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Considering buying a timeshare, please help

Henkemeyer

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Hi all,

I'm very new to timeshares, and I have an offer that I don't think will be on the table for very long. My mom knows a lady who recently got a divorce, and she’s wanting to get out of their timeshare. From all appearances, she seems honest and very negotiable. How can I find how good of a deal this really is? Are there any BKMs when it comes to doing the homework on this? Is there an appraisal type of site out there?

This is what I know so far about what is being offered:

  • The “home resort” is Villa Del Palmar in Puerto Vallarta, MX (and also it sister resort Villa Del Palmar in Cabo San Lucas)
  • The size of the unit is a studio (but she did say that in many cases, we can trade up to a bigger room)
  • It is 1 week per year
  • It is Red season (floating)
  • There are 23 years remaining
  • The original price in 2001 was $12,600
  • Two years ago she almost sold and was told the value at that time was $700-$10000
  • Her initial offer to me was $5000.
  • She has lowered her offer to $3500
Thanks for your help,

:)

David
 

Denise L

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Welcome to TUG!

I don't know much about the timeshares in Mexico, but the first thing I would do is google the resort name and look for "comps" from others selling resale. Check the TUG Classifieds, myresortnetwork.com, redweek.com, ebay, and other Internet sites to get a sense of what it might be worth. My guess is that it is worth a lot less than the current offer, but that is purely off the top of my head.

You will need to think about whether you want to go to Mexico in a studio, and think about the annual maintenance fees. Even if she gave you the timeshare, you'd need to pay the annual fees every year to use it or exchange it. Think about places you would like to travel to, how often, etc. Hang out on this site for a couple of months and learn about timesharing. You may find that you need at least a full 1 bedroom or a 2 bedroom for your travel needs.

Good luck!
 

AwayWeGo

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[triennial - points]
"Not On The Table For Long" Is Mox Nix.

That is to say, if you like that timeshare or some similar timeshare situated nearby, you won't exactly be looking for a needle in a haystack.

Resale timeshares are a buyers' market & that's not likely to change. So there's no rush to buy (a) this particular timeshare or (b) any particular timeshare. It's OK -- in fact it's advisable -- to take your time & investigate widely (& semi-deeply) & see if this is a good deal for you.

That said, if all you're paying is $3,500 you don't have much on the line if that timeshare turns out to be not your cup of tea. (But if it's $3,500 plus taking over the seller's payments, the appropriate response is No Thanks. The only ongoing payments should be for annual maintenance fees, not for buying the timeshare.)

If the location is already a place that you like & want to go to, that's a positive sign. If it's just some timeshare that happens to be in that place, you might want to re-think the deal & focus on a location where you actually like vacationing. It's a long way from Forest Grove OR to Puerto Vallarta.

When all is said & done, however, you'll be miles ahead by buying your timeshare resale instead of buying at full freight from some timeshare company.

Keep in mind also that the true cost of timeshare vacationing is those ongoing annual fee payments, which keep on coming year after year even when you get your timeshare el cheapo or even el freebo.

And 1 more thing -- Welcome To TUG.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

 

Kola

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Honestly, David, I wouldn't touch a right-to-use studio in Mexico even for $300. There must be hundreds of better offers on e-bay, just keep looking. The figures you quoted are unrealistic. Ask yourself what is it that would attract you to this resort ? This studio unit would have a very limited trade power. Don't do it !

K.
 

gmarine

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Talent312

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Not only may it not to be worth $3500 (athough its possible), you say that she wants to unload their TS, meaning what? Does that her ex still has some right, title or interest in the TS? Is she acting on behalf of them both or is he joining in?
 
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Patri

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I bet the offer is going to be on the table for a long time. The poor thing probably does not know how to get rid of it. Selling to an acquaintance would be easiest.
I'd walk away. You don't know enough about timesharing yet. The maintenance fees are a biggie. So is the size.
Don't feel guilty passing up this 'bargain.'
Tell the gal to come here for advice on how to sell.
 

yumdrey

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It's too expensive! I would not buy any studio unit because it has really poor exchange power if you want to use RCI or II. If you are not going to that resort every year for yourself, don't buy it. Even if you love Mexico and love that location, don't buy it, there are many cheaper deals.
 

Ddee555

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I wouldn't buy a studio...

Hi David,

I'm not as experienced as some of my fellow tuggers are, but personally, I would never buy a studio as they tend to be poor traders when exchanged for other resorts I do want to vacation to. Puerto Vallarta and Cabo are very nice places, but how realistically, are you going to visit there? So, possible exchange-ability should be thought about here...

Also, although some people are fine with purchasing a timeshare at a resort in Mexico, for me, I will always be hesitant to buy any timeshare in a foreign country--it just seems to have a lot of inherent risks (i.e, management companies might change, country stability, laws changing, building code standards less than U.S., less control over future fee hikes, etc.).

Those are my two cents. Hope it helps. :)
 

aliikai2

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What is a bkm ?

There are many types of ownerships in the UVC, ( Universal Vacation club)
A studio winter week might be worth $500 including closing and transfer fees, summer under $250.

If you are looking to use an ownership in Mexico, then these can be very nice. As for trade value, very few Mexican resorts trade well into other quality resorts in the US.

Here is an Ebay auction where the seller is only asking $25 and is willing to pay all the closing and transfer costs of 2 summer weeks.

http://cgi.ebay.com/PUERTO-VALLARTA...ryZ15897QQssPageNameZWDVWQQrdZ1QQcmdZViewItem


Here is another for 2 winter and 2 summer with an opening bid of $1 that didn't sell last time it was listed.

http://cgi.ebay.com/MEXICO-Timeshar...ryZ15897QQssPageNameZWDVWQQrdZ1QQcmdZViewItem

Timeshares lose about 90% or more of their value as soon as the ink drys on the check. In this case, more like 99%.

We own lots of Mexican weeks, which we use or rent and love to travel to Puerto Vallarta, but unless you plan to use an ownership at the resorts in Mexico, you would probably be unhappy with the trade power.

jmho,

Greg
Hi all,

I'm very new to timeshares, and I have an offer that I don't think will be on the table for very long. My mom knows a lady who recently got a divorce, and she’s wanting to get out of their timeshare. From all appearances, she seems honest and very negotiable. How can I find how good of a deal this really is? Are there any BKMs when it comes to doing the homework on this? Is there an appraisal type of site out there?

This is what I know so far about what is being offered:

  • The “home resort” is Villa Del Palmar in Puerto Vallarta, MX (and also it sister resort Villa Del Palmar in Cabo San Lucas)
  • The size of the unit is a studio (but she did say that in many cases, we can trade up to a bigger room)
  • It is 1 week per year
  • It is Red season (floating)
  • There are 23 years remaining
  • The original price in 2001 was $12,600
  • Two years ago she almost sold and was told the value at that time was $700-$10000
  • Her initial offer to me was $5000.
  • She has lowered her offer to $3500
Thanks for your help,

:)

David
 
Last edited:

Bill4728

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Hi David,

I'm not as experienced as some of my fellow tuggers are, but personally, I would never buy a studio as they tend to be poor traders when exchanged for other resorts I do want to vacation to. Puerto Vallarta and Cabo are very nice places, but how realistically, are you going to visit there? So, possible exchange-ability should be thought about here...

Those are my two cents. Hope it helps. :)

I agree with not buying a studio. The smallest TS I'd buy is a 1 bd. ( except if you're buying in a city like NYC or SF)

Most people buy a TS so they don't have to vacation in a "hotel" room. Why would you buy a studio at someplace in Mexico when most of the TS offered for sale are 1-2 bedrooms?
 

applegirl

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Welcome to TUG and thank goodness you found us!

Don't do it. Your trade power will be very week as many have stated and you need to investigate the timeshare vacation concept for a couple of months before you buy anything!

We love our Marriott timeshare. It's very easy to trade "up" to a 1 bedroom with our studio portion of our lock-off unit (we can get two weeks a year for our one week when we split it).

Best of luck!

Janna
 

Henkemeyer

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Thanks to ALL of you

Wow -- thanks to all of you folks for your honest and very enlightening replies! This forum has exceeded my expectations greatly! And last night, my wife and I had convinced ourselves that this was a good deal. However, we had nothing to compare it against, and that's always been my biggest concern. Now we have information that is more valuable than gold, thanks to all of you. I will politely tell her thanks but no thanks.

This begs my next question: if my wife and I want to make an investment into our families vacationing future, what route should we go. We have an 8 yr old and a 2 yr old. We enjoy Disney, we enjoy National Parks, and we LOVE Hawaii. Is it worth it for us to seek out a TS on ebay or whatever to save us money down the road? Or, as years go by, should we just look into buying unused weeks on a year by year basis?

Thanks again (and again and again and again!) :)

David
 

MOXJO7282

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Wow -- thanks to all of you folks for your honest and very enlightening replies! This forum has exceeded my expectations greatly! And last night, my wife and I had convinced ourselves that this was a good deal. However, we had nothing to compare it against, and that's always been my biggest concern. Now we have information that is more valuable than gold, thanks to all of you. I will politely tell her thanks but no thanks.

This begs my next question: if my wife and I want to make an investment into our families vacationing future, what route should we go. We have an 8 yr old and a 2 yr old. We enjoy Disney, we enjoy National Parks, and we LOVE Hawaii. Is it worth it for us to seek out a TS on ebay or whatever to save us money down the road? Or, as years go by, should we just look into buying unused weeks on a year by year basis?

Thanks again (and again and again and again!) :)

David
If you didn't have two young ones, I'd say don't even buy, just rent from the wealth of TS rentals you will find on Redweek, TUG, ebay and a dozen other sites. However since you mentioned those 2 precious little ones, if you need to follow the school calendar and travel during summer and school breaks, then ownership may be the way to go.

Personally I have a Marriott preference, because I like the security of their consistency, and accountability, more so than a Mexico program, or any of the 1000's smaller TSs out there. You will pay more, but in my opinion get more.

Anyway, I'd look at a lock-off unit that can be split and used twice to really stretch your vacation dollar. You don't say where you reside, but if its the east coast, I'd recommend Marriott Manor Club in Williamsburg because its the best IMHO and least expensive LO that gives you an entry point into the Marriott system.

A well planned plat week could get you everything you needed when you needed it. This will definately cost you more upfront, but in the long run, I believe will give you the best overall value.

Regards.
Joe
 

vacationtime1

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I agree with Joe that timeshares and small kids work extremely well together. You have more space than a hotel, you have a kitchen, and when they're happy, we're happy.

I would rent a couple of times before buying so you can assess different levels of amenities and quality to see what you need and what you like. If you do choose to buy, Marriott is a great product and Williamsburg is a good and a cost/effective location; definitely buy a lockoff for maximum flexibility.

The market is way down right now, so whichever route you take, you will find many possibilities at good prices.
 

Henkemeyer

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BKM == Best Known Method

Oops, you caught me using an acronym from work. BKM stands for Best Known Method. Or, in otherwords, most widely accepted best way to do something.
 

Henkemeyer

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More information

The seller just called, and told me that the maint fees for this unit are $393. Why do maint fees vary so greatly? Does it depend on how much you pay up front??? Anyway, The math seems attractive: $3500 over 23 years comes to $152 per year. Add to that the maint fee of $393, and we would get 1 week at the resort for $545.

How much, I wonder, would we pay if we didn't own a TS and just said "lets go spend a week there"?

I do acknowledge that the unit is just a studio, so there's no denying that that is an unfortunate minus.

I will most likely say no thanks, but, I'm just trying to run the numbers, and it seems that $545 seems like a great deal.

The other truth of the matter is, however, that I'm "forced" to somehow deal with $552 each year, by either flying there and using it, flying somewhere else and paying an exchange fee (and hoping for an acceptable exchange), or banking it, or selling that year's week to someone else.

The big unknown, for me, is this unit's exchange value. Is there a way for me to see what this would exchange for in, say, Hawaii, or Orlando, or San Diego?

Thanks again,

David
 

vacationhopeful

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Rent for awhile. Too many times newbies fall in love with a price on eBay ($1) and find out that even moochers want you to pay them to vacation there.

There is a number of chains who manage resorts - Marriotts, Hyatts, Wyndham, Disney, Hilton, Starwood, etc. There are independants (VRI is the largest), too. There are fixed weeks, floating weeks, points systems. There are exchange companies (RCI and II are the 2 majors) and the independants (SFX, Redweek, DAE, VRI*ety, etc).

There are the locations - where you live and can drive most years. Those locals where you can only go once in awhile (on the east coast, Hawaii; on the west coast, Carribbean). Europe. Asia.

So. like any opportunity to spend money (invest is not a good, factual word to associate with a timeshare expenditure), investigate and research for many hours before signing contracts and purchasing a yearly timeshare.

Read, investigate, ask questions and RENT.

JMO,
 

vacationtime1

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Maintenance fees vary from resort to resort based on location, quality of resort amenities, and quality/competence/honesty of management. They change from year to year -- and never downwards. You should assume a COLA (or greater) increase year to year.

Maintenance fees within a resort generally vary by size of unit; they are usually proportionate to square footage (although that could be different in Mexico).

If MF's are low, it is sometimes a result of not sequestering sufficient reserves for refurbishment or repairs. When the inevitable happens, owners get socked for SA's (special assessments) which can be substantial.

If you go forward with the transaction (which you probably shouldn't), you should also verify that the $393 figure is the current MF and not that of a previous year.
 

Denise L

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The seller just called, and told me that the maint fees for this unit are $393. Why do maint fees vary so greatly? Does it depend on how much you pay up front??? Anyway, The math seems attractive: $3500 over 23 years comes to $152 per year. Add to that the maint fee of $393, and we would get 1 week at the resort for $545.

How much, I wonder, would we pay if we didn't own a TS and just said "lets go spend a week there"?

I do acknowledge that the unit is just a studio, so there's no denying that that is an unfortunate minus.

I will most likely say no thanks, but, I'm just trying to run the numbers, and it seems that $545 seems like a great deal.

The other truth of the matter is, however, that I'm "forced" to somehow deal with $552 each year, by either flying there and using it, flying somewhere else and paying an exchange fee (and hoping for an acceptable exchange), or banking it, or selling that year's week to someone else.

The big unknown, for me, is this unit's exchange value. Is there a way for me to see what this would exchange for in, say, Hawaii, or Orlando, or San Diego?

Thanks again,

David

Maintenance fees are usually based on the size of a unit. Fees for a 2 bedroom unit will be higher than a studio.

IMHO, I don't think that a studio will work for your family of four. We have two children and really need the space of a full 1 bedroom, and prefer a 2 bedroom.

You seem to like the same places we like, so this is what we have done: In Southern California, we have rented at Four Seasons Aviara, Carlsbad Seapointe, and Grand Pacific Marbrisa (Carlsbad), and at Newport Coast Villas (Newport Coast). We have rented during the summer for the great weather and kids' breaks.

For Hawaii, well, we love Maui so much, we bought our first timeshare (developer purchase) there, and go every year and stay in a 2 bedroom (with fees around $1800). For Orlando, we fell in love with Disney's onsite villas, so just had to buy points at Beach Club Villas (resale). We can go every other year and stay in a 2 bedroom (with fees around $850/year, or $1700 for the week).

Will a studio at a Mexican timeshare trade into any of these places? I would say it is not likely, especially during any popular times. However, you could probably get Orlando since it is overbuilt with timeshares. But you could rent in Orlando and have your pick of any resort for a good price. Disney onsite might be the most expensive.

If I were you, I would read read read, rent rent rent, and NOT buy a studio week in Mexico for more than $1 unless you want to go to Mexico and stay in a studio. You can rent at all of the places you mentioned and get a feel for the resorts. When you are ready to buy, you should probably buy in a location that you would most likely want to return, so that if you could not get an exchange you wanted, you would be happy going there.
 

Henkemeyer

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Maintenance fees are usually based on the size of a unit. Fees for a 2 bedroom unit will be higher than a studio.

IMHO, I don't think that a studio will work for your family of four. We have two children and really need the space of a full 1 bedroom, and prefer a 2 bedroom.

You seem to like the same places we like, so this is what we have done: In Southern California, we have rented at Four Seasons Aviara, Carlsbad Seapointe, and Grand Pacific Marbrisa (Carlsbad), and at Newport Coast Villas (Newport Coast). We have rented during the summer for the great weather and kids' breaks.

You rent just as if you don't own a timeshare? So w/o getting a TS anywhere, we could also rent from these places? How much on avg is a place in So Cal to rent? (Assume 1 or 2 bedroom)

For Hawaii, well, we love Maui so much, we bought our first timeshare (developer purchase) there, and go every year and stay in a 2 bedroom (with fees around $1800). For Orlando, we fell in love with Disney's onsite villas, so just had to buy points at Beach Club Villas (resale). We can go every other year and stay in a 2 bedroom (with fees around $850/year, or $1700 for the week).

So you pay $850/year above and beyond the $1800 you pay for the 2 bedroom in Maui?

Will a studio at a Mexican timeshare trade into any of these places? I would say it is not likely, especially during any popular times. However, you could probably get Orlando since it is overbuilt with timeshares. But you could rent in Orlando and have your pick of any resort for a good price. Disney onsite might be the most expensive.

If I were you, I would read read read, rent rent rent, and NOT buy a studio week in Mexico for more than $1 unless you want to go to Mexico and stay in a studio. You can rent at all of the places you mentioned and get a feel for the resorts. When you are ready to buy, you should probably buy in a location that you would most likely want to return, so that if you could not get an exchange you wanted, you would be happy going there.

I guess what my question is, what are your annual costs, and what does it buy you? It sounds to me like you own 2 TS units, one in Maui and one in Orlando, and you get 3 trips every two years, each for a week. Is that correct?

Thanks for your help, this is really helping me explore (a) what it is I really want, (b) how much it will cost, and most importantly, (c) the smartest way about getting what's right for me.

So the next time we go somewhere, I think we will rent. Most likely this will be either So Cal, Hawaii, or Orlando.

Thanks thanks thanks! :banana:

David
 
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Denise L

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You rent just as if you don't own a timeshare? So w/o getting a TS anywhere, we could also rent from these places? How much on avg is a place in So Cal to rent? (Assume 1 or 2 bedroom)

Yes, timeshare owners at any of the resorts are allowed to rent their weeks out, and many do. Check the TUG Marketplace, redweek, craigslist, myresortnetwork, etc., for rentals. The resorts themselves often rent weeks out like hotel rooms, but you get the full kitchen and added space of a timeshare. A full kitchen has always been a necessity for our family! You can probably rent a 1 bedroom from $850-1500 and a 2 bedroom for 1500-2500. It really does depend a lot on the time of year and which resort.

So you pay $850/year above and beyond the $1800 you pay for the 2 bedroom in Maui?

Each timeshare week will have its own fees. So on top of the initial purchase price, you will pay an annual fee for usage. For our Maui week, we pay $1800/year for our week, and for our Disney week, we pay $850/year and we go every other year, so that week costs us $1700.

I guess what my question is, what are your annual costs, and what does it buy you? It sounds to me like you own 2 TS units, one in Maui and one in Orlando, and you get 3 trips every two years, each for a week. Is that correct?

Not counting our purchase prices, those are the annual fees. If you count the purchase prices, then the cost goes way up. We own more than two TS weeks, but I was giving you examples in the places you were thinking of going. We own Hyatt points that cost us about $900/year for 4 nights in Lake Tahoe and 2-4 nights in Carmel per year.

2008: Maui (7 nights), Orlando (6 nights), Tahoe (4 nights), Carmel (2 nights)

Those fees for the year would be $1800, $1700 and $900

2009: Maui (7 nights), Tahoe (4 nights), Carmel (2-4 nights)

Those fees for the year would be $1800, $900. We pay the Disney fees every year, but for these purposes, I just bundled them together in the year we are actually using the week, which is 2008.

It gets more complicated if you buy a week for trading purposes, then your cost is the maintenance fee for the week you are trading (say it's $500), plus exchange fees of about $139. So let's say in 2009, I use a trader to get a week in Maui. So my fees could be $1800, $900 and $539.

Renting is pretty easy. I know it will help you decide where you want to go and where you might want to own. Good luck!
 

Bill4728

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You can rent a TS direct from the resort and pay big bucks OR you can rent from a current owner and pay much less.

There are several websites which list rentals from owners. Here on TUG we have one as well as Redweek.com, My resortnetwork.com, VROB, & craiglist.


OR you can rent from the exchange companies. RCI offers many weeks to the general public at wyndham-vacations.com Interval offers their weeks to the public at condodirect.com

Good Luck
 
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mamiecarter

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Dpn't Buy Mexico.Buy close to home and trade to Mexico

Mexico is a timeshare disaster. Buy a good west coast Timeshare in the US or Canada. Buy close to home so you can drive to it and plan on useing it. Then some years you can get a trade into Mexico.
 
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