Help doing the math???

[FlorenceFamily]

We have settled on the HGVC system for our first TS. Our reseller has found an 8400 Point Platinum week at HGVCSea World. She says it will probably take $14,500. to get over the FROR. Is this a fair price?
Thanks for all of your help...I am so glad I found TUG before I bought!

 

[tombo]

Doesn't sound like a good deal to me. You can buy them a lot cheaper off of e-bay and most developers aren't ROFR'ing in this economy. Developers have plenty of inventory and few buyers, so why would they want to buy more inventory using ROFR? Never raise your offer worrying about ROFR. Buy HGVC as cheap as you can and if it doesn't pass ROFR buy another one as cheap as you can. There will be hundreds of them for sale in the next few months. I personally will never again buy from a resort that has ROFR, but if you have to have HGVC here are some current auctions on e-bay, and most don't have a single bid.


http://cgi.ebay.com/HGVC-Hilton-Sea...39:1|66:2|65:12|240:1309&_trksid=p3286.c0.m14

http://cgi.ebay.com/HGVC-HILTON-GRA...39:1|66:2|65:12|240:1318&_trksid=p3286.c0.m14


http://cgi.ebay.com/Hilton-HGVC-at-...39:1|66:2|65:12|240:1308&_trksid=p3286.c0.m14

http://cgi.ebay.com/Hilton-HGVC-at-...39:1|66:2|65:12|240:1308&_trksid=p3286.c0.m14

 

[sernow]

If you'd look around on some of the resale sites (like myresortnetwork) you might find that some reputable resellers are selling the same amount of points at this resort for less. I've heard that Seth Nock is knowledgeable in this area.

I agree with Tombo about not worrying about ROFR. If you do, you are assured of paying too much.

 

[Talent312]

Its a bit high, not outrageously so, but you could prob'ly do better. We recently heard someone say that that they got a platium-week for ~$1.4 per point.

OTOH, it wasn't that long ago that it took ~$1.8 per point to score a platinum unit and more in Hawaii. Thus, I'd say that your seller is about six-months behind the economy and needs to be re-educated.

BTW, there are many of us here who'd endorse your selection of Hilton... What they lack in diversity among their locations, they make up for in flexibility and useability.

 

[capjak]

a 8400 point contract is more of a specialty item as it represents a 3 bedroom in Platinum season in Orlando and will command a higher $/point value than 7000 or 5000 as the Maintenance fee per point is lower.

I am not an expert but research these, I believe 14500 is in the ballpark maybe you could go $1000 less if you can find someone to sell it to you for that.

 

[Bill4728]

Its a bit high, not outrageously so, but you could prob'ly do better. We recently heard someone say that that they got a platium-week for ~$1.4 per point.

OTOH, it wasn't that long ago that it took ~$1.8 per point to score a platinum unit and more in Hawaii. Thus, I'd say that your seller is about six-months behind the economy and needs to be re-educated.

BTW, there are many of us here who'd endorse your selection of Hilton... What they lack in diversity among their locations, they make up for in flexibility and useability.

a 8400 point contract is more of a specialty item as it represents a 3 bedroom in Platinum season in Orlando and will command a higher $/point value than 7000 or 5000 as the Maintenance fee per point is lower.

I am not an expert but research these, I believe 14500 is in the ballpark maybe you could go $1000 less if you can find someone to sell it to you for that.

Most platinum contracts at LV or Orlando are for 7000 pts so a 8400 pt unit is rare, and therefore more money. You could likely find a much better price/pt contract if you looked for a 7000 pt week.

 

[tombo]

If you can buy 5000 points for $5000 or less, you can buy 2 5000 point packages for $10,000 or less. 10,000 points is 1600 points more than the package you are looking at and about $5000 less in outlay. So if you pay a little more per point annually for having 2 separate packages, it should still take a long time to cost you the $5000 you saved on purchase. Also if you buy one smaller package and love it you can always buy more points. If you buy a big package and for some reason you don't like it, good luck on re-selling your HGVC points in this economy.

 

[yumdrey]

I do agree with tombo. Try small package first, and if you like it, you can add more points anytime. Smaller package is easier to sell too.

 

[PigsDad]

First off, I would suggest that this thread is moved to the HGVC forum, for future searches if nothing else.

Also, as for the comment about two 5000 point packages. The only warning about that would be the significant extra MFs. At Seaworld, a 8400 (Platinum) point package MFs would be about $900, whereas a 5000 (Gold) point package MFs are about $750. So in the comparison, the 10K points would run the owner about $1500/year, vs. the $900/year. As maintenance fees go up in the future, that difference will only increase.

Just something to figure into the calculation as to what would work best in your situation.

Kurt