EBAY $1.00 TIMESHARE AUCTIONS DEVALUING ALL TIMESHARES ....

It's not Ebay's fault (they are merely an auction site and they can't place restrictions on what is auctioned if the product is legal) but the hundreds of $1.00 timeshare auctions, some in very nice resorts, are devaluing ALL timeshares.

The $1.00 timeshare phenomena is a new concept brought on mainly by postcard companies who get desperate owners to pay them $3000+ to relieve them of their timeshare obligations, and they then turn around and sell them on Ebay for $1.00. In the past, you never saw timeshares auctioned for $1.00 on Ebay.

Many of the timeshare auctions are at very nice gold crown resorts. What this phenomena does is DEVALUE ALL TIMESHARES in the long run. It's a sad situation for the industry and the reputation of timesharing, but a boon for timeshare bargain hunters.

I agree with you, Jayjay. Why would anyone in their right mind pay full price when they could pay practically nothing!

Does this mean developers will stop building? Or at least stop building for profits. I would guess they would certainly slow down. I'm quite certain no one is in it for the maintenance fees, even as they rise.

Seems you're right about a boon for bargain hunters, cause I sure can't imagine people vacationing less in the overall picture.

I love buying when no one else wants it and selling when no one can get it.

BUT ITS NOT AN INVESTMENT (unless you make a profit?)

So, Jayjay, are you ready to load back up on timeshares? And just out of curiosity, if not, is there a fundamental reason or held belief that would keep you from doing so?

orvillef2 wrote:

I agree with you, Jayjay. Why would anyone in their right mind pay full price when they could pay practically nothing!

Does this mean developers will stop building? Or at least stop building for profits. I would guess they would certainly slow down. I'm quite certain no one is in it for the maintenance fees, even as they rise.

Seems you're right about a boon for bargain hunters, cause I sure can't imagine people vacationing less in the overall picture.

I love buying when no one else wants it and selling when no one can get it.

BUT ITS NOT AN INVESTMENT (unless you make a profit?)

So, Jayjay, are you ready to load back up on timeshares? And just out of curiosity, if not, is there a fundamental reason or held belief that would keep you from doing so?

Hi Orville, no I'm not ready to load back up on timeshares as they are very easy to buy and very hard to sell.

I'm just glad we sold our 9 timeshares when we did at what we paid (except for the developer bought one - we lost bigtime on that purchase). It seemed year after year maintenance fees and exchange company fees rose and we were saddled with a couple of special assesments. We do, however, rent from timeshare owners, so in a sense we are still timesharing without the hassles of ownership.

Via timesharing we found an area of this great country where we wanted to spend the rest of our lives. To make a long story short we eventually we sold our home and moved to that area, so we do have to thank timesharing for that and for seeing many parts of this country we probably would not have seen otherwise.

Also, since we have moved we don't care to vacation anywhere for a full week. Our vacations now are at max 4 days, but if I was looking to buy, Ebay certainly has some great deals even though postcard companies are devaluing all timeshares.

I guess postcard companies are part of the nature of the beast in the timesharing industry ... always looking for ways to separate people from their money.

It all starts with timeshare presentations and the lies that are (many times) told and snowballs from there with upfront fee resale companies, postcard companies, exchange companies and a host of other businesses related to timesharing.

Baloney ! If a timeshare sells on Ebay for $ 1, it's because nobody thinks it's worth more than that. Quality timeshares will sell for a market price that can be several $ 1,000. Sharp bidders are lowering their maximum bids for some quality timeshares because the PC company sellers are loading them with extra and sometimes even bogus costs. I haven't bid on several such offerings because the closing service was not acceptable. The cost of timeshares varies more with the economy as vacation expenses are initially discretionary. This basic principal dictates supply and demand which in turn determines pricing.

I think, with the entire housing market in a dire slump and Floridians strapped with whopping insurance and tax increases due to all the hurricanes, we'll see many more timeshare bargains in the future. Also, with variable home interest rates rising people will not have as much money to spend on timeshares/maintenance fees/special assessments/exchange company fees etc.

JMHO

We've been watching ebay for years, and anything related to timeshare sales or vacation rentals is not selling. It doesn't matter if it is good or bad - people are hunkering down and not spending. This is a function of a bad economy, nothing more. It is a good time to buy if you want to have that timeshare long term. If you want to sell, you are just totally out of luck on ebay.

If I'm not mistaken, the $1 eBay sales are really $3000 or some such sales, as that is what the original owner is paid by the company selling them.

On eBay, my experience has been that sales of anything are what the buyer will pay. Many items sell for more than they would elsewhere, and some for more.

I shop on eBay for many things because I can find what I want without getting out of the house. I am disabled and this is a premium for me. I also research local and Internet prices, so I know what to expect. Once in a while, I get a real bargain.

Here at Redweek, there are fewer listings, and they are not as easy to find, but they do have reputable escrow companies and wonderful advice. That counts for a lot.

carries25 states, quoted in pertinent part:

>>If I'm not mistaken, the $1 eBay sales are really $3000 or some such sales, as that is what the original owner is paid by the company selling them. << =======================================

Actually, Carrie, it's not really that way at all......... In specific regard and reference to the so-called "Postcard Companies", who auction off weeks on eBay which have been obtained from desperate timeshare owners, those desperate owners are the ones who have actually PAID the "Postcard Company" several thousand dollars to just "take the unwanted timeshare off their hands", so that they can get out from under it and terminate their ownership. The PCC then just "dumps" the week on eBay for whatever they can get for it, having ALREADY been paid several thousand dollars. Anything extra retrieved on eBay in the auction process by the PCC is just gravy for the PCC. The original owner gets not one nickel.

So in the end, the original owner(s) have paid whatever he/she/they bought the timeshare for in the first place, PLUS have also PAID OUT several thousand dollars more to the "Postcard Company" to just "take the timeshare off their hands". The Postcard Company is a pure profit operation (legalized theft, in my personal opinion) making thousands of dollars even if they "dump" that timeshare on eBay for only $1.00. The PCC then makes even more money with inflated closing costs imposed by their own "in house" closing company. Often, they don't even allow the buyer to choose or use a closing company of the buyer's own choice).

There are folks who believe that there are timeshare bargains to be found on eBay. That may be so, but I personally would never do business with any Postcard Company under ANY circumstances, regardless of any "bargain price", knowing full well that they have basically "stolen" that week from some desperate timeshare owner in the first place. Personally, I can't (and I won't) simply ignore how the PCC got that week in the first place just to get a "bargain" ---- but I also acknowledge that such a position / decision is one which every person has a right to make individually.

In fairness, not every timeshare listinge on eBay is by one of these thieving Post Card Companies, but many people on many timeshare sites believe (and openly state) that well over 90% of all eBay timeshare listings are actually by PCC's, operating under multiple, different names within each company. I don't claim to know if this statistical claim is correct, or how those claiming it have derived it. What I DO know with certainty, however, is that I personally will NEVER do business with ANY Post Card Company.

carries25 wrote:

If I'm not mistaken, the $1 eBay sales are really $3000 or some such sales, as that is what the original owner is paid by the company selling them.

Actually, just the opposite occurs. Postcard companies charge desperate owners $3000 + - to take their timeshare off their hands. They then turn around and auction those timeshares on Ebay for $1.00. The original owner is paid nothing, but they are relieved of any further timeshare obligations as owners (ex: maintenance fees).

If the timeshare on Ebay sells for $1.00 the postcard company makes a remarkable profit, however if the $1.00 timeshares do not sell the postcard companies are responsible for upcoming maintenance fees and special assessments.