# Timeshare - Net Worth



## dbottomley (Apr 26, 2013)

We are filling out paperwork for our net worth.  We have owned our timeshare (purchased resale) for less than a year and didn't know if we could include it as part of our net worth.  It is a real estate investment.  

If so, any ideas on getting the value?  Thank you so much for your help!


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## DeniseM (Apr 26, 2013)

Unless you own a prime week at one of the top resorts (Hilton, Hyatt, Westin, DVC) the value will be negligible.   What did you pay for it?

How is it an investment?  You are very unlikely to be able to sell it for more than you paid for it.


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## Janann (Apr 26, 2013)

If you are filling out forms for a will or estate plan, then include it.  Someday someone will need to transfer your ownership or sell it.

If the forms are for a loan application, don't bother.  I look at loan applications for a living, and I can assure you that a lender doesn't care about a timeshare.


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## ronparise (Apr 26, 2013)

If you include a timeshare as an  asset when calculating your net worth, you should also include the maintenance fees as an expense item


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## dbottomley (Apr 26, 2013)

We are actually filling out paperwork for an international adoption.  We own at Wyndham Makai Club Cottages and only paid $25 the timeshare.  I don't know if it is an investment but consider it an asset.  How would I determine its worth?


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## DeniseM (Apr 26, 2013)

dbottomley said:


> We are actually filling out paperwork for an international adoption.  We own at Wyndham Makai Club Cottages and only paid $25 the timeshare.  I don't know if it is an investment but consider it an asset.  How would I determine its worth?



If you paid $25 for it - it's worth $25.


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## VegasBella (Apr 26, 2013)

dbottomley said:


> We are actually filling out paperwork for an international adoption.  We own at Wyndham Makai Club Cottages and only paid $25 the timeshare.  I don't know if it is an investment but consider it an asset.  How would I determine its worth?



More than likely they're just looking for evidence that you pay your bills and can afford a child. No reason to mention the timeshare unless you want to. 

I'm an adoptive mom. Congrats on choosing to adopt. It's a long hard process but it's worth it!


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## l2trade (Apr 26, 2013)

imho, the only place where you should list your timeshare net worth as an asset, is the paperwork to qualify to buy a new one. at the sales presentation, i am not sure if you should list the $25 resale purchase price or the developer retail price. both would be funny...

I doubt you need to list it on adoption papers. If anything, it is a liability and an expense - but so too is renting a hotel for vacation every year. It is great to know this child will have a home with parents who go on famiy vacations! I wish you all the best with the adoption! That is wonderful news! Congrats and best wishes!


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## persia (Apr 27, 2013)

I own Wyndham timeshares (Glacier Canyon, Cypress Palms) so I figure they can be sold to cover the exchange fees and still leave a pile of money that would buy a nice lunch at an Indian Buffet (of course if you are one of those people that tip at Indian Buffets it probably wouldn't cover)... 



dbottomley said:


> We are filling out paperwork for our net worth.  We have owned our timeshare (purchased resale) for less than a year and didn't know if we could include it as part of our net worth.  It is a real estate investment.
> 
> If so, any ideas on getting the value?  Thank you so much for your help!


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## dioxide45 (Apr 27, 2013)

ronparise said:


> If you include a timeshare as an  asset when calculating your net worth, you should also include the maintenance fees as an expense item



However, expenses don't come in to equation when calculating net worth. As long as there are no past due MFs that are debts, then they shouldn't affect net worth.


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## heathpack (Apr 27, 2013)

DeniseM said:


> Unless you own a prime week at one of the top resorts (Hilton, Hyatt, Westin, DVC) the value will be negligible.   What did you pay for it?
> 
> How is it an investment?  You are very unlikely to be able to sell it for more than you paid for it.



Disney is not sold by the week and all contracts have value proportionate to their size.  Value varies with resort and size of contract and in some instances use year.

Few to no Hyatt weeks are giveaways, either.  You do not need to own a prime Hyatt week for it to have significant value.

H


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## DeniseM (Apr 27, 2013)

heathpack said:


> Disney is not sold by the week and all contracts have value proportionate to their size.  Value varies with resort and size of contract and in some instances use year.
> 
> Few to no Hyatt weeks are giveaways, either.  You do not need to own a prime Hyatt week for it to have significant value.
> 
> H



I agree - I was saying that *excluding those systems* most TS's have little or no resale value.


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## heathpack (Apr 27, 2013)

DeniseM said:


> I agree - I was saying that *excluding those systems* most TS's have little or no resale value.



What you actually said is the units with value are the *prime* weeks in those systems.  The point I was making is that you don't need to own a prime week in those systems to have resale value.  In Hyatt of course better weeks have more value, but all (or maybe almost all) weeks have value.  DVC is an entirely different beast.  Not sold by week, but small point contracts roughly correspond to low season weeks in other systems.  Generally speaking, small DVC contracts sell for a slight premium on the resale market.

No biggie, it's just that there's a lot of newbies here who don't necessarily know some of these nuances.

H


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## DeniseM (Apr 27, 2013)

I see what you are saying - I didn't really mean prime "date" - I was using "week" as a generic description of ownership - I will be more specific next time.


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## easyrider (Apr 28, 2013)

dbottomley said:


> We are actually filling out paperwork for an international adoption.  We own at Wyndham Makai Club Cottages and only paid $25 the timeshare.  I don't know if it is an investment but consider it an asset.  How would I determine its worth?





DeniseM said:


> If you paid $25 for it - it's worth $25.



I would ask an accountant how to place this TS in as an asset or if your trying to come up with more assets versus liabilities then I would use the highest value for the timeshare available, not ebay or tug values. To determine the highest value ask the developer what they charged for that week. An international adoption agency might not care about timeshares at all as your not borrowing money.

The TS is only worth $25 if you sell it for $25 on the day that you sell it. As far as Im concerned a TS is worth what ever someone is willing to pay for it. This means you include developer prices as well as ebay prices. While retail TS pricing is subjective because of the circumstances of the seller, developer prices only increase every year.


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## VacationForever (Apr 28, 2013)

easyrider said:


> I would ask an accountant how to place this TS in as an asset or if your trying to come up with more assets versus liabilities then I would use the highest value for the timeshare available, not ebay or tug values. To determine the highest value ask the developer what they charged for that week. An international adoption agency might not care about timeshares at all as your not borrowing money.
> 
> The TS is only worth $25 if you sell it for $25 on the day that you sell it. As far as Im concerned a TS is worth what ever someone is willing to pay for it. This means you include developer prices as well as ebay prices. While retail TS pricing is subjective because of the circumstances of the seller, developer prices only increase every year.



TS is worth what you can sell for.  It is going to be closer to the $25 than developer's price.


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## easyrider (Apr 28, 2013)

sptung said:


> TS is worth what you can sell for.  It is going to be closer to the $25 than developer's price.



I know but what people sell these for, other than the developer, is a called subjective or resale price. The developer is selling at the actual price. Depending on the purpose and how a financial statement is drafted a TS could be listed at developer price.


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## DAman (Apr 28, 2013)

*What about for FAFSA?*

How do you list a timeshare on a FAFSA form for your child's college?  Or do you list it at all?  If you do is there a spot to list m/f's as a liability?  

I have yet to do this but getting close.  My oldest is a junior in high school.


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## Janann (Apr 29, 2013)

I did a google search of FAFSA and timeshare, and it appears that if you search TUG with those two key words, and also www.collegeconfidential.com message boards you will find an answer.


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## ronparise (Apr 29, 2013)

easyrider said:


> I know but what people sell these for, other than the developer, is a called subjective or resale price. The developer is selling at the actual price. Depending on the purpose and how a financial statement is drafted a TS could be listed at developer price.



Oh no...thats exactly backwards

The resale price is the "real" value  The developer price is has nothing to do with value


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## ronparise (Apr 29, 2013)

dioxide45 said:


> However, expenses don't come in to equation when calculating net worth. As long as there are no past due MFs that are debts, then they shouldn't affect net worth.



I knoe the expenses are not part of a net worth calculation, but most of the time if someone wants to see your net worth they also want to see an income and expense statement as well.  Im suggestion that if you try to phony up your net worth with a timeshare valuation, You need to include the expense in any income/expense statement too


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## easyrider (May 1, 2013)

ronparise said:


> Oh no...thats exactly backwards
> 
> The resale price is the "real" value  The developer price is has nothing to do with value



Are you saying a TS has no monetary worth ? Resale value is very subjective when it comes to TS's . If the developer price has nothing to do with value neither does the ebay fire sale price.

http://www.buyatimeshare.com/TimesharesSold.asp
List of recently sold TS's from one reseller.


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## vacationhopeful (May 1, 2013)

easyrider said:


> Are you saying a TS has no monetary worth ? Resale value is very subjective when it comes to TS's . If the developer price has nothing to do with value neither does the ebay fire sale price.
> 
> http://www.buyatimeshare.com/TimesharesSold.asp
> List of recently sold TS's from one reseller.



*Valuation is the price an informed BUYER pays for an item* - not a desperate seller or a con man salesman's inflated price.  It is an arms length buyer who has done their homework -- nothing to do with the seller's cost basis or with "perks".

If the seller chooses to NOT SELL because he wants MORE money -- the valuation is still the PRICE an informed BUYER offered to pay ... until someone does PAY MORE.

So, if someone offers $1 ... that is the price it is valued. If someone 3 days later offers $5, that price has to close at the new price to be valued at $5. I can have an old mink coat - someone offers me $10. I decline with the money in my face. The next person offers me $5 and I accept. They then rescind the offer. Is the item worth $1 or $5? It is worth only $1 --- the lower of the 2 offers which was NOT CLOSED. Similiarily offered items are also valued at the LOWEST price - valuation is always the most conserved (lowest) value.


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## SMHarman (May 1, 2013)

easyrider said:


> Are you saying a TS has no monetary worth ? Resale value is very subjective when it comes to TS's . If the developer price has nothing to do with value neither does the ebay fire sale price.
> 
> http://www.buyatimeshare.com/TimesharesSold.asp
> List of recently sold TS's from one reseller.


The Developer Price and the ebay price could realistically be called the spread of prices for a timeshare.
One is full freight and the other is nearer a distressed asset sale.
Somewhere in the middle (and probably nearer the ebay price) is the price that a non-distressed seller will sell at.


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## ronparise (May 1, 2013)

easyrider said:


> Are you saying a TS has no monetary worth ? Resale value is very subjective when it comes to TS's . If the developer price has nothing to do with value neither does the ebay fire sale price.
> 
> http://www.buyatimeshare.com/TimesharesSold.asp
> List of recently sold TS's from one reseller.



In real estate, market value is where a willing, knowledgeable buyer and a willing knowledgeable seller come together

Im suggesting that in developer sales the buyer dosent know what he's doing
and yes, Im saying that in many cases a timeshare has no monetary worth

Auctions are not fire sales. A well promoted auction that brings a roomfull of buyers together is probably the best measure of market value


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## SMHarman (May 1, 2013)

ronparise said:


> Auctions are not fire sales. A well promoted auction that brings a roomfull of buyers together is probably the best measure of market value


Yes but at TS sale on EBay is not the same as Christies putting together an auction of impressionist art once a year.  It is more like a yard sale.


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## easyrider (May 1, 2013)

ronparise said:


> In real estate, market value is where a willing, knowledgeable buyer and a willing knowledgeable seller come together
> 
> Im suggesting that in developer sales the buyer dosent know what he's doing
> and yes, Im saying that in many cases a timeshare has no monetary worth
> ...



Market value for the developers is full price. The developers sell more TS weeks than all resale weeks put together, imo. This is an objective value. 

Market value for resales are all over the place depending on the reason for selling. This is a subjective value. 

Its kind of like buying beer. You can buy one at a bar for $5. You can buy one at a store for $1.50. You can get one free from a friends ice chest. So what is the true value of that beer ? I guess it depends on how thirsty you are. 

For purposes of creating a financial statement a person could use the highest value or the lowest value depending on how they view that asset, imo.

Bill


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