# Barrier Island Station Duck -- Opinion



## nuwermj (Mar 5, 2017)

A friend of mine owns a week at Barrier Island Station in Duck. He is retiring this year and asked me whether he should sell it or keep it. Are there any TUGers who would like to offer an opinion. Is it more valuable to keep and use or to sell the week?

The unit is a 3-BR lockout, week 33 (a late August week). MF are $670 this year -- which seem very low to me. He's owned for about 15 years and has used his week maybe five times, other years he has traded in RCI.


----------



## RonB (Mar 5, 2017)

I can't tell him what to do, but BIS is under new management, (SPM), and improvements have been made, and more are in the works. If they get the resort back into great shape, it should trade better.

Ron


----------



## raygo123 (Mar 5, 2017)

Man, not worth it because of the traffic

Sent from my RCT6873W42 using Tapatalk


----------



## RLS50 (Mar 5, 2017)

nuwermj said:


> A friend of mine owns a week at Barrier Island Station in Duck. He is retiring this year and asked me whether he should sell it or keep it. Are there any TUGers who would like to offer an opinion. Is it more valuable to keep and use or to sell the week?
> 
> The unit is a 3-BR lockout, week 33 (a late August week). MF are $670 this year -- which seem very low to me. He's owned for about 15 years and has used his week maybe five times, other years he has traded in RCI.


So here is my attempt at an answer, it may or may not help...

Barrier Island Station in Duck is sitting on one of the most prime pieces of land on OBX (in my opinion).   The resort footprint runs from oceanfront practically to the sound.  It is also right next to the village of Duck, which provides interesting shops, restaurants, and activities that one can walk to.   This can break up what can be (sometimes) the monotony of the Outer Banks.   What I mean is that in so many neighborhoods in the northern Outer Banks you have to get into your car to do almost anything.  There is no nightlife or dining options that one can just walk to from their front door.

So BIS-Duck has the location, location, location thing down in spades.

The problem is that for years BIS-Duck was allowed to get really rundown and needed renovations were not kept up with as reserves were criminally underfunded (the annual MF was kept too low for too long).  It got almost too rustic (especially for us).   So while we were always intrigued by the great location in Duck, we always drove past it on our way to rental houses in Corolla because it looked old and rundown.

Things appear to be changing for the better.  The BOD has recently got some new members (qualified long term owners) who are trying to correct the sins of the past.  The entire resort just underwent an exterior renovation that looks like it was really well done.   Interior renovations are up next.  There are some other issues being worked on like the majority vote to keep it operating as a timeshare past 2025 or something.

So while the arrow was pointing down for a number of years there, I think the arrow may now be pointing up.  I think recent developments with the BOD and at the resort warrant cautious optimism, but it isn't a slam dunk yet.

Pros
- Location, location, location
- Upgraded BOD with some owners that really care about improvements-
- Good management company (SPM Resorts)
- Needed renovations planned and completed and / or taking place

Cons
- Special Assessments will probably be required for next year or two (or three) to complete needed renovations
- There are a lot of steps on some units and no real way to install elevators...so that could be a problem for older owners / travelers
- Majority vote yet to be achieved to maintain status as a timeshare community (although progress is being made)

I would imagine that trading value will remain the same or could be higher.  If SPM and the new BOD are successful in transforming the resort (what they have done so far is a big step in the right direction), BIS-Duck will likely see demand for rentals and trades increase.    But there will be a cost that comes with that for owners over the next 2-3 years.   I also don't think the MF's will stay at $670 and expect to see modest increases.

Having said that, we recently bought a couple of summer weeks, even knowing we are going to get hit with SA's.   We like the location in Duck and I like the plans of the new board members.  If the resort is upgraded and becomes a little more modern and upscale, it is a location we would be interested in staying at.   It was a risk worth taking at the price we paid.


----------



## Egret1986 (Mar 5, 2017)

nuwermj said:


> A friend of mine owns a week at Barrier Island Station in Duck. He is retiring this year and asked me whether he should sell it or keep it. Are there any TUGers who would like to offer an opinion. Is it more valuable to keep and use or to sell the week?
> 
> The unit is a 3-BR lockout, week 33 (a late August week). MF are $670 this year -- which seem very low to me. He's owned for about 15 years and has used his week maybe five times, other years he has traded in RCI.



RLS50 summed things up quite well.  Although I've been an owner since 1984, I don't feel the need to elaborate further on things regarding the resort.

1) Your friend is retiring.  He will be facing upcoming special assessments at this resort.  Like the exteriors, it will take some time to complete this massive undertaking.  How does he feel about another round of assessments?  We just had a substantial 3-year assessment, which in the end, did not cover the exterior costs.  We just had to pay another $100 per unit with our most recent maintenance fee.  Another $100 is due in June.  There is no doubt there will be more assessments.  The only question is how much for how long.

2) There is that "Sunset" clause in the resort docs.  Anyone that has attended the HOA meetings has learned that this is no easy task in getting the required 75% of votes to continue the timeshare.

3)  The maintenance fees have been kept unrealistically low for many, many, many years.  Will this change; who knows?  Sure, the BOD has changed up a bit, but there's still some real issues going on there that have not been resolved.

4)  As with many resorts (and especially the older resorts), a portion of the owners have stopped paying maintenance fees and many can't even be located.  Foreclosures are expensive.  Recently, it is my understanding, a foreclosure program has been initiated.  However, you've got to find folks that will take on these off-season timeshares, pay the maintenance fees and any special assessments.

5)  Is your friend looking to use the resort more than he has in the past?  Does he still get value out of exchanging?  If the answers are "maybe" or "no", he should consider selling.  In retirement, will he still want to travel as much as he ages?  If he does, will he now have more flexibility to take advantage of last minute rentals offered by other owners?  If "yes", he won't have the ongoing obligation and uncertainty.  If he's only interested in exchanging, there's all those ever escalating RCI exchange fees (fees for membership, exchange fees, combining fees, etc.).  Between maintenance fees, special assessments, exchange company fees; do the costs still make this work financially.   A 3BR lock-out for week 33 should get a decent number of TPU's when deposited separately.

I have loved Barrier Island Station for all the years that I have owned there.  However, I'm down to my last week of ownership.  I had the opportunity to purchase the Summer weeks that RLS50 recently bought. The were at an extremely low buy-in for two back-to-back prime weeks.  I'm just not sure that my one ownership makes sense anymore for my needs.  I passed on those two prime weeks.  No regrets.  The unknowns, for me, are just too great at this point.

Just some food for thought for your friend.  Only he can weigh the pros against the cons.


----------



## pedro47 (Mar 5, 2017)

The last two (2) posts  were right on point with their assessment . The final decision is your friend choice. This OBX oceanfront property is very valuable to someone. This  property is prime for a commercial oceanfront hotel development.


----------



## nuwermj (Mar 6, 2017)

Thank you, all, for the input.


----------



## antykay (Mar 14, 2017)

So, if the timeshare vote wouldn't pass, what does that mean to the present timeshare owners?  Would they buy us out or what?


----------



## RonB (Mar 14, 2017)

antykay said:


> So, if the timeshare vote wouldn't pass, what does that mean to the present timeshare owners?  Would they buy us out or what?



It's not that didn't pass. It's that not enough people have responded to get the necessary votes. Something like 80% of the owners must respond positively for it to pass and that has not happened yet.


----------



## rfuruta (Aug 6, 2017)

What would happen if not enough votes were collected?


----------



## Ivy (Aug 8, 2017)

rfuruta said:


> What would happen if not enough votes were collected?


 This is actually a good question..yes, what would happen if not enough votes were collected?


----------



## pedro47 (Aug 8, 2017)

Why would anyone vote who have not paid any m/f for over 3 years?


----------



## RonB (Aug 8, 2017)

If there are not enough positive votes, the property is no longer a timeshare. You would still own 1/52 of your unit, but there would be no management. No management means no scheduling of who gets to use what week, no one to pay bills, no one to do maintenance, etc. And in order to sell, I think you would need all owners to agree. There would be many other concerns as well.

Pedro is right - if someone has not been paying their fees, they would probably not vote to continue. However, they might not vote at all because they wouldn't want the possibility of BIS trying to collect. I think BIS is now trying to foreclose on the worst of these so they can take back ownership, (and voting rights). Not voting is the same as a no vote practically.

If everything fails and there is no management, I think the local govt. will eventually foreclose and sell the property to cover unpaid taxes. Then owners would get paid for their "week" from the remaining funds. That would be a complicated process and I wouldn't expect much from that process.


----------

