Need Advice on Sale of Hilton T/S

[ronmhjr]

My wife and I recently decided to sell our HGVC t/s (since we used our Marriot T/S more), and listed it on Redweek. We quickly received an offer from an individual whom we later found out was a broker. Finally, we negotiated a price of $9,000 net to us, which we were happy with. When we negotiated the final price, we found out that there are two brokers involved in this transaction. This seemed odd to us, but we went ahead and had them send a contract to us. We received the contract today and realized that the purchaser is one of the brokers (we recognized their name b/c we bought this t/s through them). The total commission for the two brokers will be $1,800 spilt 50/50, with total purchase price $10,800 for 7,000 points. Also, during this transaction also we were led to belive there was a third party who was buying from the 2nd broker. (Please see e-mail)

Excerpt from the broker that contacted me:

The buyer will go to $9000, we just dropped the commission a little and got
him to come up a couple hundred dollars. And after speaking with the other
broker, he said they are only pulling around $7000 on ebay and if we can get
you $9000 now instead of $8500 in a couple weeks.


We haven't signed anything yet. We would like your advice--does this arrangement seem to be above-board?

Also, should we just be happy and let this go even though we feel a little deceived?

 

[yumdrey]

I think you need to contact Seth or Judy to sell your HGVC TS. They are one of the most reputable HGVC brokers and many tuggers recommend them. I want to suggest you to work with reliable brokers.

 

[myip]

You can try selling it on ebay. Have you check the price sold on ebay? $9000 is pretty good deal for the buyer.

 

[brother coony]

You stated that you were satified and happy with the $9000 net to you and your wife, once you are getting your $9000.net that you were happy with should be your only concern, Brokers has to make a living, its not that easy right now, afther you get your $9000. send both of them a thank you card

( Note)I am a Insurance broker no Realestate

 

[Bill4728]

IMHO, this is a very bad deal for you.

$9000 for 7000 pts is < $1.30/pt which is the lowest I've ever seen for the sale price of Platinum HGVC pts.

They ( the brokers ) are really streching the truth if they tell you that $9K/7000 pts is about the going price on Ebay. The lowest price I've seen which pasted ROFR was $1.40/pt ( which would be a net to you of $9,800)

Personal I don't have a problem paying a commission to a broker. But when a broker buys directly from a seller, they DO NOT get a commission.

If you really need to sell it fast, I'd offer to sell it to them with a net to you of ~$10,000.


EDITED TO ADD;
Historically, the price which most Tugger suggest is a fair price for HGVC platinum pts in either LV or Orlando is about $1.60-$1.80 ( we used to say <$2.00). Anything less is a steal.

So the fact that the brokers want you to net <$1.30/pt is just too low.

 

[Talent312]

$9000 for 7000 pts is < $1.30/pt...
The lowest price I've seen which passed ROFR was $1.40/pt (...$9,800)
... a fair price for HGVC platinum pts in either LV or Orlando is about $1.60-$1.80...
... I'd offer to sell it to them with a net to you of ~$10,000.

Edited for comparison purposes.

Sure, its a better deal for the Brokers than for the Seller. But does the Seller really want to walk over a difference of $1K? Is getting that "fair price" worth waiting for? That's a question the Seller must ask himself.

Think about this: That $1K is likely about the same amount as 1-year's MF, and January 1st is rapidly approaching. I might be motivated to avoid paying that. If I was motivated to sell, I might say, "A bird in the hand is worth two [brokers] in the bush."

 

[Bill4728]

Edited for comparison purposes.

Sure, its a better deal for the Brokers than for the Seller. But does the Seller really want to walk over a difference of $1K? Is getting that "fair price" worth waiting for? That's a question the Seller must ask himself.

Think about this: That $1K is likely about the same amount as 1-year's MF, and January 1st is rapidly approaching. I might be motivated to avoid paying that. If I was motivated to sell, I might say, "A bird in the hand is worth two [brokers] in the bush."

True, But brokers are required to disclose that they are buying this for themselves and not just brokering a deal.

IMHO, What they did was kind of slimey

 

[aliikai2]

Does it matter who is buying???

My wife and I recently decided to sell our HGVC t/s (since we used our Marriot T/S more), and listed it on Redweek. We quickly received an offer from an individual whom we later found out was a broker. Finally, we negotiated a price of $9,000 net to us, which we were happy with. When we negotiated the final price, we found out that there are two brokers involved in this transaction.

It seems to me that if your happy with the $9000, why are you concerned about somebody else possibly making a few dollars on this when they resell it??

This seemed odd to us, but we went ahead and had them send a contract to us. We received the contract today and realized that the purchaser is one of the brokers (we recognized their name b/c we bought this t/s through them). The total commission for the two brokers will be $1,800 spilt 50/50, with total purchase price $10,800 for 7,000 points. Also, during this transaction also we were led to belive there was a third party who was buying from the 2nd broker. (Please see e-mail)

Excerpt from the broker that contacted me:

The buyer will go to $9000, we just dropped the commission a little and got
him to come up a couple hundred dollars. And after speaking with the other
broker, he said they are only pulling around $7000 on ebay and if we can get
you $9000 now instead of $8500 in a couple weeks.

The sales price of $10800 is $1.54 per point, and your netting $1.286 per point, seems reasonable to me. Each of these brokers get paid for what they know and having a $9000 check in hand today is way better than maybe getting a little more next year.

We haven't signed anything yet. We would like your advice--does this arrangement seem to be above-board?

Also, should we just be happy and let this go even though we feel a little deceived?

JMHO,

Greg

 

[ronmhjr]

First off, I would like to thank everyone with their comments. I tend to agree with all of them; that is why we were on the fence. I have decided to counter back to the broker and see what happens.

The problem I have with this whole transaction is being lied to numerous times:

1. Made to believe that there was a third party buyer willing to pay $10,800 for the week. This affected my decision making on accepting $9,000 net because I felt that I would lose the sale if it went over $11,000. In the end the broker will have only paid $9,900 for the week because he is paying himself a $900 commission.

2. Was told that this week is only pulling $7,000 on Ebay, when I told them I would try to sell it on Ebay. If that were the case, why would a broker pay $9,000 for that week? Come to find out that this broker has the same week listed on Ebay themselves for a lot more them $7,000.

3. Why was the commission lowered? They would just end up paying themselves more money. I know this individual has a pretty good idea at what point that Hilton will buy this week back. I know ROFR changes on a daily basis. But it is a game worth playing because it is win - win for the broker. Hilton takes the week, they get a commission; and if they do not, they get a week that is below market that can be sold for more.

4. Once all the facts were made known to me, I realized that the agent/broker who was supposed to be looking out for my best interest was not but was truly working for the other broker. Can we say conflict of interest!!!


This may come back to bite me, but sometimes in life you have to do things based on principles and this happens to be one of them.

Ron

 

[ronmhjr]

Just an update:

I just got off the phone with a helpful lady at Judi's office who told me that the price offered would most likely be taken by Hilton since they are buying them back. She said that the last one taken by Hilton was $11,750 two months ago. The last one that was waived was for $12,000.

Thanks again for the comments and suggestions!