transaction of real estate. I cannot be the only one who has gone through the estate process. If the court says it wants an appraisal, how do you satisfy that requirement? Thanks for the comments so far, I am hoping I will find someone who has been through the process.

Steve Berch

stevenb119 wrote:

Okay, I understand what you all are saying. I don't buy the different units, etc. If you buy a floating week of a two bedroom it is what it is. And it would seem to me that sales in fee simple of timeshares have to be recorded and are a matter of public record like any transaction of real estate. I cannot be the only one who has gone through the estate process. If the court says it wants an appraisal, how do you satisfy that requirement? Thanks for the comments so far, I am hoping I will find someone who has been through the process. Steve Berch

Yes, it's possible to find what a week sold for from the deed department/courthouse where the timeshare is located as it's a matter of public record. Some county records are online, others are not, so you may have to call for any info.

The only problem with this is that timeshare weeks (whether floating for fixed) are so across the board as far as pricing that it might be almost impossible to come up with an appraisal unless you averaged what similar weeks sold for. I don't know if the county would give out this information (averages), but it wouldn't hurt to ask.

stevenb119 quips: >> I don't buy the different units, etc. If you buy a floating week of a two bedroom it is what it is. And it would seem to me that sales in fee simple of timeshares have to be recorded and are a matter of public record like any transaction of real estate.<< ==============================================

Your initial inquiry did NOT specify (or in any other way remotely mention) floating week ownership or unit size. Absent those relevant, critical details, I was merely pointing out that such factors directly influence market value. Prime FIXED weeks in Florida, for example, are worth lots more money than (often use-restricted) floating weeks, even within the exact same resort. 2BR units are always worth lots more than studios or 1BR. But again, your original post provided NONE of those important details or factors. My apologies for not actually being clairvoyant...

Yes, recorded Florida timeshare deeds will indeed reflect selling price. However, the logistical difficulty which you face is in actually finding and retrieving a recent "comparable", since recordings are generally researched by grantor or grantee or date --- not by facility or week. In short, there is quite simply no "easy button" for you to push for an instant answer.

You're welcome; best of luck to you.

I guess I am the one who should apologize for not being specific in my inquiry. I had no idea how muddy the waters were with regards to appraisals on timeshares. I had ASSumed that someone would immediately pop up with "oh yeah I know a guy in Tahoe who appraises timeshares", and that would be the end of it. I guess sometimes one learns only by doing, and in the future I shall be very specific on the details so people aren't guessing. Still the problem exists, how does one satisfy the California Court requirement for an appraisal if n one is to be had?

One possible solution would be to put it up on Redweek and see how many points a possible exchange would net you. This would net you a dollar value per year as to what it is worth per year. 1100 points would be worth $1100. From there you can subtract expenses (maintenance fees). Hopefully you are left with a positive figure. From there multiply by how many years you wish. This would give you a "value" from an independant 3rd party. Values are hard to come by, so I would ask that are you looking to over value or under value it for your purposes? If it is to over value (my moron brother in law who I hate wants it) you could always go with purchase price. If you want to undrvalue it for whatever reason you could go to like properties on sites that re-sale timeshares and compare it to similar units. I believe there is one or two places that will sell your timeshare without asking for comission up front. Ask what you could get...this would be reasonable figure. If they say they can't sell it, value it a dollar. If they can, then use the figure they give you.

stevenb119 wrote:

I guess I am the one who should apologize for not being specific in my inquiry. I had no idea how muddy the waters were with regards to appraisals on timeshares. I had ASSumed that someone would immediately pop up with "oh yeah I know a guy in Tahoe who appraises timeshares", and that would be the end of it. I guess sometimes one learns only by doing, and in the future I shall be very specific on the details so people aren't guessing. Still the problem exists, how does one satisfy the California Court requirement for an appraisal if n one is to be had?

You indicate the timeshare to be appraised is at Lake Tahoe on the California side. I suggest you look in the yellow pages and locate a certified real estate appraiser. I suggest you select an MAI (Member American Institute of Appraisers) because an MAI is qualified to appraise any type of real estate and the estate's timeshare is certainly real estate.

An MAI typically locates comparable sales that qualify as a fair market sale, that is, a sale between a willing buyer and a willing seller both of whom are under no duress to buy or sell and who are aware of the highest and best use of the property. The MAI finds these sales by running the grantor index to deeds and identifys sales of comparable timeshares in the area and especially in the resort in which your timeshare is located. They cull out those that do not meet the fair market value definition (EBay auctions, developer sales, postcard company sales, and family transactions) and use the remaining sales to arrive at an indication of the value.

All probate courts including all in California accept an MAI appraisal. It may cost a little more than you are willing to pay but if you want a valid appraisal that will pass court muster go the MAI route.

There are thousands of high end brands for sale for $1, and do not sale.

They are worthless

Sorry