Hawaii Resale Market

[MOXJO7282]

In 2010, I bought my Marriott Kauai Beach Club on e-bay. At that time, there were approximately 100 offers of Marriott timehares on e-bay on a daily basis with quite a few in Hawaii. I have been following the listings ever since, and have seen offerings decrease to approximately 30 - 40, with very few in Hawaii. Has anyone else noticed this? I wonder if this is due to an improved economy and people no longer anxious to unload their timeshares or to Marriott exercising ROFR and nullifying these bargain e-bay sales.

I got my best Maui deal on ebay the $19.1K OF float new tower I reference above and I do think it was the best buyer's market for Marriott deals if you have the risk tolerance to deal with some questionable sellers but it definitely doesn't have the deals it once did.

I do believe it is as you state so well, it is "an improved economy and people no longer anxious to unload their timeshares or to Marriott exercising ROFR and nullifying these bargain e-bay sales"

 

[NTP66]

The current market makes me glad that we purchased when we did, if only to allow us to continue renting our second unit for a nice profit as needed.

 

[JIMinNC]

As I mentioned in the thread I started this morning about our just-completed purchase in the MOC original towers, we found it very challenging to find EOY-Odd listings at MOC.

I had started looking in earnest last summer/fall. The first thing that happened was that all of the EOY MOC inventory disappeared from the Marriott Resales site. We were focusing on OV units since several experienced MOC owners here had said the OV units are a little easier to book for a single-week MOC owner than the OF 2BR units, plus they cost less to buy. But the Odd-Year OV units were so hard to find, we expanded our search to include OF, and still had trouble finding a lot of available listings. Twice we inquired about new attractively-priced EOY OF listings on Redweek, but they were both already under contract just a few days after being listed. We found several EOY-Odd 2BR OV listings from brokers, but on the first two we pursued, the sellers wouldn't go below $9,000. I contacted Sam Rodriguez at Selling Timeshares, and he had just received a listing that matched what we were looking for the day before. I don't think the listing was even finalized yet. We agreed to a price of $8,000.

 

[NTP66]

We agreed to a price of $8,000.

Which is a great price, IMO. We paid $8300 for our EOY (even) 2BR unit. That said, 5infam practically stole his at $7k.

 

[gblotter]

During the depths of the recession in 2011, I purchased three weeks on the resale market for embarrassingly low prices.

Marriott Mountainside - 2BR Gold Season (Summer)
Marriott KoOlina Beach Club - 2BR Ocean View
Marriott Maui Ocean Club - 2BR Ocean View

At that time, Marriott International was in the process of spinning off the timeshare business, so they were not exercising ROFR on anything. Conditions were perfect for grabbing bargains on the resale market. It was one of those rare times when I do something smart.

Because they were purchased after June 2010, these weeks cannot be enrolled in the Destinations Club program. But no matter - these are locations we love visiting, so we rarely want to trade anyway.

 

[Jayco29D]

During the depths of the recession in 2011, I purchased three weeks on the resale market for embarrassingly low prices.

Marriott Mountainside - 2BR Gold Season (Summer)
Marriott KoOlina Beach Club - 2BR Ocean View
Marriott Maui Ocean Club - 2BR Ocean View

At that time, Marriott International was in the process of spinning off the timeshare business, so they were not exercising ROFR on anything. Conditions were perfect for grabbing bargains on the resale market. It was one of those rare times when I do something smart.

Because they were purchased after June 2010, these weeks cannot be enrolled in the Destinations Club program. But no matter - these are locations we love visiting, so we rarely want to trade anyway.

What would be “embarrassingly low” prices? I am just wondering bc we have enough timeshares now but may wait for next recession to buy more. I believe we got great prices on our timeshares but we just bought them all at the end of last year.

 

[TXTortoise]

I hope everyone is keeping ROFR.net updated. Even if you post anonymously, use your correct email for the moderator.

 

[brianfox]

What would be “embarrassingly low” prices? I am just wondering bc we have enough timeshares now but may wait for next recession to buy more. I believe we got great prices on our timeshares but we just bought them all at the end of last year.

Right now Annual MV 2BR Waiohai and MV 2BR Ko Olina weeks are going for around $5K. That is the lowest I have seen (I purchased three Waiohai weeks for that price). Been tracking for years. Could they drop more? Yes - they could fall another $5K in the next recession.

I recommend you follow the ROFR database, because sales price means nothing when ROFR is involved...

 

[MOXJO7282]

Could they drop more? Yes - they could fall another $5K in the next recession.

I recommend you follow the ROFR database, because sales price means nothing when ROFR is involved...

Not to disparage Kauai and Oahu but that won't happen with view units at the MOC. I'm sure they will lose some value when the next recession hits and I will be a big buyer of Maui units because there is always a demand for Maui.

I started my Marriott rental business in 2003 and really started adding weeks in the next 5 years to rent. I didn't take loans but did use 0% credit cards to pay for all of them so I was definitely exposed.

Then the recession hit and I thought I was screwed and rentals would dry up and the margin call would come. As it turns out my Maui rental business didn't miss a beat, I didn't have to lower price or anything, and haven't since.

I don't think you can say that about too many timeshares. Probably a few but MOC is one of them.

 

[Jayco29D]

Good point above. During the last recession, we bought more real estate. We went on vacations that cost the same as now - or more in some cases. I just discovered upscale timeshares and what a bargain they are. Now I am hooked. But we buy to use, not rent. My spouse says no more timeshares unless I sell something. I feel the prices we got on everything except Disney are so low that even if they go to zero, we will get our money’s worth out of them. However, we only bought TS with guaranteed ocean view or oceanfront in Hawaii. Maintenance fees are the same, so I would rather pay a little more upfront to get the ocean. Otherwise, why go to Hawaii?

 

[StevenTing]

I am now under contract to sell my Ko Olina EOY Odd 2BR OV week. I think listed it on Thursday, 2/15/2018 and Buyer filled out the contract on 2/19/2018. Here's hoping to a smooth transaction.

 

[csodjd]

I'm sure they will lose some value when the next recession hits and I will be a big buyer of Maui units because there is always a demand for Maui.

Precisely. I've got an OF EOY Odd MOC Napili and now I'm just waiting for our next recession, maybe a year or two away?, to find an Even.

 

[NTP66]

Whoa whoa whoa, let’s not jinx things by hoping for a recession now...

 

[MOXJO7282]

Until the next downturn there are still deals to be found but for OF you have to be patient and then when you find the right deal, pounce on it to close the deal. I have 4 even EOY MOCs so really have been looking for odd EOY to balance out the mix and as mentioned those seemed to be limited for some reason.

Just found a Naplil OF float with 2019 usage and offered 2 deals, $X for 2019 usage or $X plus $1000 if you the seller could secure me a prime 2019 week check-in as part of the deal. I thought this was a good approach because I would've been happy at $X as it was a good all-in price and even happier to get a prime week check-in and pay the extra $1k because that is even more valuable to me.

The extra $1k gave the seller the incentive to secure the prime week I was looking for and they were able to so, so it's a win-win, I got a prime week to use instead of getting stuck with a bad week which is usually the case and one of the down sides of buying resale, and the seller gets the higher price point.

Now let's hope it passes ROFR. I'll add the details to the ROFR database when I get official word.

 

[JIMinNC]

Whoa whoa whoa, let’s not jinx things by hoping for a recession now...

We are, actually, quite overdue for a recession. It would be far better to have a mild recession sooner to balance out the economic cycle than to let the economy get overheated, resulting in a more extreme boom-bust cycle. That was one of the advantages of the slow but steady growth since the end of the Great Recession of 2008-2009 - the economy didn't get overheated. If things get a little more out of control growth-wise, any resulting recession could be more severe. I think that's why we saw such wild swings with the stock market a couple weeks ago when interest rates spiked faster than expected. The fear is that the economy will overheat and trigger a more serious down turn.

 

[TXTortoise]

I sure am wanting to buy another Napili/Lahaina week. I would dearly LOVE to get a fixed week, but they are a lot more pricey.

SG, I was revisiting this with someone offline (they are using a broker to list Napili 2BR OF Fixed Week 7...not online yet) and it just reminded me to suggest that you try and find a sale by owner. Really hard to do for these Napili or Lahaina weeks, but if you can, both the buyer and seller can benefit.


For example:
Broker Lists Everywhere for $50K and takes 20% (or 15% if no other broker involved)
Unit Sells for $40K (Broker may end up splitting commission with another broker)
Seller Nets $32K

Owner Lists for $50K on Redweek
Broker brings a buyer takes 15%
Unit Sells for $40K
Seller Nets $34K

Owner Lists for $50K
No broker involved
Unit Sells for $40K (or $35K for easy sale and both owner and seller benefit.)
Seller Nets $40K