hilton rofr (march 2009 thread)

[Bill4728]

I guess, we cant use ebay as a pricing point.

The pricing on HGVC on ebay is subject to Hilton's ROFR (all but the HGVC at the Flamingo which doesn't have ROFR). So as a buyer, you have no idea of what purchase price it will take to get pass Hilton's ROFR. Therefore the ebay prices for HGVC are of very little relevance.

 

[gshipley]

The pricing on HGVC on ebay is subject to Hilton's ROFR (all but the HGVC at the Flamingo which doesn't have ROFR). So as a buyer, you have no idea of what purchase price it will take to get pass Hilton's ROFR. Therefore the ebay prices for HGVC are of very little relevance.

I would also think that prices on ebay are lower because a lot of people don't trust buying things on ebay. I personally only buy and sell timeshares (or any property) through licensed agents. I just feel more secure in the purchase this way and am willing to pay a few extra dollars for the peace of mind.

 

[timeos2]

EBAY price is what the seller gets no matter ROFR or not

The pricing on HGVC on ebay is subject to Hilton's ROFR (all but the HGVC at the Flamingo which doesn't have ROFR). So as a buyer, you have no idea of what purchase price it will take to get pass Hilton's ROFR. Therefore the ebay prices for HGVC are of very little relevance.

Not really as those are the prices the seller gets regardless of who ends up with the week (the legitimate 3rd party buyer or the ROFR stolen by the developer). Plus most groups - HGVC sees to be in with the them - aren't actively exercising ROFR now anyway as existing inventories are too large and available cash for developers too small for them to do it. While I would avoid any property that has ROFR if you MUST buy one now is probably the best time.

 

[Bill4728]

Not really as those are the prices the seller gets regardless of who ends up with the week (the legitimate 3rd party buyer or the ROFR stolen by the developer). Plus most groups - HGVC sees to be in with the them - aren't actively exercising ROFR now anyway as existing inventories are too large and available cash for developers too small for them to do it. While I would avoid any property that has ROFR if you MUST buy one now is probably the best time.

For the seller, ROFR doesn't help you get a better price, but as a buyer, seeing low prices on Ebay, doesn't tell you if those prices are getting thru ROFR. So when you see a platinum 7000 pt HGVC in LV sell for $9,300, you have no idea if you can actually buy & close on that TS at that price. Seth has said that most HGVC -LV TS are not passing ROFR until they are above $11,000. So recent Ebay prices are not relevant to any buyer looking to buy a HGVC in LV.

 

[natarajanv]

I would also think that prices on ebay are lower because a lot of people don't trust buying things on ebay. I personally only buy and sell timeshares (or any property) through licensed agents. I just feel more secure in the purchase this way and am willing to pay a few extra dollars for the peace of mind.

If you look at ebay auctions 9 out of 10 are by Judy from remax anyways......

 

[Seth Nock]

Ebay sold for 9120 so I guess that is what it is worth in today's market maybe a little more or less.

It was sold by a company that I don't believe is licensed, closing without a title search and may not give the buyer clean title. This is probably why it sold so inexpensively.

 

[logan115]

As a buyer, is there anything you lose other than time if a contract you bid on has ROFR exercised ?

Thanks,

Chris

 

[Bill4728]

As a buyer, is there anything you lose other than time if a contract you bid on has ROFR exercised ?

Thanks,

Chris

You lose nothing except your time. You should get all your money back after HGVC takes the unit. ( but it may take some time for this to happen)


PLEASE NOTE: HGVC is still using their ROFR. They may not use it all the time or at the same price point they did when this thread was started. BUT they are still using it.

 

[logan115]

Thanks (again) Bill -

Was looking at the HGVC stickies and found this thread - didn't realize until just now that this thread was from March 2009 and not March 2010.

Suppose I really need to start getting used to looking a bit closer at all the details if I'm even thinking about buying a 2nd TS

Chris

 

[logan115]

You lose nothing except your time. You should get all your money back after HGVC takes the unit. ( but it may take some time for this to happen)


PLEASE NOTE: HGVC is still using their ROFR. They may not use it all the time or at the same price point they did when this thread was started. BUT they are still using it.

Sorry to keep bumping an old thread but had another HGVC ROFR question.

Above Bill mentioned that you "should" get your money back if HGVC uses ROFR - do you have to transfer over the total amount prior to finding out if you passed ROFR or not ? Not 100% certain, but I'm pretty sure when we bought DVC last year that we sent a deposit to our broker (to go into escrow), but didn't send the balance until we got word that we passed.

So with HGVC, if I purchase a contract for $5K do I need to send that money *somewhere* before I even find out about ROFR ?

Thanks,

Chris

 

[PigsDad]

Sorry to keep bumping an old thread but had another HGVC ROFR question.

Above Bill mentioned that you "should" get your money back if HGVC uses ROFR - do you have to transfer over the total amount prior to finding out if you passed ROFR or not ? Not 100% certain, but I'm pretty sure when we bought DVC last year that we sent a deposit to our broker (to go into escrow), but didn't send the balance until we got word that we passed.

So with HGVC, if I purchase a contract for $5K do I need to send that money *somewhere* before I even find out about ROFR ?

If you use a reputable broker, you should only need the deposit (that is how our was handled). In any case, make sure they are using a good escrow service. That way, there will be no problem.

Kurt

 

[logan115]

If you use a reputable broker, you should only need the deposit (that is how our was handled). In any case, make sure they are using a good escrow service. That way, there will be no problem.

Kurt

Thanks (again) Kurt -

Didn't think that you had to send in all of the funds prior to getting the word on ROFR but wanted to make sure.

Chris

 

[optimist]

I just purchased a Hilton through ebay and I had no choice with the closing company. They insisted on all the money at once before they would proceed with the application for ROFR. I paid them using a credit card, thinking that I would have some recourse if things went wrong.
I am still not done so I cannot tell you that all went well but not all closing companies will agree to proceed with just a deposit.

 

[logan115]

I just purchased a Hilton through ebay and I had no choice with the closing company. They insisted on all the money at once before they would proceed with the application for ROFR. I paid them using a credit card, thinking that I would have some recourse if things went wrong.
I am still not done so I cannot tell you that all went well but not all closing companies will agree to proceed with just a deposit.

Thanks for the heads up. Didn't think about putting it on a CC as that wasn't an option when I bought DVC through a broker. Suppose I can at least get the 1% back throwing it on my Costco Amex - unless I can get it classified as a vacation/travel expense and get 2% :hysterical:

Chris

 

[PigsDad]

Thanks for the heads up. Didn't think about putting it on a CC as that wasn't an option when I bought DVC through a broker. Suppose I can at least get the 1% back throwing it on my Costco Amex - unless I can get it classified as a vacation/travel expense and get 2% :hysterical:

When I purchased my HGVC resale through Seth, he used HGVC's closing company. I had the Hilton HHonors Amex and charged the full amount (a good chunk of change) on the card. Because the charge came through as a "Hilton" charge, I got the full 5 HHonors points per dollar -- the same that you get when charging Hilton hotel expenses on your card! Normally, you only get 3 pts/$.

When we used those points toward a VIP award stay, I calculated that the HHonors points we received from the HGVC resale purchase were worth about $1,700! (hotel in Venice, Italy) Now that was a great deal! :whoopie:

We used to get the 5 pts/$ for paying maintenance fees as well, but they stopped do that a little over a year ago, I believe.

Kurt

 

[logan115]

When I purchased my HGVC resale through Seth, he used HGVC's closing company. I had the Hilton HHonors Amex and charged the full amount (a good chunk of change) on the card. Because the charge came through as a "Hilton" charge, I got the full 5 HHonors points per dollar -- the same that you get when charging Hilton hotel expenses on your card! Normally, you only get 3 pts/$.

When we used those points toward a VIP award stay, I calculated that the HHonors points we received from the HGVC resale purchase were worth about $1,700! (hotel in Venice, Italy) Now that was a great deal! :whoopie:

We used to get the 5 pts/$ for paying maintenance fees as well, but they stopped do that a little over a year ago, I believe.

Kurt

How many HGVC points did you buy ????????? That sounds crazy !!

Chris

 

[PigsDad]

How many HGVC points did you buy ????????? That sounds crazy !!

We bought 8400 points (3BR Plat) a few years ago. By the time closing costs were added in, it netted us 80K+ HHonors points through the Amex purchase. We used those with a VIP code (back before the reward levels went up) for a $600+ / night hotel in Venice (terrible exchange rate, expensive hotel). The 80K+ HHonors points were worth in the range of $1700 for that transaction.

If used for the very expensive hotels (usually in Europe), HHonors points can be worth quite a bit. Another reason I really like Hilton.

Kurt

 

[brp]

We bought 8400 points (3BR Plat) a few years ago. By the time closing costs were added in, it netted us 80K+ HHonors points through the Amex purchase. We used those with a VIP code (back before the reward levels went up) for a $600+ / night hotel in Venice (terrible exchange rate, expensive hotel). The 80K+ HHonors points were worth in the range of $1700 for that transaction.

If used for the very expensive hotels (usually in Europe), HHonors points can be worth quite a bit. Another reason I really like Hilton.

Kurt

Hmmm...now you've got me reconsidering. I just gave HGVC a credit card to pay off the balance on a deal. I gave my Starwood Amex to get those points. I hadn't thought about the HGVC purchase coming through as "Hilton," and it may make sense to give the HH Visa instead

Cheers.

 

[mleonhardt]

I noticed at the presentation at the LV strip the sales folks were offering up lots of old properties that Hilton must be buying up. What are the ROFR threshold at Sea world and some other properties such as lagoon tower