# Fractional auctions - Teton Club report



## GregGH (Mar 24, 2007)

Hello

any other TUG'ers out there sat thru this auction just now ?????

Wow – 5 1/2 hour Internet  auction for a Fractional     www tetonclub.com    just ended -  as a lurker I guess I learned something.

I had to ‘lurk’ as my wife said she would kill me if I bought – a nice enough place but  doesn’t fit the next one we need to buy.  I wanted to get an idea of what RESALES might be like for fractionals.

Well- this isn’t a fractional in the truest sense –not the kind where they stick you with weeks you don’t want  in seasons your don’t care for – they just have one rule – you must own TWO weeks …so in truth it is more like a high end time share as opposed to places that make you take some from all four seasons …etc etc.

Retail prices where originally
		2 bbd		3 bbd
Winter		85k		95k
Spring		20k		27.5k
Summer	35k		45k
Fall		     20k		27.5k
Pre Xmas	62.5k		75k
Xmas		112,5k		sold
New Yrs   	sold		sold out

Internet auction – this is klunky – garbled audio and delays and loss of carrier every so often – this software that www.sheldongood.com were using has some way to go.

I found it took a lot of concentration to keep track of what they where doing – they would add weeks to the listed pool and take some away.

Skiers know no limit on what they  will pay – so that understood + the spring and fall weeks in mountains usually suck and that was born out in the prices – the summer is a true test of value ( this unit has two ski passes and golf included )

There was a bidder (#B233 ) who will have a lot of stuff to sell somewhere – he did buy quite a lot – for instance he got 1 summer and one winter for $67.5k and another summer  & fall combo  for $21 ( with reserve ) + 2 summer 3 bbd for 35k + 1 spring &1 summer for 31k + 1 summer for 16.5K …and maybe more …my notes are fading fast.

Perhaps the best deal I saw was 2 summer 25k with reserve for  phone bidder #2962.

Here is some background pages I had
	28 listings for MLS for Teton Club
 Jackson Hole MLS listings



	a real estate blog for Jackson Hole   Jackson Hole Blog

Quote from blog page ( 2/3rds way down page ) “The Teton Club has been a less than successful fractional ownership project that is now four years old. They have gone through a bankruptcy/restructuring once and are propbably looking at another soon. This fall they held a “Liquidation Auction” but I’m not sure it was a complete success. There are currently 41 listings in the MLS for ownership packages ranging from a 2br/2ba for one floating ski week and one off season week for $50,000 to a 3br/3ba Christmas week plus 2 ski weeks for $350,000. I’m not sure what sort of Buyer this appeals to b/c historically these thing rarely appreciate in value. The one thing you must have if you want to purchase here is a lot more money than you do time. The positive’s are it’s a fantastic ski in/ski out location and you get free lift tickets and golf at Teton Pines in the summer. The downside is the dues start at about $1200 per week that you use it. I think they will try and switch some of these to full ownership condominiums pretty soon. That’s what the Four Seasons did when their fractional sales went flat. Either that or be staring at Chapter 11 again. The bottom line is, if you’re interested in this project, make them an offer. A very low one.”


I could not help thinking – hmm –wonder if this guy was bidder #B233 bidder …the reason I noticed B233 –was that he had won a single Christmas week for 59k – but someone else complained that they could not get thru on a phone line and the auctioneer OPENED the BID back up !! …gee …can they do that??? …. This man and his wife could be heard screaming and not letting the auctioneer get a word in ( isn’t that the kind of owner we could do without >?? ) and was eventually the winner at 77k.

It was interesting to say the least – I have learned a lot.  It takes a TON of paperwork to enroll for an auction ( well- this one anyways ) with fedex paperwork and faxes and credit cards for earnest money and notary signatures for various forms … buy … I came close to hitting that bid button several times but somehow resisted the temptation – knowing full well the wrath of my wife could offset the joy of the good deal.  If ONLY there was a reasonable flight from DTW to Teton Village non-stop – or least two stops … but three stops – I would be found dead in the  air port.

Right at the end they threw out a large list of some really good options ( with reserves mind you )– at this point –sweat pouring down my forehead –I  was losing my self control –I had to bid – but just as I worked up the nerve to go for it –the last one was Christmas and summer for 37.5k ( with reserve –but imagine !!!! if it goes thru !!! ) --- oh lucky bider #2992 on the phone …. Because after that the owners gave up and pulled the plug …well ..it had been a LONG TIME …starting at 3:00 est and it was well after 8:00 pm … they called it a day –as only us ‘bottom feeders where bidding.

So – more to sell- maybe they will have one MORE auction –they had a auction end of last Sept the blog mentions …. Funny how this is having such a hard time selling?   I also found it interesting that the Four Seasons ( a short distance away ) also had problems selling fractionals and went  to sell them as full units and have done much better … noticed them on MLS listing – at huge prices ..?

Hope you enjoyed this –I have left a lot out – if everything was here – it would be 100 pages

Fractions and  final sales … hmm …   fractionals and re-sales … we will have some fun watching for deals on really nice 5 star units.

Now – about  the liability for bankruptcy .. hmm … better ask the lawyer the next time I see him.

Regards
Greg H


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## Steve (Mar 24, 2007)

Hi Greg,

I have spoken with the auction house in regards to both the September auction and this one.  I considered signing up...but decided it was way too much of a hassle.  

I have been to the Teton Club...and the villas are extremely nice.  However, the resort has not done well financially...as you know.  It also does not have a swimming pool which is odd for the price range and a major negative for a swimmer like myself.  

The biggest turnoff for me, however, was that you have to buy two weeks and the maintenance fees are $1700 per week (not $1200).  That's $3400 just in maintenance fees...and that's a bit much.  

It's interesting to hear your report on the auction.  I think they would do better if they had an easier auction format.

Steve


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## travelguy (Mar 25, 2007)

GregGH said:


> Wow – 5 1/2 hour Internet  auction for a Fractional     www tetonclub.com    just ended -  as a lurker I guess I learned something.



5 1/2 hours!!  Now THATS some dedicated lurking!  




> Now – about  the liability for bankruptcy .. hmm … better ask the lawyer the next time I see him.



One word on interval ownership and bankruptcy liability .... RUN!!

Very interesting report on the auction.  My experience on commercial real estate auctions is that everyone shows up with larceny in their heart and the prices end up being higher than they would be on the open market.  It appears that the same may be true in interval auctions.

Thanks for the post!


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## PerryM (Mar 25, 2007)

*Nuts*



travelguy said:


> 5 1/2 hours!!  Now THATS some dedicated lurking!
> 
> 
> 
> ...




Absolutely correct!  Many times the folks at these auctions go nuts and spend much more than the same item on the MLS for the past 3 months - nuts.


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## wdinner (Mar 25, 2007)

*Great Post*

Thanks for the in-depth update.  I had looked at the process and it was too much work for something I really didn't need.


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