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What is Timeshare Value Based on?

Casey Kennedy
Casey Kennedy

A timeshare is a real estate purchase in which an individual buys a share in a piece of property rather than paying the full price for ownership. This share allows the person to use the property for a certain week or period of time each year. The timeshare value is based on the desirability of the week, size of the suite, amenities and property location.

To help determine the timeshare value, a point system is often used. The higher the number, the more desirable the property and the greater the timeshare value. Some companies may also use a color system to indicate the most popular weeks or months. A red week or month may indicate that the property is highly sought after, while a blue week or month may signify that there is less demand during that time.

Timeshare values may depend upon the location of the property.
Timeshare values may depend upon the location of the property.

When a buyer purchases a timeshare, he may choose a property that is either deeded or non-deeded. If the property is considered deeded, it may then be passed on to the owner’s heirs. When it is non-deeded, the buyer purchases the property for a certain amount of time, but may ultimately only have ownership of the property for a certain number of years. The timeshare value of a deeded property is typically considered higher than that of a non-deeded property, regardless of its week.

There are several ways to purchase timeshares. The traditional way is to buy a fixed week for a particular location. Since the weeks are numbered from one to 52, this means that if the person buys a share of week 26 at a property in the US state of Florida, he will then have access to the same place at the exact same time each year. In more recent years, however, timeshare developers have started selling the points for an amount of time instead of a particular place. A buyer may then use these points to travel to any of several resorts that the timeshare company owns. He may also trade these points with a timeshare exchange company if he wants to visit a comparable resort at a different location.

A timeshare exchange company is an organization that acts independently from the timeshare developers. For a fee, they will arrange for owners to be able to trade the points from their timeshare for another week or location. Timeshare exchange companies allow owners to change a week or location without having to actually buy or sell their individual timeshare.

Buyers may also choose to purchase from an existing timeshare owner. This type of timeshare is called a timeshare resale. Many owners are willing to sell their timeshare for a price that is considerably lower than what they paid. This can be an adequate way for a buyer to purchase a timeshare without paying retail cost to the timeshare developer.

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    • Timeshare values may depend upon the location of the property.
      By: chasingmoments
      Timeshare values may depend upon the location of the property.