Timeshare - Net Worth

[SMHarman]

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.

 

[easyrider]

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

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