[ 2020 ] Buying through Redweek how do I CYA?

[Warmwishes]

Just had my offer accepted for a timeshare on Redweek, what do I need to do to CYA, this is my first Rodeo. I'm in Canada timeshare is in Mexico.

 

[vacationtime1]

The two most important things:

Get an estoppel -- one issued by the HOA, not the seller -- verifying what you are buying (season, # bedrooms, etc.), that there are no loans or assessments, and that MF's are current.

Use a truly independent escrow agent.

Because you asked only about CYA, I won't comment about RTU vs. deed, price (Mexican timeshares are generally valueless), or "deal" terms.

 

[Warmwishes]

Sorry, what is HOA? What is the best way, or how do I use the independent escrow agent.
vacationtime please elaborate on your last line, this is all new to me all information is valuable, thanks.

 

[vacationtime1]

HOA =Home Owners' Association: the entity that ultimately controls the project and in actuality hires the management company. It is theoretically controlled by a vote of the owners, but in reality, is usually controlled by the developer -- who hires itself or a controlled entity.

LT Transfers is well regarded here as an escrow/transfer agent. They do the paperwork (deeds or transfer documents, interface with the resort, etc.).

I don't know much about Mexican timeshares nor do I know what you intend to purchase. But I do know from comments here that few have any resale value. I am concerned that if you don't know what you are buying, how it works, and what it is really worth, you may be making a bad purchase.

 

[dioxide45]

The best way to CYA is to know what you are buying and get an estoppel. You may be getting what you are buying, but are you buying what you really want and for what it is really worth?

 

[bogey21]

I don't know zip about Mexican TimeShares so my advice is all financial. Number One: Buy cheap. Hopefully for next to nothing. And Number Two: If you ever want out, just stop paying MFs. There is nothing they can do as you live in Canada and the TimeShare is in Mexico...

George

 

[Warmwishes]

Thanks guys, for the info and the patience. It sounds like I'm on the right track, I will need to request the HOA version of the estoppel and make sure the MF are up to date.
Value wise, I have been to the resort and sat through a presentation, not too painful, lol, We really like the place.
I am basing the value on what it would cost me to vacation there or something similar best bargain prices I can find, including sitting through another presentation, then compare to my annual cost of the resale, all costs figured in, as well as comparing to the price the resort wants for their best deal timeshare. So far all looks good.
I always feel better buying something, rather than being sold something.

 

[vacationtime1]

Thanks guys, for the info and the patience. It sounds like I'm on the right track, I will need to request the HOA version of the estoppel and make sure the MF are up to date.
Value wise, I have been to the resort and sat through a presentation, not too painful, lol, We really like the place.
I am basing the value on what it would cost me to vacation there or something similar best bargain prices I can find, including sitting through another presentation, then compare to my annual cost of the resale, all costs figured in, as well as comparing to the price the resort wants for their best deal timeshare. So far all looks good.
I always feel better buying something, rather than being sold something.

What have similar units sold for on the resale market? That is the measure of fair market value.

The developer price is irrelevant -- and is likely a large multiple of what the same unit sells for on the resale market.

What are you buying and what are you paying for it?

 

[dioxide45]

Also consider that outside of a very small few, most Mexican timeshares are worth $0. Meaning, you should be getting it for free and perhaps the seller paying closing costs. Your only costs would be ongoing maintenance fees.

 

[Warmwishes]

How can I find out what similar resales have sold for? I am trying to buy a biannual winter resale with 25 years left, 12 usable, for less than $6500 half of the asking, 25% of developers asking, I will have the ability to use it 12 times, and at what I have been paying for our vacations, if I use it 4 times it's paid for, and I know what kind of vacation I will be getting, maintenance fees are under $700.
I am willing to pay a "little"extra for a vacation I am 99% sure will be good, rather than get a near free holiday from hell, I can't just try again next month, I'm luck to get away every second year.
I don't get how a Mexican TS is worth $0, I get there are give aways out there but those usually have ridiculous MF and people just want out.
All that said, I still don't want to over pay or get scammed.
Thanks again for the advice.

 

[CPNY]

How can I find out what similar resales have sold for? I am trying to buy a biannual winter resale with 25 years left, 12 usable, for less than $6500 half of the asking, 25% of developers asking, I will have the ability to use it 12 times, and at what I have been paying for our vacations, if I use it 4 times it's paid for, and I know what kind of vacation I will be getting, maintenance fees are under $700.
I am willing to pay a "little"extra for a vacation I am 99% sure will be good, rather than get a near free holiday from hell, I can't just try again next month, I'm luck to get away every second year.
I don't get how a Mexican TS is worth $0, I get there are give aways out there but those usually have ridiculous MF and people just want out.
All that said, I still don't want to over pay or get scammed.
Thanks again for the advice.

If you don’t get how a mexico TS is worth $0 don’t buy what you’re buying.

What are you buying and how much are you paying?

 

[RNCollins]

How can I find out what similar resales have sold for?

Hi @Warmwishes,

This tool on the redweek website may be helpful:

What's my timeshare worth? | RedWeek

If you are considering selling or renting your timeshare, you need to find out what it is worth. Our free tool makes it easy to see what other owners are asking for their units at your resort.

www.redweek.com

MyResortNetwork posts the amount that timeshares were sold for on their site. The sold amounts seem high.

Mexico Timeshares Sold on www.MyResortNetwork.com by owner or agent

All of these Mexico timeshares were sold on www.MyResortNetwork.com by owner or by the agent of the owner.

www.myresortnetwork.com

 

[vacationtime1]

Hi @Warmwishes,

This tool on the redweek website may be helpful:

What's my timeshare worth? | RedWeek

If you are considering selling or renting your timeshare, you need to find out what it is worth. Our free tool makes it easy to see what other owners are asking for their units at your resort.

www.redweek.com

MyResortNetwork posts the amount that timeshares were sold for on their site. The sold amounts seem high.

Mexico Timeshares Sold on www.MyResortNetwork.com by owner or agent

All of these Mexico timeshares were sold on www.MyResortNetwork.com by owner or by the agent of the owner.

www.myresortnetwork.com

Remember -- these are asking prices. Both of the above are asking prices.

Neither Redweek nor MRN have any way of knowing actual sale prices. They only know that the listing is closed; neither queries sale prices (based on my personal experience selling with each). Their links to sold timeshares therefore show the last listing price -- not the actual sale price -- on closed listings.

 

[Warmwishes]

Thank you for the link to the tools they are great, they put things in perspective. Where would a person start an offer compared to asking price, 10%?

 

[vacationtime1]

Thank you for the link to the tools they are great, they put things in perspective. Where would a person start an offer compared to asking price, 10%?

The asking price is irrelevant; many selling timeshares have no idea as to the fair market value of their unit.

You need to determine what you are willing to pay; your goal is to buy at that price or below. If you start a bit below that number, you may end up where you want. Remember, there are many more sellers than buyers, so you will (eventually) find a seller who is willing to sell at a reasonable price.

 

[vacationtime1]

If you don’t get how a mexico TS is worth $0 don’t buy what you’re buying.

What are you buying and how much are you paying?

To the OP: Where are you proposing to buy? Why do you think it is worth more than zero?

 

[Warmwishes]

Garza Blanca PV(Tafer) is what we are looking at. I look at at our vacation accommodations as having a cost (value), even if you stay with family for free there is a cost.
We have found a few places we like, and as I said we don't like taking chances because if you have a bad holiday you will never get that time back and have to wait a couple years to get away again. We have checked every avenue for best prices including bargain vacation sites and sitting through TS presentations, and that is what we base holiday value on, cost per nite for accommodation.
So TS cost divide by years of use plus MF gives me my cost for my 7 nite stay. If my TS cost is $0 and I still pay $1000 or more MF it is still a cost and I am no farther ahead. I understand generally MF will rise, so will the $1000 ones, but if that gets out of hand that will be when I walk away and cut my loses.
So unless some entity just takes my TS for nothing there is value to me.

 

[Priscilla]

Garza Blanca PV(Tafer) is what we are looking at. I look at at our vacation accommodations as having a cost (value), even if you stay with family for free there is a cost.
We have found a few places we like, and as I said we don't like taking chances because if you have a bad holiday you will never get that time back and have to wait a couple years to get away again. We have checked every avenue for best prices including bargain vacation sites and sitting through TS presentations, and that is what we base holiday value on, cost per nite for accommodation.
So TS cost divide by years of use plus MF gives me my cost for my 7 nite stay. If my TS cost is $0 and I still pay $1000 or more MF it is still a cost and I am no farther ahead. I understand generally MF will rise, so will the $1000 ones, but if that gets out of hand that will be when I walk away and cut my loses.
So unless some entity just takes my TS for nothing there is value to me.

Dear OP, don’t be afraid to offer less money for a timeshare resale. Chances are the seller just wants out and you will be doing them a huge favor to take over the ongoing MF payment. I have low balled several listed prices and actually got several favorable responses back. Believe it or not. An example is something listed for $3k, which I got the seller to agree to sell it for $100.

Don’t be in a hurry. I get where you are coming from but these things are liabilities, not assets. They smell of bills and fees. You may buy and pay MF, and never even get the desired week that you want to use. Good luck to you and save some of that money now while you can.

 

[CPNY]

Dear OP, don’t be afraid to offer less money for a timeshare resale. Chances are the seller just wants out and you will be doing them a huge favor to take over the ongoing MF payment. I have low balled several listed prices and actually got several favorable responses back. Believe it or not. An example is something listed for $3k, which I got the seller to agree to sell it for $100.

Don’t be in a hurry. I get where you are coming from but these things are liabilities, not assets. They smell of bills and fees. You may buy and pay MF, and never even get the desired week that you want to use. Good luck to you and save some of that money now while you can.

I see 2 listed low. And then I’m seeing a ridiculously high one bedroom lol

 

[Priscilla]

I see 2 listed low. And then I’m seeing a ridiculously high one bedroom lol

The 1 bedroom seller isn’t ready to low ball. Those two were initially listed with higher selling prices but they reduced the prices. Not sure why. I have a contract for one of those so we shall see how it goes.

 

[CPNY]

The 1 bedroom seller isn’t ready to low ball. Those two were initially listed with higher selling prices but they reduced the prices. Not sure why. I have a contract for one of those so we shall see how it goes.

Excellent. Use LT transfers if you can. Redweek closing is a rip

 

[sbarsanti]

Just had my offer accepted for a timeshare on Redweek, what do I need to do to CYA, this is my first Rodeo. I'm in Canada timeshare is in Mexico.

I am finishing the purchase of a timeshare in Mexico through Redweek. Mine was a verified Redweek week so I know it is legitimate. I'm very happy with my purchase and if you will use the weeks you paid for you should enjoy some great vacations. I think Mexican timeshares on the resale market offer a great value and opportunity. Enjoy your time!

 

[SML123]

Just had my offer accepted for a timeshare on Redweek, what do I need to do to CYA, this is my first Rodeo. I'm in Canada timeshare is in Mexico.

How did your purchase go? I am also looking to buy a Garza Blanca PV resale. Id like to know how the process went for you and who did you use for the transfer.

 

[Marathoner]

Don't know anything about Garza Blanca PV but the penthouse suite photos on their website looks great.

 

[Beach57]

How did your purchase go? I am also looking to buy a Garza Blanca PV resale. Id like to know how the process went for you and who did you use for the transfer.

I bought here six months ago via an online bankruptcy auction site. The transfer fee was waived for me. The whole process went decently. Currently, an owner whose mortgage is paid up, may give up their membership at any time. This “get out of jail free” is important to me. Our first visit is next December. The current price per point is around 49 cents. Keep that in mind. I have 7600 yearly points, and I can pay half of the AI fees or half of extras like spa services with my points. I will trade or rent out what I don’t use. The resort has an excellent reputation, and is tops in the area. Good luck with your search!