Are the buyers becoming too cheeky with the low ball offers?

[TravelTime]

Timeshares are similar to used cars. Some are worth more, some are worth less, and some are worth nothing (remember the Yugo in the 80's). It is the buyer who actually determines the value based upon the payment agreed upon what he/she is willing to pay......




.

A car analogy is more accurate than a house. A car loses tremendous value the minute you walk off the lot, like buying a timeshare from the developer. A car keeps depreciating like a timeshare. Timeshares have less resale value than a car (usually) because timeshares can go to zero while a car usually has some residual value.

 

[elaine]

well, until 2008, a house should've gone up--and been a "Safe" investment. I'm sure glad we bought a "base model" house with no upgrades just like we do with cars.

 

[pharmacistking]

I base all purchase on MY personal use and finances. And would I be ok giving it away for 1$. Basically all TS are not worth much more than that so purchase prices for resales should always be super low. If someone takes it for more. GREAT. If not? Did I enjoy my time with that TS? Yes? Good I didn't lose. It can go away for 1$

 

[geist1223]

What if somebody offers you 30% of what you think your house is worth?

A piece of property (real or personal) is what a willing seller will accept from a proposed buyer. Timeshare values vary month to month, day to day, hour to hour.

If someone offered me 30% "of what I thought" my house was worth my options would be accept, counter, ignore. I do not under your response.

 

[DannyTS]

A piece of property (real or personal) is what a willing seller will accept from a proposed buyer. Timeshare values vary month to month, day to day, hour to hour.

If someone offered me 30% "of what I thought" my house was worth my options would be accept, counter, ignore. I do not under your response.

In the last few years I bought and sold several timeshares, I paid and received good money for them, I know how the sausage is made. Same for real estate. I was simply trying to say there are probably more vultures out there now and wanted to see if it just happened to me or to others as well. Before, the low ball offers for a 5k timeshare were say 2500. Now the offer was zero, just to pay the transfer cost. But this has nothing to do with how desperate some owners might be to sell, there is no evidence of that yet and I agree with others, we shall see towards fall how this will be.

If the prices do go down I doubt that I will convince my wife to buy yet another timeshare but hey, I did say that before the last purchase and before the one prior to that!.

 

[ski_sierra]

If the prices do go down I doubt that I will convince my wife to buy yet another timeshare but hey, I did say that before the last purchase and before the one prior to that!.

It sounds like you have a great talent for convincing your wife. That's how I look at it

 

[DannyTS]

It sounds like you have a great talent for convincing your wife. That's how I look at it

Thank you. But I think I will have to share the trophy with many other Tuggers that are in the same situation. At least two that I am aware of.

 

[ski_sierra]

a low ball offer is fine, IMHO. You can not reply or say no. In these economic times, esp. if no other offers, some owners might take it. Doesn't hurt to try. Lot's might now just want to get rid of a TS.

I kind of feel the same way. Some of these buyers feel that they are doing the owner a favor by removing the burden of MFs. I can see that being true for resorts where you cannot recover your MFs by renting out and the purchase prices is < 5x MF. I don't feel it is accurate for resorts that sell for > 10x MF and can be rented out to recover MFs or at a profit. In that case, a discount close to 1 to 2 years of MF is more along what I would expect in this economy.

 

[rapmarks]

I saw someone advertising a rental in sw Florida on here. It is available for 10 tpus and rci exchange fee, as are many primo places in late April and May

 

[DannyTS]

I saw someone advertising a rental in sw Florida on here. It is available for 10 tpus and rci exchange fee, as are many primo places in late April and May

I do not think the temporary situation is what it is going to dictate the prices in the medium and long term. I am not saying the market will not be impacted but you cannot judge the price of a concert by the last two tickets the scalpers sell right before the doors close.

 

[rapmarks]

I do not think the temporary situation is what it is going to dictate the prices in the medium and long term. I am not saying the market will not be impacted but you cannot judge the price of a concert by the last two tickets the scalpers sell right before the doors close.

I am seeing samecweeks for rent for $800 or so on here. That is what I am pointing out

 

[pchung6]

I've been sending offers to WKV 2br Platinum since Covid, sellers don't even want to discuss price at all. If you have decent TS, i don't see price has been impacted at all because of Covid.

 

[dioxide45]

I've been sending offers to WKV 2br Platinum since Covid, sellers don't even want to discuss price at all. If you have decent TS, i don't see price has been impacted at all because of Covid.

I think what is happening here is that supply really hasn't gone up. People haven't thought about or bothered trying to sell their weeks if they didn't have them listed already. They are trying to figure out how to use the ones that they have where their reservation was cancelled. Come fall when MF bills go out, we may see an increase in supply with people trying to sell along with decrease in demand because of more people still trying to get back on their feet. One could actually say that supply right now is also lower. It was mentioned that eBay listings are way down.

 

[vol_90]

Timeshares are similar to used cars. Some are worth more, some are worth less, and some are worth nothing (remember the Yugo in the 80's). It is the buyer who actually determines the value based upon the payment agreed upon what he/she is willing to pay......




.

Mint condition Yugo worth over $4K today. I know depreciation, time value of money etc. but just a thought and much better than most timeshares

 

[GTLINZ]

Mint condition Yugo worth over $4K today. I know depreciation, time value of money etc. but just a thought and much better than most timeshares

That is funny and scary all at the same time.

In the stock market, those who panic and sell on the way down are sorry if things go back up - like with many holdings in 2009. In the stock market, those who panic and sell before things implode are grateful - like with Enron. We do not know the future, but it sounds like the risk takers are buying.

I recently reduced timeshare holdings because the MFs were growing and my advantage was shrinking. I am glad now I did - less exposure and blessed timing. I got what each was worth which was not much. One was many years of trips and and memories worth it, the other was an off season that worked out well for awhile and worth it.

I have the only TS I want to own now and hope things will work out. I hope more that those who have lost jobs will do well soon. I am trying to manage lost vacations but that does not seem as important as good heath and a healthy economy for all.

 

[Eric B]

You just answered my question. I was going to post do you think if I post the timeshares I want to give away, will I have takers?

Well, I've been waiting for a while to see what you're planning on posting....

 

[theo]

I am not planning to buy or sell any weeks in the foreseeable future, but I don't see "lowball" offers as being "too cheeky" (OP's words).

Let's be honest; many sellers base their prices, at least in part, on what they paid previously, a figure which is completely irrelevant and absolutely meaningless in the harsh reality of the resale market --- in good times or bad. Conversely, many buyers will initially offer a low figure based upon a subjective notion of "value", whether or not based upon any facts or research and whether or not realistic.

In the end, most sellers probably ask for more than they actually expect to get and most buyers probably make an initial offer less than what they are ultimately willing to pay. The "gap" in between is a matter of negotiation to get to where both willing seller and willing buyer are in agreement. No need for any raised hackles or ill will or unhelpful labels as that negotiation process unfolds.

 

[Panina]

Well, I've been waiting for a while to see what you're planning on posting....

Some really good stuff. Just have to much. Hoping next week to start.

 

[elaine]

Well, I've been waiting for a while to see what you're planning on posting....

me too! I'm assuming it's not your HGVC

 

[Panina]

me too! I'm assuming it's not your HGVC

Your wish might come true

 

[chapjim]

In the last few years I bought and sold several timeshares, I paid and received good money for them, I know how the sausage is made. Same for real estate. I was simply trying to say there are probably more vultures out there now and wanted to see if it just happened to me or to others as well. Before, the low ball offers for a 5k timeshare were say 2500. Now the offer was zero, just to pay the transfer cost. But this has nothing to do with how desperate some owners might be to sell, there is no evidence of that yet and I agree with others, we shall see towards fall how this will be.

If the prices do go down I doubt that I will convince my wife to buy yet another timeshare but hey, I did say that before the last purchase and before the one prior to that!.

The thing is, what you are calling "low ball offers" could be an indication that the market price is or will be lower than you think. You basically agree when you talk about buying if prices go down. Today's "low ball" is tomorrow's market price, maybe even today's market price.

The only difference between today's "low ball" offeror and you is timing. He wants it to happen today; you want to wait for it to happen.

 

[cbyrne1174]

Now is a good time to buy resale deeds/contracts that have a ROFR because they companies aren't exercising it like they did a few months ago and more people are wanting out of their obligation.

 

[dioxide45]

Now is a good time to buy resale deeds/contracts that have a ROFR because they companies aren't exercising it like they did a few months ago and more people are wanting out of their obligation.

Since there is no more ROFR, it would seem that there is then less demand. If the developers don't want the deeds, it takes them out of the equation. One would expect prices to go down because of it?

 

[chapjim]

Since there is no more ROFR, it would seem that there is then less demand. If the developers don't want the deeds, it takes them out of the equation. One would expect prices to go down because of it?

A deep pockets developer, if there is one, could stock up on cheap contracts hoping for a better day. It ought to be a buyer's market if someone wanted to do some speculation.

 

[sfwilshire]

I plan to make a low ball offer on a new van in the not too distant future. I won't be doing it to insult anyone, but I might get a taker in the current economic situation. If a seller makes me a counter offer, I might consider it, depending on my analysis of how likely I am to get a taker at my desired priced. If they say "heck no", I'll thank them politely and move on to the next dealer. I've played this game before. Got a great price on my current van in Florida during the 2010 economic downturn. Got another great deal on my husband's car that sat at a dealership with 8K miles on it for more than a month. The salesman was insulted by my low ball offer, but I insisted he take my phone number and ask his manager. They called me before I drove the 10 miles to home.

It's the same way with timeshares. It's not personal. Even if the offer I make is way off base, "no thanks" is the polite answer in my opinion. If you want to sell as much as I want to buy, you'll take the offer. If not, the next guy might or I might not be successful at all. It's just the game. As long as I don't waste much of your time, I don't see the harm.

The only difference is that people are giving timeshares away and not giving away brand new vans. I had planned to try to sell most of my timeshares this Spring or Summer and just keep a couple that I use. Not ready to give them away, but just don't have enough vacation time to use them all.

Sheila