The $1 sellers on Ebay....how do they make their money?

I bought three timeshares on Ebay...$295 (before I found TUG), $2.50 and $1.

All but the last have some kind of 'closing costs' associated with them. In calling one resort...they have no transfer fee. The tax stamp is only a couple of bucks for the weeks (OBX in NC) for the county fee (not sure if there's an additional fee that didn't show up on the deed).

The last auction is for 2011 use and "closing costs paid by seller".

I'm assuming that places like Vacation Innovations (the first two), Premier Vacation Property (the last), and other sellers are getting some kickbacks (or are just a satellite office of) from closing company? Or do they get money from the seller to dump their timeshares for them?

Thanks!

AFARR said:

I bought three timeshares on Ebay...$295 (before I found TUG), $2.50 and $1.

All but the last have some kind of 'closing costs' associated with them. In calling one resort...they have no transfer fee. The tax stamp is only a couple of bucks for the weeks (OBX in NC) for the county fee (not sure if there's an additional fee that didn't show up on the deed).

The last auction is for 2011 use and "closing costs paid by seller".

I'm assuming that places like Vacation Innovations (the first two), Premier Vacation Property (the last), and other sellers are getting some kickbacks (or are just a satellite office of) from closing company? Or do they get money from the seller to dump their timeshares for them?

Thanks!

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Are you kidding me... let's say they buy a timeshare for 25 cents and turn around and sell it for $2! Do this a million times and you'd get rich quick also... :hysterical:

Seriously, the ebay sellers are the same ones who travel across the country telling folks about the evils of timeshare ownership and getting people to pay THEM 3K or 4K to take it off their hands. Then they get rid of their inventory on eBay. Anything over a $1 sale price is gravy.

They also make a profit on the closing costs.

ace2000 said:

Snip...

Seriously, the ebay sellers are the same ones who travel across the country telling folks about the evils of timeshare ownership and getting people to pay THEM 3K or 4K to take it off their hands. Then they get rid of their inventory on eBay. Anything over a $1 sale price is gravy.

They also make a profit on the closing costs.

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Should I feel bad about buying on Ebay then? The weeks I got are advertised other places (Redweek, TUG, etc.) for identical weeks for $1500, $2000, etc. (of course there's always the person trying to sell it for $15,000 because the purchase price--presumably from the resort---was $20k...I feel sorry for them).


AFARR

AFARR said:

Should I feel bad about buying on Ebay then? The weeks I got are advertised other places (Redweek, TUG, etc.) for identical weeks for $1500, $2000, etc. (of course there's always the person trying to sell it for $15,000 because the purchase price--presumably from the resort---was $20k...I feel sorry for them).


AFARR

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Well, to be fair, people on TUG have mixed feelings about it. I personally feel guilty for about 5 seconds, then I quickly get over it when I think about how much money I saved.

If someone wants to pay someone 3K or 4K to take a timeshare off their hands, they made their own choice. Definitely not my concern.

ace2000 said:

If someone wants to pay someone 3K or 4K to take a timeshare off their hands, they made their own choice. Definitely not my concern.

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Unless they came to TUG asking for advice beforehand!

Don't feel guilty. It is possible that with some of those companies, the people still own their unit until a sale is complete. So they certainly wouldn't want to get the t/s back.

What's done is done. Not making a purchase off ebay because the seller got hosed doesn't change that fact. Plus, considering that the title doesn't transfer until it's sold on ebay, you could look at it from the perspective that you are helping the former owners get value out of the money they did pay. They are getting out of the timeshare they don't want.

Many of these Ebay sellers require you to consummate the deal by using Title Company X. If you do further research, you will often find that Company X is located at the same address. Obviously this can be a conflict of interest.

A closing company is supposed to verify the accuracy of key information that can impact upon your free and clear ownership of the timeshare. They should verify the unit number and size (if applicable), that there are no liens or unpaid maintenance fees or special assessments, etc...That's why most TUGgers who buy on Ebay insist on receiving the contract, and independently verify the information, before signing and paying.

When a few hundred dollars or less is involved, the worst that can usually happen is that you decline to go through with the deal and the seller refunds your payment, if you have already paid anything. If the seller has a huge number of sales and a perfect or high Ebay rating, usually the info in the auction description is accurate. And if you find an error, they will work with you on a fair resolution, or refund your money quickly without a problem.

I have bought many weeks and Points packages through Ebay. All but one worked out fine. In one case I won what was supposed to be a 2 bedroom unit but when I called the resort to verify it, I found out it was a 1 bedroom. I called the seller, from whom I had bought other weeks w/o any problems. He was shocked because he had an estoppal letter from Wyndham verifying that it was a 2 bedroom. He faxed a copy of it to me as proof. Obviously he would have refunded any monies I had paid if I had signed a contract and found out later. But a lot of time would have been wasted on both ends. I had already told a relative about my fantastic win and promised to let her use it the following year .

The seller offered to let me continue with the purchase for my winning $6.00 bid, and pay only 50% of the usual closing fees. It would be a bargain for anyone at that price but since we already own many (too many, says hubby!)timeshares, I passed on the offer. The seller re listed it and I saw that the winning bid was $850..