Is Ebay a Reasonable Indicator of Fair Market Value?

[Fayeoctober]

Within the past two months there have been three or four Ebay sales of weeks similar to ours at our resort. The winning bids have ranged from one cent to $5. These are all "red weeks" although some are "pinker" than others. Although we bought all three of the weeks we currently own via re-sale, this has been somewhat upsetting to me although I agree there is nothing I can do about it. Today a Week 22 in a building with a location similar to ours (in terms of closeness to the beach) sold for $1. When I saw this listing I tried to verify with both our resort and the management company whether the maintenance fees and assessment payments were up to date in case I wanted to recommend it to some people. They wouldn't give me the information, even though I indicated I didn't feel it was a privacy issue since I wasn't requesting information on the owner. Not being able to confirm whether everything was on the "up and up" might have kept some people from bidding. Wondering if other members of TUG consider this a privacy issue and also what can the resort do to keep out low bid buyers who may just decide to rent out the unit this year and then not pay maintenance fees next year?

 

[scootr5]

Within the past two months there have been three or four Ebay sales of weeks similar to ours at our resort. The winning bids have ranged from one cent to $5. These are all "red weeks" although some are "pinker" than others. Although we bought all three of the weeks we currently own via re-sale, this has been somewhat upsetting to me although I agree there is nothing I can do about it. Today a Week 22 in a building with a location similar to ours (in terms of closeness to the beach) sold for $1. When I saw this listing I tried to verify with both our resort and the management company whether the maintenance fees and assessment payments were up to date in case I wanted to recommend it to some people. They wouldn't give me the information, even though I indicated I didn't feel it was a privacy issue since I wasn't requesting information on the owner. Not being able to confirm whether everything was on the "up and up" might have kept some people from bidding. Wondering if other members of TUG consider this a privacy issue and also what can the resort do to keep out low bid buyers who may just decide to rent out the unit this year and then not pay maintenance fees next year?

It's probably the low end of the market value, but it's the only easily accessible one.

I'm not surprised the resort wouldn't give you the info. The purchaser would typically ask for an estoppel to verify those details before signing the contract.

 

[Ty1on]

An EBay bid on real estate, including timeshares, is not binding. One can win the bid, request an estoppel, and then decide not to proceed.

 

[csxjohn]

If they are being sold for $1 and $5 on eBay I don't know where you might be able to get more for yours. It's a good indicator of todays market value.

 

[tschwa2]

If your resort or local area has a decent healthy resale outlet, then it really isn't a good indicator although the ball park figure is still likely not off by more than $500 or $1000.

It also depends on the ebay reseller. There are some that aren't reliable and the bids they get are not market price regardless because those in the know stay very far away.

 

[theo]

My $0.02 worth...

<snip> When I saw this listing I tried to verify with both our resort and the management company whether the maintenance fees and assessment payments were up to date in case I wanted to recommend it to some people. They wouldn't give me the information, even though I indicated I didn't feel it was a privacy issue since I wasn't requesting information on the owner. <snip>

IMnsHO, the resort position and response was entirely appropriate. Owner account status (with or without actual owner identity) might appropriately be revealed to an actual buyer-in-process (via estoppel) to a third party closing entity which represents the seller or buyer, but not just disclosed upon request to the idly curious.

If the account was in arrears, that fact would surface in the estoppel process for an actual buyer.

 

[dioxide45]

Whether maintenance fees are paid and up to date is no one's business unless they are under contract to buy a unit or the resort files a lien against the week then making it public record. I too can understand the property not wanting to share such information.

 

[VegasBella]

It's probably the low end of the market value, but it's the only easily accessible one.

I agree with this.

Some counties have completed real estate transactions online and they are searchable showing sales price and date etc. An average of recent sales similar to your ownership should be Fair Market Value imo. My experience is that it can be tricky to determine the parcel numbers but once you get it decided you can find lots of data.

 

[dioxide45]

If week is going unsold on Ebay or selling for only a couple dollars, chances are there is no market out there for the weeks outside of EBay and finding a buyer would be slim to none. So for those low end timeshares, EBay is a good indicator. For higher value weeks, it represents the low end of the market and you can generally do better by going through a broker.

 

[Maple_Leaf]

Within the past two months there have been three or four Ebay sales of weeks similar to ours at our resort. The winning bids have ranged from one cent to $5. These are all "red weeks" although some are "pinker" than others. Although we bought all three of the weeks we currently own via re-sale, this has been somewhat upsetting to me although I agree there is nothing I can do about it.

You shouldn't let it upset you since I don't think three or four sales necessarily makes a market. Can you rent your week for much more than the MF? Have you recently had a large special assessment? Do owners have confidence in the Board and management? The answers to these types of questions should help you determine whether Ebay sales results are valid price discovery or not.

 

[DeniseM]

In the future - try approaching the ebay re-seller differently.

Say: "I am very interested in buying this timeshare, and I'd like to see the estoppel letter." That is more likely to get the result that you want. Even if you feel suspicious and upset about the price - don't let them know that.

I would not be the least concerned about the ebay prices - most small independents are in the exact same situation. It's the nature of the beast.

 

[ronparise]

To your concern that someone might buy a week where the maintenance fees are paid, rent the week, and then default,,,

Sure that possible. What can you do, short of buying it yourself,? Probably nothing

In these situations I always wonder why the HOA doesn't bid

Is the seller advertising that 2016 mr is paid?

 

[Maple_Leaf]

In these situations I always wonder why the HOA doesn't bid

I've wondered the same thing. Our resort has a broker for weeks at that resort. I suspect that this broker bids on any Ebay for weeks that pop up, in essence establishing a floor for prices.