How do most people finance resales?

[jbs]

I had been planning on using Hilton Amex with 0% for 12 months, but the agent is telling me that none of the title companies she has contacted will accept credit cards for the balance. They say credit cards are not secure for this type of transaction.

The purchase price seems very high We don't know the specifics, but most timeshares are being given away, so 19k is alarming. I can't personally think of a HI week that would yield that resale even Christmas or New Years.

 

[jbs]

Three months ago I sold a deeded one bedroom garden view Christmas week at Marriott Maui Ocean Club for $18,000. I purchased the week from Marriott for $23,000 more than 20 years ago, so it held its value pretty well. In 2022, I sold a deeded Week 52 for $19,000. The deeded holiday weeks hold value better than the floating weeks.

 

[Wolfgheist]

Three months ago I sold a deeded one bedroom garden view Christmas week at Marriott Maui Ocean Club for $18,000. I purchased the week from Marriott for $23,000 more than 20 years ago, so it held its value pretty well. In 2022, I sold a deeded Week 52 for $19,000. The deeded holiday weeks hold value better than the floating weeks.

Good to know. I am paying $15,000 for HHV 2 bedroom premium Christmas week, plus the other fees that bring it up to around $19,000 - $20,000

 

[1Kflyerguy]

Banks charge their customers (the seller in this case) intercharge fees of 2% to 4% to use credit cards. AMEX charges among the highest fees. My guess is the fees are the reason they won't accept a credit card. There is nothing insecure about using the card, it just costs them money to do so.

I am sure the fee is a factor in the decision not to take cards, but another issue is chargebacks. You can easily open a dispute with the credit card company for almost any charge. You may or may not be successful with the dispute, but it's definitely a hassle for the seller. If the buyer opens the dispute after the title change has been processed, that would be hard to undo.

 

[davidvel]

I am sure the fee is a factor in the decision not to take cards, but another issue is chargebacks. You can easily open a dispute with the credit card company for almost any charge. You may or may not be successful with the dispute, but it's definitely a hassle for the seller. If the buyer opens the dispute after the title change has been processed, that would be hard to undo.

Correct. Escrow needs to know the funds are good and not returnable in any way. Most real property escrows require closing funds to be wired for this reason.

 

[vacation911]

Correct. Escrow needs to know the funds are good and not returnable in any way. Most real property escrows require closing funds to be wired for this reason.

Right they dont want the hassle of trying to dispute a chargeback. Closings can take awhile and cause people to get antsy.

 

[Snazzylass]

Right they dont want the hassle of trying to dispute a chargeback. Closings can take awhile and cause people to get antsy.

Sorry, I think you missed the point. When working with a Title or Escrow Company, the transaction must be finalized at closing. You do realize the T/E Co is a third party facilitating the transition, right? They are holding the deposit until closing when everything is finalized. They never own the the real estate, which could cause another wrinkle for potential chargebacks. Once closing takes place, the deed is transferred to the new owner and the title company wires the funds to the seller or perhaps offers a cashiers check. It's a hard money transaction unless there is a lender involved and then there is a lien. Cash is cash. The buyer must present cash.