HGVC Elara 1 Bedroom - 11,200 Points ... Holding their asking price ... ..

[brial05]

I wish everyone success in their attempts to sell their timeshare if that is what they want to do. I know that in some cases, it may be almost impossible to do so without paying out of pocket.

Having stated the above, I am surprised that the one-bedroom, 11200-point unicorn that is the Elara seems to have held on to its 5k minimum this whole year. There seem to be many; either they are the same units, or they are coming in and out, but the bottom line is 5k.

I've contacted the MLS brokers who are 'selling' these units, and all absolutely will not budge from this price. They all say they will ask their clients, but I get ZERO responses.
I am using the Hilton MLS site, but any site with true MLS listings would show the same.

I wonder if I am missing listings that are perhaps not officially 'MLS'?

I am not trying to lob a lowball offer, but I at least want a discussion. It seems as if none of the MLS brokers who represent their listings will discuss anything. They want the list price, and they want me to pay the closing.

I had hoped to purchase before year-end and that the hard-line stance would soften as we approach year-end, but it has not.

Any insight would be appreciated.

 

[letsgobobby]

you "want a discussion" but apparently the sellers don't.

it's not about your feelings.

take it or leave it.

 

[hgvcdude]

Yeah I hear you on wanting a deal! Me too! I also tried the real estate agent route and got nowhere. I almost bought one of these Elara 11,200 deeds a few weeks ago. I was staying in Orlando at the time at the HGVC and I was at Universal Studios Orlando sitting outside of the Velocicoaster when I saw one of these come up for sale on ebay on my phone. It was only $4125 and seller was paying closing. I knew this was a good deal and I almost pressed the buy now button. I was trying to get it for a bit cheaper and negotiating with the seller when someone else bought it out from under me. My mistake "waiting" on it for sure! I normally throw money fast at a good deal and lock it down quick. I sold (2) of these for $8750 each last year, when I had bought them for 4-5K. Luckily for me, I was able to snag a 2 bedroom grand Elara unit for only 6K about a week after I missed out on the $4125 deal, so I bought that since I really wanted the 2 bedroom since it's even more of a unicorn and I have a thing for rare deeds and I've been really wanting a good 2 bedroom deed at Elara. They are just so rare. I thought more sellers would be selling right now with maintenance fees being due, but so far it's been a quiet selling season. In my opinion, a good deed at the Elara is the best deed you can buy right now. Keep waiting and checking ebay. I see multiple amazing deals every year. You just gotta pounce fast when the right deed comes up at a good price, because if you don't, someone else definitely will.

 

[4TimeAway]

I sold (2) of these for $8750 each last year, when I had bought them for 4-5K.

There can be some great deals from time to time. If you want it, buy it.

My issue with resale timeshares is everyone wants the "best deal" seriously 80-90% off retail should be good enough.

These things have a range of values in the illiquid market. Buy low, sell high. I like it.

 

[CalGalTraveler]

I wish everyone success in their attempts to sell their timeshare if that is what they want to do. I know that in some cases, it may be almost impossible to do so without paying out of pocket.

Having stated the above, I am surprised that the one-bedroom, 11200-point unicorn that is the Elara seems to have held on to its 5k minimum this whole year. There seem to be many; either they are the same units, or they are coming in and out, but the bottom line is 5k.

I am not trying to lob a lowball offer,

Any insight would be appreciated.

Your first paragraph is apparently untrue for this property. You said yourself that this is a unicorn so it is in high demand for resale. Supply and demand means what the market is willing to bear.

What do you want to discuss? Provide the offer you are willing to pay to each listing and you will have your answer.

From @hgvcdude post, at best you could get $800 + trxn off. If and when this arises you will have to be fast which means constant checking. IMHO $5000 for 11,200 pts is a fair price because 11200 units in Vegas can sell for up to $7000 or more. I sold an 11200 with a higher MF per point for about $6500. Yes I had tire kickers like you. I ignored, waited and found a buyer.

How long do you want to wait to vacation? There are buyers who do not have time to constantly check but want a good unit MF/pt and a fair price

If you plan to own for 10 -20 years the difference in purchase price is irrelevant compared to the MF cost savings. Do the math.

This is a desirable unit with a good exit path and low MF.

If it were me I would try to find an owner on Tug or Facebook group and deal direct with closing by third party $250 like LT transfers. If broker is selling for $5000 the broker is taking $750 or more. You can mitigate this net cost to owner thru direct DIY.

 

[Hobokie]

$5k wow that’s madness! What’s the annual MF for this? I have a platinum studio plus (5600) that I paid $148 for on Ebay. I wonder what the math for breakeven for this is (ie getting 2 studios for free or very low vs $5k madness — how many years based on MF savings would it take for the 1 bd to make more sense?)

 

[Reddart]

$5k wow that’s madness! What’s the annual MF for this? I have a king platinum studio plus (5600) that I paid $148 for on Ebay. I wonder what the math for breakeven for this is (ie getting 2 studios for free or very low vs $5k madness — how many years based on MF savings would it take for the 1 bd to make more sense?)

Based on 2025 MF, 9-10 years. But probably somewhat less due to MF increases.

 

[Hobokie]

I’m about ready to be done with mine ha! I’m with ya @brial05 , I would NOT pay $5k for this 1 bd unit.

 

[Chris-ATX]

I’m about ready to be done with mine ha! I’m with ya @brial05 , I would NOT pay $5k for this 1 bd unit.

@Hobokie how close to being done are you?

 

[CalGalTraveler]

@Hobokie congrats on your great deal. It sounds like this amount of points works for you.

To compare: Of course you would need to own 2 to be equivalent points wise @ 11200 for this deal:

Purch × 2 units + 2 HGVC Transaction Fees ($1100 x 2) + $650 account setup fee x 2 = $3500 in HGVC Fees + broker fees + purchase price.

Also need to add that 2 units needs to pay extra to exit because no one will want it. 1yr to 18mos MF + HGVC trxn fees of $1100 x 2 = $2000 MF + $2200 HGVC = $4200+

$3500 + $4200 = $7700+ to enter and exit those "free" timeshares. This does not include broker fees and purchase price

In addition you are paying higher MF per point than the 1 bdrm. That is x2 because 2 units to compare apples to apples.

The 1 bdrm is $5000 + $2200 + $650 = $7850 plus easy exit and resale return of $3000 (to be conservative) = net $4850 cost plus lower MF difference $1000 est vs 2 free timeshares $2000 est per year. That means every year one would pay $1000 more per year for equiv points for those free timeshares!

That one bdrm would pay off in less than 5 years compared to free with easy exit and less admin hassle because 1 unit.

Of course this is back of the envelope and your exact figures may be different but one can easily see that transaction costs and higher MF per year can easily add hidden fees to free timeshares.

 

[Reddart]

@Hobokie congrats on your great deal.

To compare: I would like to see the math on your unit. Of course you would need to own 2 to be equivalent points wise @ 11200 for this deal:

Yes, my 9-10 year break even estimate was based on $5k purchase of a 1Br and $0 for the 2 studios, which unless the seller payed all closing costs and fees, is not $0. At a minimum there would be the 2X$695 activation fees, correct?

 

[4TimeAway]

I had hoped to purchase before year-end and that the hard-line stance would soften as we approach year-end, but it has not.

I would recommend never be in a hurry to purchase. The process can drag on longer than you want in the best of times.

Also, be flexible on location.

$1000 more per year for equiv points for those free timeshares!

Hopefully, you think about this tradeoff.

It took me longer than I'd like to admit that there is logic on TUG to getting the lowest MFs/pt weeks and paying a bit up front. Note: Not always, but in many cases, there is a point where this can really payoff.

Also, Timeshares are like potato chips, you can’t just have one!

 

[CalGalTraveler]

Yes, my 9-10 year break even estimate was based on $5k purchase of a 1Br and $0 for the 2 studios, which unless the seller payed all closing costs and fees, is not $0. At a minimum there would be the 2X$695 activation fees, correct?

Correct buyer cannot avoid the HGVC account set up fees even if trans fees paid by seller. Frequently those eBay deals charge a $250 -$750 fee as well. I did not add that.

Did you take into account the higher annual MF of a second free timeshare? (I estimated $1000/year extra for higher MF/pt plus second deed to be apples to apples points wise)

And exit resale of unit? I estimated $3000 deduction to be conservative for unicorn but when I sold my 11,200 Vegas I recouped almost all of my purchase price. Buyer paid all transaction fees.Not the case for 2 free units.

 

[Reddart]

Did you take into account the higher annual MF of a second free timeshare? (I estimated $1000/year extra for higher MF/pt plus second deed to be apples to apples points wise)

Yeah, it is roughly $450 more a year MF for 2 studios vs one 1BR. I didn’t include any other costs, just the MF differential.

 

[CalGalTraveler]

I do not think any studio is $450 MF? For the second unit I included the entire MF cost because that is a cost you would not have to incur if bought the 1 bdrm but would pay to get to apples to apples points so that is how I estimated $1000 extra MF per year

 

[Reddart]

It’s actually $520 more for 2 studios over a 1BR.

2 x 763.27-1006.13= 520.41.

But yes, need a full accounting of the upfront cost of the “free” studios to get an accurate cost of ownership comparison, compared to the $5K 1 BR.

 

[CalGalTraveler]

Okay so you took into account 2 studios vs. 1 bdrm MF difference ( if you can find two. Free studios elsewhere may be more.)

I did not include broker and purchase price so could be higher.

Many risks with free that could ruin your return. What if transaction fees rise again?

 

[Nowaker]

I saw one of these come up for sale on ebay on my phone. It was only $4125 and seller was paying closing. I knew this was a good deal and I almost pressed the buy now button. I was trying to get it for a bit cheaper and negotiating with the seller when someone else bought it out from under me. My mistake "waiting" on it for sure!

Real estate purchases on Ebay are non-binding, so you shoot first and ask questions later.

 

[brial05]

$5k wow that’s madness! What’s the annual MF for this? I have a platinum studio plus (5600) that I paid $148 for on Ebay. I wonder what the math for breakeven for this is (ie getting 2 studios for free or very low vs $5k madness — how many years based on MF savings would it take for the 1 bd to make more sense?)

It is $763 x 2 = $1526 for Two Studio Plus Elara Units
vs.
$1006 for the 1 Bed Room Grand Elra Unit.

So, $520 more per year in MFs is needed to own two units.

Assuming closing costs are the same (they are not; you need to factor 2x closing), I just saw a Hilton-supplied MLS listing for the Studio for $500, and the same broker is listing a One-Bedroom Grand for $5000.

You have to pay $4500 more for 1 Bed Room Grand than for the two units, so @Reddart was spot on, 9 years or less of ownership, and it makes sense to buy the two units.

Keep it for more than 9 years, and then it makes sense to have bought the 1 bedroom in the grand hotel.

You can chip at the $4500 .... first and foremost, get a better price as we are discussing ... next activation fee vs. feeS...... and the extra closing that I mentioned above.

I have done the two deeds for more points, and this is personal to me; I want just one deed.