BUYING DEVELOPER vs RESALE (typical scenario)

walter337 wrote:

Yesteday, I purchased 146K points from Wyndham, for $16,000. The aim was to match my 154K points for a total of 300K points and VIP status. My first property is deeed in Star Island, FL and the new one in Atlantic City. The new monthly charge is $78. Is this the best Wyndham offer to purchase 146K points and is the VIP status worth it. I have seven days to cancel.

Unless you are someone who has lots of money to just throw away, you should rescind this purchase as soon and as thoroughly as humanly possible, following the cancellation instructions (which were provided to you in writing, as required by law) precisely and to the letter.

1. VIP benefits are simply not worth that kind of money --- period. Yes, you can apply some points to airfare, etc., but you'll never see total "savings" approacing anywhere near $16,000...

2. You can buy 182k Wyndham points on eBay almost any day of the week (including today) for $100 (...or less), so why on earth would you ever pay $16,000 for 146k points directly from Wyndham? Once you have the points, you can use them anywhere in the Wyndham system (as space is available, of course). I saw one "no reserve" auction for 182k Wyndham points which closed last week with NO bids. In short, those 182k points (based at Wyndham Palm Aire, located somewhere around Pompano Beach, FL) could have been purchased for ONE DOLLAR, plus closing costs, but there were NO bidders. It's probably now re-listed even as I type this...

3. I assume you have done the math and now presumably realize that you are signing on for new maintenance fees in an amount approaching $1000 per year for your 146k points. Frankly, that's just plain nuts...

'Nuff said.

I was told at a presentation (by a company offering to "buy" timeshares at a negative price) that your heirs will be pursued by the timeshare for past due maintenance fees. And that one's estate will be dunned for several years' worth of MFs if no heirs are named or found. In my case, "up to 40 years" of maintenance fees would be sought by the timeshare as "liquidation damages." Whether this is correct or not, I don't know. joedeboer@yahoo

josephb172 wrote:

I was told at a presentation (by a company offering to "buy" timeshares at a negative price) that your heirs will be pursued by the timeshare for past due maintenance fees.

Unlikely...at best. Heirs must first overtly ACCEPT the inheritance of a timeshare (or of most anything else, for that matter) before actually assuming legal or personal responsibility for any of its' associated fees, taxes, etc. --- past, present or future. As far as relevance to the original topic at hand here (i.e., developer vs. resale), it would not ultimately matter a bit whether the potential "inheritance" was of a developer-direct purchase or of a resale market purchase.

The heirs are not necessarily responsible for timeshare maintenance fees, but the estate IS responsible ... maintenance fees are a debt just like any other debt that has to be paid until the timeshare is sold or changes ownership.

I recently bought a timeshare with the Berkshires in MA with the developer. After returning from the presentation, I decided to do some homework and found out about resale timeshares. my eyes are now wide open and I am in the process of cancelling my contract. Does anyone have any advice on how to ensure that the conract is indeed cancelled? Also, I'm looking into buying a resale and did come across the company Holiday resale. I looked them up on the BBB and seem to be legit. Should I be leary of them besides the steep closing costs? I replied on Redweek and have not recieved any responses yet? Seems a bit odd. Has anyone purchased from a private seller on Redweek and if so, any advice on what to ask or look for? Can scams occur on Redweek? Someof the prices seem too good to be true. Is it?

I have purchased two properties from Holiday resale (Wyndhan points - Bonnet Creek and RCI Points - Silver Lake) and am generally happy with their performance. The prices were very good. It takes several months to complete the closings, but I believe that is normal.

People are literally giving away less desireable timeshares right now just to get out from paying maintenance fees. If one of these rock bottom sales suits your timeshare purposes (it is close to your home or a place that you know you will visit annually) I say "fill your boots"! However, it may be worthwhile to purchase a "relatively expensive" resale timeshare such as the Manahttan Club - prime time, or a Marriott or Hyatt in a ski resort - ski season for up to $20K to get the most "bang for your buck". Purchasing timeshare is very particular to each individual and there is no one right magic best purchase for everyone.

Godd for you for doing your homework however. Continue checking out the numerous timeshare websites, forums and resale businesses to continue your timeshare education! I have found the members on this redweek site to be very informative and to offer great advice.

Greg

sherryc101 asked numerous assorted questions:

========================================== Re: >> Does anyone have any advice on how to ensure that the conract is indeed cancelled? <<

If you do a search on contract cancellation, you will easily find many posts on the subject. In short summary, however, follow the cancellation instructions EXACTLY as stated in your contract (the law requires that you were provided with those cancellation rights and instructions, in writing, at time of purchase). Also, make CERTAIN that you meet the time dealine for cancellation (I seem to vaguely recall that it is 5 days in Massachusetts). Keep copies of anything and everything you send. If you retain your certified mail receipt, then you have legal proof in hand for future use that you actually met the deadline. If you fail to meet the deadline, then you are just plain out of luck --- you own it. ===================================

Re: >> ....Holiday resale. I looked them up on the BBB and seem to be legit. Should I be leary of them besides the steep closing costs? I replied on Redweek and have not recieved any responses yet<<

BBB "rating" means little or nothing, but Holiday IS indeed a legitimate resale entity. Their closing costs are higher than average, but not obscene. Holiday tends to be very slow in closing transactions. They also have a tendency to have inaccuracies in facts and details in their ads; check and verify EVERYTHING. As with many commercial entities, Holiday insists on using THEIR closing company (although YOU as buyer pay the closing costs). There is really no way around that particular "arrangement" if you buy from Holiday (it's not an uncommon practice with commercial resellers, who also make some money on those closing costs). If you are concerned about not receiving a prompt email response (it could be a computer problem at your end, at their end, or anywhere in between), Holiday usually also lists a toll free phone number in their ads, so it's certainly easy enough to just make a phone call (have their ad / listing number in hand first, to save time). ====================================

Re: >> Has anyone purchased from a private seller on Redweek and if so, any advice on what to ask or look for? Can scams occur on Redweek? <<

Anyone (whether honest or not) can advertise weeks for sale or rent on RedWeek if they simply pay the advertising fee, just like anywhere and everywhere else. For what it's worth, I have personally both bought AND sold a few weeks on RedWeek in recent years and had no problems at all as either buyer or seller. There is certainly nothing inherently "untrustworthy" about a "private" seller --- and far more often than not the best prices are found in private sales, since there is no one collecting a commission in a private transaction. Just make sure that you FULLY understand what you are buying (float vs. fixed, deeded vs. RTU, any date "blackouts" on "float" reservations, etc.) and remember that, as buyer, due diligence is YOUR personal responsibility. Also, I suggest that if you buy from a private seller make sure that YOU, as the buyer, get to choose and use a closing company of YOUR OWN choice (often not even an option with a commercial reseller, such as Holiday). If a private seller insists on "handling it all themselves" or insists on using only one particular closing company, tell them "no thanks, goodbye" (unless THEY are paying the closing costs to a reputable closing company which is acceptable to you). If you are paying the closing costs as the buyer in a private transaction, then it should be YOUR choice of a closing company. There are several good closing companies (and numerous lousy ones) around. Figure on paying $300 at a minimum for closing costs, no matter WHO you use. If the resort charges a "transfer fee", be aware in advance that this "transfer fee" cost is NOT ever included in the basic closing costs and is generally your separate responsibility, to be paid directly to the resort. That "transfer fee" can be anywhere from zero to $500, but is generally somewhere in the $75 range. You can easily learn that "transfer fee" cost info in advance with a phone call made directly to the resort or to its' management company.

Hope some of this helps you. Don't be in a big rush to buy and THOROUGHLY DO YOUR HOMEWORK FIRST. The timeshare resale market is currently at rock bottom in this weak economy, but the truth is that SOME weeks at SOME places are virtually worthless, even in the best of times. And, regardless of cost, I recommend that you NEVER buy a "weak" timeshare week in the unrealistic hopes of somehow later magically "exchanging" an inferior week for a much better one. The world of "exchanging" is very rapidly changing these days --- and NOT for the better. Remember too that annual maintenance fees are "forever or until you sell or die, whichever happens to occur first". ;-) Good luck.

Wow, thanks for all the responses! I will heed all the advice and take my time after I cancel. MA allows for cancellation by midnight on the 3rd day, if it helps anyone else.

sherryc101 wrote:

MA allows for cancellation by midnight on the 3rd day, if it helps anyone else.

If this is correct (and I have no reason to believe otherwise), then MA has the dubious distinction of being "tied" with only a VERY few other states for "shortest contract rescission period in the entire USA." In most states, the rescission period is 5-7 days (it's 10 days in Florida). Alaska is a highly unusual exception at 15 days.

Yes, it is correct to say that MA has a very small window. All the more reason to be very sure when making that decision if you live there. Your primary residence determines the amount of days you have to cancel. Fortunately, I had 7 days in New Jersey.

sherryc101 wrote:

Your primary residence determines the amount of days you have to cancel.

No disrespect intended, but this statement is absolutely NOT correct. ONLY the laws of the state in which a timeshare is located govern a rescission period; that period (and the specific cancellation instructions associated therewith) must be specified within the contract documents. It matters not one bit where the buyer "resides"; that particular detail is completely irrelevant to contract rescission.

I have purchased a few Timeshares from Redweek. Many times though I have sent emails and not gotten a response back to requests I questioned that as well. If I got a response more than 5 days later then I did not purchase from that buyer. As a buyer you pay all the closing and I have always used Timeshare Transfer in Vero Beach and they do everything even pay the seller for you. The seller gets no money from you and doesn't receive anything until all documents have been signed and the title search on the deed has been done and approved without any liens. You really cannot go wrong . I paid $325 on each one I bought. I found Redweek honestly to be the best and the one that I felt most comfortable with. Also make sure that you do know the exact unit type. A 1 bedroom with Kitchen for example at the Sheraton Vistana in Orlando has a Standard and and Premium . The Standard has your smaller version of a one bedroom with a limited kitchen on the wall of the unit and small appliances but the Premium has a full kitchen with full size appliances so make sure you call the resort with the unit number and they will tell you exactly the Sq footage and what the unit has before you agree to buy. Hope this has helped.

The best way of buying is a resale from the developar. For example Marriot timeshare uses points now, but you can still buy a resale week from Marriott in combination with points. They call it a combo or hybrid. cheapest and least riskiest way of buying. https://www.marriottvacationclub.com/resales/index.shtml

Yeah if you call $35,000-$80,000 the cheapest way of buying.

The developer resales are 2-5Xs what you can get on the resale market and you still need to buy points at retail ($10-$11 per point) for an equal amount of points. So 4000 points are still going to run you in the $30's and 6000 in the $40's or more.

Maybe the least risky but certainly not the cheapest. And you still end up with something that you can't sell for more than 1/5th or less of what you paid.

Just purchased a resale 1 BR deluxe villa at Westgate Branson Woods for $7800 EOY ODD, financed thru developer. Having serious questions & concerns, but spouse wants to keep. I have been reading these forums for some time & we've always rented timeshares in past, looking to do something more permanent. Lots of opinions out here re: resale versus developer purchase. HELP!

km133 wrote:

Just purchased a resale 1 BR deluxe villa at Westgate Branson Woods for $7800 EOY ODD, financed thru developer. Having serious questions & concerns, but spouse wants to keep. I have been reading these forums for some time & we've always rented timeshares in past, looking to do something more permanent. Lots of opinions out here re: resale versus developer purchase. HELP!

Rescind immediately .... It would seem to me that $7800 for a EOY (every other year) for a one bedroom in Branson's vastly overbuilt timeshare resort community is extremely high in cost.

There's a 2 bed/2 bath EOY (odd) for sale at that Westgate resort in Branson MO on Redweek for $500 .... that's more in line cost wise.

Rescind within the allowed time and do more research. The Westgate "deal" will still be available if you decide it's the best deal for you. It won't be. Westgate has a terrible reputation and even the few who think you should buy developer Westgate would still be one that most would recommend that you stay far away from.

Recind! Never have bought from developer. You can get on resale market for way less than what you have been charged.I own 8 timeshares and have bought all from outside resort. Repeat....Recind!

In addition to my previous email, I wouldnt buy a Westgate property. You should buy somewhere with great trading and then if you want exchange into the places you want to go.