Distressed sellers- good time to buy?

I know very little about timeshares, point systems, deed exchanges, etc. My family and I are currently in Hilton Head at a Marriott Vacation Club resort and having a wonderful time. We were discussing the possibility of owning something, but we really like the variety of going different places at different times, etc. Thought about going to the presentation here, but my wife said it may be a better (and cheaper) idea to look for a resale, especially with the economy not really chugging along yet. Is that correct? Any tips on what to look for/what to avoid? I am going to be doing some reading and research, but thought this might be a good place to start. Thanks!!!

todda36 wrote:

I know very little about timeshares, point systems, deed exchanges, etc. My family and I are currently in Hilton Head at a Marriott Vacation Club resort and having a wonderful time. We were discussing the possibility of owning something, but we really like the variety of going different places at different times, etc. Thought about going to the presentation here, but my wife said it may be a better (and cheaper) idea to look for a resale, especially with the economy not really chugging along yet. Is that correct? Any tips on what to look for/what to avoid? I am going to be doing some reading and research, but thought this might be a good place to start. Thanks!!!

My suggestions follow:

1. Do NOT attend any developer-direct "presentations", which are ALWAYS filled with lies, half-truths, assorted misrepresenations and slick, underhanded sales tactics from hungry sales weasels. Avoid them like you would avoid a communicable disease...

2. Buy only RESALE, but don't consider buying resale until AFTER you have learned the many complexities, nuances, details, costs, different systems and their various limitations. You will likely spend weeks (maybe even months) before you actually know enough to make an informed buying decision. It's always easy to buy --- but it may be very difficult sell later. It pays to do the research and avoid making an expensive mistake now which is difficult to reverse later.

3. The best way and place on earth to gain a thorough timeshare education is to read and read (and then read even more) the many vaious forums on the Timeshare Users Group (see http://www.tug2.net). There is occasionally some useful information to be gleaned from these RedWeek forums too, but there is also a fair amount of bad advice and incorrect, inaccurate and/or obsolete "information" offered as "knowledge" here in the RedWeek forums. There is, simply and honestly stated, MUCH less experience and MUCH less actual knowledge to be found on the RedWeek forums and MUCH more actual knowledge and experience on TUG.

In any event, STUDY AND LEARN anywhere and everywhere you can BEFORE you consider buying ANYTHING, ANYWHERE! If you don't, you'll likely later regret (and pay for, financially speaking) having acted too hastily.

Thanks Ken! I appreciate the good advice. It sounds like you have to be VERY careful. If you do the research, can you find something that is worth it? I have just rented from owners through Redweek, and it seems relatively easy and hassle free.

todda36 wrote:

Thanks Ken! I appreciate the good advice. It sounds like you have to be VERY careful. If you do the research, can you find something that is worth it? I have just rented from owners through Redweek, and it seems relatively easy and hassle free.

Yes, you ABSOLUTELY can find "something that is worth it", but it will require patience, diligence and lots of homework and searching. I have personally purchased two additional weeks during the past year, at bargain prices (I owned six other weeks already, and I use them all).

There are many factors to consider;

1. Is it a place you WANT to visit? (buying just to exchange is truly just a fool's errand these days, plain and simple). Getting a "free" week in North Icehouse, Alaska is no bargain at all if you won't ever go there and it's nearly worthless as an "exchange" (but you'll still have to pay annual maintenance fees anyhow --- forever).

2. Can you drive or affordably travel to that location? (Hawaii is a beautiful place and many timeshares there are dirt cheap right now, but with today's airfares it's a huge financial burden just to even GET there). In addition, Hawaii is continually inventing all kinds of new fees and taxes on non-residents. I would NEVER buy a timeshare there, personally.

3. Are the maintenance fees (which are annual --- and which are also FOREVER) reasonable? Keep in mind that the only direction those fees will ever go is UP. If maintenance fees are as high as what you are paying to rent in the same time and place, then why buy at all? It's not like timeshares are a good financial investment --- they aren't. They never have been and they never will be. A timeshare purchase today should be ONLY for its' DIRECT USE VACATION VALUE TO YOU! If you buy for ANY other reason, disappointment will surely follow. Good luck.

One last thing Ken. What are the best places to look for resales in your experience?

todda36 wrote:

One last thing Ken. What are the best places to look for resales in your experience?

The cheapest place to find resale timeshares are on Ebay under real estate .... copy and paste URL:

http://shop.ebay.com/i.html?LH_PrefLoc=1&_nkw=timeshares&_armrs=1&_from=&_ipg=&_sargn=1&_sop=2

todda36 wrote:

Thanks Ken! I appreciate the good advice. It sounds like you have to be VERY careful. If you do the research, can you find something that is worth it? I have just rented from owners through Redweek, and it seems relatively easy and hassle free.

The good thing about renting, as you mentioned above from timeshare owners, is that you're not obligated to pay rising yearly maintenance fees and possible special assessments forever. You have to remember when you purchase a timeshare you're purchasing deeded parcel and it's yours forever or until you sell it, give it away or it changes ownership.

todda36 wrote:

One last thing Ken. What are the best places to look for resales in your experience?

In my opinion, the two very best sites to find QUALITY timeshare resales are right here (RedWeek.com) and also MyResortNetwork.com. However, you must be a paid member of RedWeek in order to respond to any ads you see on RedWeek (not so for MyResortNetwork, which does not have any paid "membership"). On both sites, you can conduct searces by geographic area and / or by resort name. From there, it's then a matter of sifting through available weeks to see what fits your own interest and availability.

You might also occasionally find a stray decent week on Bidshares, but not too frequently. Craigslist is just a crap shoot and, when it comes to timeshares, well populated with assorted scammers and spammers to boot. There are honest sellers on Craigslist too of course, but in my opinion you have to exert far too much time and effort to "separate the wheat from the chaff" there.

On any given day, there are (literally) a thousand or so timeshares listed on eBay. However, only VERY, VERY rarely will you EVER find any really good quality or prime weeks listed there as auction items. In fact, eBay has now become a favorite "dumping ground" for timeshares acquired by the numerous so-called "PostCard Companies". Someone has already paid the PCC about $3,500 to "take the timeshare off their hands", so if the PCC then dumps the timeshare on eBay for a dollar, the PCC is STILL $3,500 ahead of the game (minus only the relatively minor expense of eBay listing fees). This fact just again reinforces my earlier advice to you --- consider buying ONLY what you KNOW you will actually USE. NEVER allow yourself to be lured or distracted by a "cheap price" or "free". That "free" timeshare (...which might very well be worth exactly nothing anyhow...) STILL carries an annual maintenance fee for as long as you own it. If it's worthless, you will have a hard time parting with that bad purchase decision later, even if it was "free" in the first place. Meanwhile, those annual maintenance fees would remain your personal, legal responsibility and obligation.

In summary, proceed very slowly and very carefully. Good luck.

I beg to differ ..... quality is in the eye of the beholder. What may be a quality resort to you may not suit the needs of someone else. There are literally hundreds of very nice resorts/timeframes on Ebay .... the fact that they may be from Postcard Companies is irrevalent. Many TUGgers have bought timeshares from Postcard Companies via Ebay.

Speaking of free timeshares .... I recently acquired a week 25, riverfront, in the only building of units at the resort directly on the river .... this building's units were completely refurbished this spring (they refurbish a different building each year), Gold Crown, in a very popular resort town that's approximately a 1-1/2 hour drive from our home and 90 miles from a major southern metropolitan area with a population of 5,729,302 .... the seller paid for this year's maintenance fees and all closing costs and the maintenance fees are only $450 a year. This resort charges over $200 a night to rent out a unit such as ours, so as you see quality IS in the eye of the beholder.

todda36 wrote:

Thanks Ken! I appreciate the good advice. It sounds like you have to be VERY careful. If you do the research, can you find something that is worth it? I have just rented from owners through Redweek, and it seems relatively easy and hassle free.

I overlooked one point which definitely warrants at least passing mention. After you study up and perhaps later feel comfortable in making an informed purchase (regardless of wherever you might find that particular week advertised for sale) it is always preferable to use a closing company of YOUR selection, whenever the option and opportunity exists to do so. Too often, commercial sellers (particularly the PCC's on eBay) are VERY closely aligned with one particular closing entity and try to force the use of THEIR closing company upon the buyer, even though the BUYER is the one paying the closing costs! Sometimes, the seller and the "closer" are even actually all the same people, merely "changing hats" for the closing portion of the transaction.

An independent closing company which has NO affiliation with the seller will much better look out for YOUR best interests as buyer (instead of merely looking to help the seller "seal the deal" in the most expedient manner possible). If there are unpaid fees, liens, mortgages or other encumbrances on the ownership, you certainly want to know about them BEFORE becoming the new owner. Also, in addition to estoppel, an independent closing company will handle escrow, ensuring that the seller does NOT receive funds until all details are finalized in a manner satisfactory to (and protective of) the BUYER'S best interests.

Anyway, study up --- and good luck finding whatever suits you best.

jayjay wrote:

Speaking of free timeshares .... I recently acquired a week 25, riverfront, in the only building of units at the resort directly on the river .... this building's units were completely refurbished this spring (they refurbish a different building each year), Gold Crown, in a very popular resort town that's approximately a 1-1/2 hour drive from our home and 90 miles from a major southern metropolitan area with a population of 5,729,302 .... the seller paid for this year's maintenance fees and all closing costs and the maintenance fees are only $450 a year. This resort charges over $200 a night to rent out a unit such as ours, so as you see quality IS in the eye of the beholder.

Where did you find this unit advertised?

lancec13 wrote:

Where did you find this unit advertised?

It was on TUG .... the daughter-in-law posted it for her mother-in-law who was in a nursing home.

However, you would have to know the area and the resort to appreciate it. We once owned a week in a non-riverfront building at this same resort, so I knew the significance of owning riverfront .... tubing is VERY popular on the river in the summer months (we own the week before July 4th) and I also knew how well managed the resort is having owned there previously .... also a water park is directly across the river from the resort.

This is a wonderful time to be a buyer of timeshares. I recently bought 2 marriott weeks for almost nothing and they originally cost the owners over 40,000 at the resort. It's most certainly a buyer's market. Happy hunting!