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A little confused

Discussion in 'Buying, Selling, Renting' started by timfierro, Feb 11, 2006.

  1. timfierro

    timfierro Guest

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    I was on e-Bay and noticed a timeshare for sale with a minimum starting bid of $1. However, the 'buy now' type button is only $2.

    This auction was by Holiday something and does indicate there are the escrow fees, transfer dollars, and some maintenance fees to be paid; but what is the point of having an auction where the 'buy' is only $2?

    Tim
     
  2. boyblue

    boyblue TUG Member

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    All this means is the owner no longer wants the obligation of owning a TS. He also realizes that the closing cost are signifigant so to make a sale more likely he has set the price as low as possible.

    I won a $1.00 auction. It ended up costing me about $400.00 dollars. I took that deal because the MF at the resort was only $405.00 so I got a resort that I could deposit through RCI's PFD for decent value.

    All $1.00 auctions are not bad.
     
  3. libraria99

    libraria99 Guest

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    It is "probably" a white week that they have listed several times before with no bids.
     
  4. AwayWeGo

    AwayWeGo TUG Review Crew: Expert TUG Member

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    Really Eager To Unload Dogs & Cats

    I can't say for sure, but I have formed the opinion that some timeshares may have negative value.

    That is, when you "own" a timeshare, your name is recorded on the deedbook down at the courthouse & all that, but what do you really possess?

    What's actually yours is the obligation forever more to pay the annual maintenance fees, taxes, & reserve charges for your unit.

    What you get in exchange is the right to use (or trade or rent out) the unit you own during the week you've paid for.

    If everything works out right, you get to enjoy luxury accommodations in choice vacation spots for Motel 6 & Super 8 rates.

    But if the timeshare has negative value, getting it free or even for a dollar or 2 is no bargain.

    First off, it won't truly be free or $1 or $2. There will be closing costs, transfer fees, & possibly exchange organization fees. On top of those, there will be annual maintenance fees, taxes, & reserve payments owed to the resort.

    If all those add up to more than what it's worth to go to the resort on vacation, or if the costs total more than what you would have to pay for equivalent or better accommodations on the open market, then the timeshare has negative value.

    The Wisdom Of TUG that I have absorbed, more or less, over the past few years is...
    • Buy resale.
    • Buy at a resort you actually like going to every year.
    • If you buy to trade, buy a 2BR red-season unit for optimum exchange power.
    • Watch those annual fees -- over the years they can add up to lots more than your initial cost.

    -- Alan Cole, McLean (Fairfax County), Virginia, USA.
     
  5. timfierro

    timfierro Guest

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    Thanks for all the replies. I think the reason it caught my eye was that to stay there for a week, would be that amount you could buy it for. Yet, have usage for more years to come by only paying the maintenance fee.

    Thus, if you were planning on staying somewhere for $1000 for a week, and can get the same timeshare for a $1000 as a new owner; you would have received your week and can use it again and again.

    Just seemed kind of odd to me.

    BTW, the maintenance fee seemd reasonable per year.

    Tim
     
  6. cluemeister

    cluemeister TUG Member

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    In NH there are some almost free timeshares that I find occasionally for sale that have very little value. For instance, they are early May weeks in ski country, or early November weeks in the lakes region. These have very little market value, as it's too warm to ski, or too cold to swim.

    They have maintenance fees in the mid $400 range, which is very reasonable for ski season or summer weeks, but way too high for that time of year.

    In short, even if the timeshare was free, the mf is much higher than you could get in rental income, assuming you could find someone to rent the unit at all!

    Now if you can find a $2 timeshare in a place that you like to go every year; during a season that you would like to go every year; and the mf is reasonable enough, go for it!
     
  7. ELE

    ELE TUG Member

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    If you are new to timeshare, you may want to look more. There will always be $1.00 or $2.00 weeks out there. If you are flexible with your travel or if the off season week will allow you to get trades at the resort during the time that you like to travel, it may work for you. The problem is that you won't know whether RCI or II will allow you to trade for the week of your choice. I have a pink red week that allows me to get the week that I want. I also have a blue week that will not allow me to get the week that I want at the resort. If you buy the week and hate it, who is going to buy it from you?
     
  8. Hoc

    Hoc TUG Lifetime Member

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    I wouldn't go that far, though I would go as far as saying that not all $1.00 auctions are bad. :p
     
  9. klynn

    klynn TUG Member

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    I see those prices quite often from Holiday Group for Minnesota. I go to these same resorts in MN several times a year. Even though the weeks Holiday Group sells are basically free the MF are about $500+. I never have a problem getting an RCI Extra Vacation or RCI Last Call for for the same time of the year for alot cheaper. For example last year I bought 5 Last Call weeks for July and August. I paid $149. and $199. I also got Christmas week for $199. It makes no sense for me to pay MF when I can get 2-3 weeks from RCI for the same price.
     
  10. Judy999

    Judy999 Guest

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    Last calls from RCI vs. II Getaways

    I belong to II and have searched their Getaways which I think is comparable to RCI's Last Calls. I have not seen $99 or 199 for the week as occasionally mentioned by Tug members as the rates for RCI Last Calls. I have see $299-399 range for studios. Are II Getaways more expensive than RCI Last Calls? Perhaps it is my location search. :)

    Thanks

    Judy
     
  11. X-ring

    X-ring Tug Review Crew: Rookie TUG Member

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    Indeed, that was my experience when I held dual-memberships.
     
  12. ira g

    ira g TUG Member

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    II more costly than RCI Last call

    We belong to both II and RCI and you are correct that II getaways are more expensive than RCI last call. II does not restrict to 45 days and is really more like RCI Extra Vacations as far as pricing and availability.
     

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