# Buying Worldmark Points



## Tahoe2006 (Sep 8, 2006)

I see lots of ads to buy Worldmark points.  What is considered a good price to pay for WM  points?


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## RichM (Sep 8, 2006)

There are various formulas people have posted that I've read.. Basically it's something like X cents per permanent credit, plus/minus Y cents per credit available above/below the actual size of the account (i.e. rolled-over credits from the previous year or already-used credits from the current year).   Some people also calculate in a little extra depending on how close the account is to the next anniversary date (when the next block of credits "matures") as a way to factor in the cost of any already-paid maintenance fees for that year.

As for what "X" and "Y" are.. I imagine people will tell you "X" could be anywhere from 65-80 cents, with 70-75 being a more widely accepted range, and "Y" is probably between 5 and 7 cents based on current credit rental prices.

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## kewanee (Sep 8, 2006)

I use this:  6 cents times any banked credits.   70 cents times the annual credits.   This number will be a fair price.  If you beat that, you are doing good.


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## RichM (Sep 8, 2006)

kewanee said:
			
		

> I use this:  6 cents times any banked credits.   70 cents times the annual credits.   This number will be a fair price.  If you beat that, you are doing good.



Yep, basically what I said.. X = 70, Y = 6.


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## short (Sep 8, 2006)

*Lower offer?*

Given the current market and assuming you are making an offer through or to a broker.  What is the likelyhoold of a x=60 and y= 5 being accepted.  Seems like a lot of WM on the market but are they selling like hotcakes at x=70.

The old days (while interest rates were high and inventory was high) one always offered less than asking price.  Does this apply to WM memberships?

Short


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## Spence (Sep 8, 2006)

I don't understand the OP's thumbs down.
An easy way to see what X and Y really are is to search completed auctions on eBay.  Since their transfer is an easy $150 to WM, it's all very transparent, not like Sunterra where you have to play games.


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## PerryM (Sep 9, 2006)

*Normalize to get answer*

Just this week I got 3 offers for 70¢ WM credits from a reseller.  If you look at Craigslist and local newspapers in the northwest you can easily find them for 60¢ direct from the owner.

If you have 20,000 WM credits the MF is $878 or a rough estimate of 4¢ each.

Credits can be rented from other owners for about 6¢ now.

I “normalize” WM accounts 2 ways:

*Cash purchase:*
Take the price - 6¢ each credit available to immediately use – this gives you the “normalized” sales price per credit.
e.g.

10,000 credit account selling for $8,000 and has 10,000 credits in the “bank”:
$8,000 - 6¢ * 10,000 credits (you could rent these out for cash) = $7,400 or 7.4¢ a credit.

*
Taking over finance payments (lots of this on eBay):*
This is a little harder.  Basically, you must take the monthly payment * number of months left to pay = purchase price.  Then subtract the credits in the bank * 6¢ which you could get as cash; this gives you your “normalized” cost per credit.

Those 10,000 credits cost the eBay owner $1.55 3 years ago and he has 7 years, or 84 payments of $216.51 per month left.  You can assume the loan at the same rate and duration or make a lump sum payment of $11,557 (this is nuts).  If 10,000 credits remain in the bank then the net cost is $17,586 or $1.76 a credit.

Obviously this is a horrible deal, but some folks are dying to buy WM and the payment plan makes that possible.  In case you’re wondering, at 13.99% interest of 90% of *the loan is equal to 70¢ per credit when 33 months remain on the contract *($7,000/$216.51).

So just multiply the number of payments left by the payment per month and get the total you will pay for those credits.


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## Bootser (Sep 17, 2006)

Like Tahoe I also see a lot of ads on ebay for Worldmark Trendwest Premier credits. Are the credits different than ownership at a Worldmark resort. Are they anchored against a resort or is that necessary.


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## PerryM (Sep 17, 2006)

*eBay is full of ignorant sellers who don't know what they are selling*

There are TW fractionals in South Lake Tahoe but they are NOT WM Premier credits, they generate Trade Points – basically the same.

Someone advertising South Lake Tahoe and talking about Premier credits has not a clue of what they are talking about – none, zip, zilch – they are not to be believed.

WM credits are all generic and where you buy means little – unless its from the TW salesrep and he/she wants $1.80 for the same thing you can buy for 80¢ from any of the 230,000 WM owners.  There is NO difference.

The transaction takes place via TW and the paperwork comes from TW and sent to the seller for their notarized signature and then the buyer gets the paperwork next.  If expedited takes just a week or so.  Costs $150 - this is cheap for closing costs of a timeshare.

Folks on eBay, in many instances, have no idea what they are selling – the burden is placed on you the buyer.


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## HudsHut (Sep 17, 2006)

Bootser:

All* WorldMark credits are "premier" credits. Within WorldMark, you do not buy an individual resort. Your WorldMark account comes with X annual credits, which allow you to reserve any of the 65+ resorts within the system, with NO EXCHANGE FEE.

*There were a very small number (<10?) of "standard" accounts sold early on. These were RTU for 40 years. 
Trendwest sales reps use that fact to 
1) create a sense of urgency to buy today, as they will tell you you'll never be able to buy a premier account after today. Not true. You can go back to them any time and buy your premier account.

2) to scare the potential buyer away from the resale market, by presenting the doubt that the buyer might unwittingly buy the "standard" account. When buying resale, the seller will authorize you to verify the Owner's account and you can ask whether it is standard or premier.


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## tracey.a (Sep 21, 2006)

I read on another thread about some accounts having housekeeping tokens and some not. Can you explain the difference?


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## Bill4728 (Sep 21, 2006)

Almost all WM accounts come with one house-keeping credit. Some of the high point accounts came with more than one credit. 

Basically, when you stay at a WM resort, they charge you a housekeeping fee. This credit off-sets that fee. But, if you breakup your points into several mini-vacations, the housekeeping fee could add up. 

There are a few "no housekeeping fee" WM accounts out there. They are very rare and are difficult to find and are much more expensive than the normal WM accounts.


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