How to be confident we are getting a good deal? [Shell Kauai Coast Resort merged]

[JerryCaldwell]

We are in escrow on a Shell Vacations Club - Kauai Coast Resort at the Beachboy.

-2 bedroom
-Floating
-7000 points + 7000 banked already

$8500 + closing of around 300.00

What should we be sure to check for before closing?

How do we verify that we can easily exchange for other locations if we want?

We like this resort a lot and are excited about this

 

[theo]

We are in escrow on a Shell Vacations Club - Kauai Coast Resort at the Beachboy.

-2 bedroom
-Floating
-7000 points + 7000 banked already

$8500 + closing of around 300.00

What should we be sure to check for before closing?

How do we verify that we can easily exchange for other locations if we want?

We like this resort a lot and are excited about this

I don't know anything about Shell Vacation Club, or its' "points" or the Kauai resort to which you make reference, or whether $8.5k is a "good deal" (although I am inclined to seriously doubt that, quite frankly). Nonetheless, I will still offer two generic and directly applicable and relevant observations:

1. Are you quite certain that you are very clear on exactly what (if any) reservation restrictions might apply to "floating" in this purchase? In some (many?) instances, "floating" involves specific and limited week numbers or seasons, outside of which you essentially cannot actually make a reservation at all. If your intended / target reservation time frame is excluded from reservation under a "float" ownership, then you are just plain out of luck. If you can't at least potentially get a reservation there during your particular target season(s) of interest, you are just wasting your money. I personally learned this lesson (...yes, the hard way) in my very first timeshare purchase of a "floating" week several decades ago. Fortunately, it was a resale market purchase at $1.5k and soon resold for less than that when I discovered (...too late) that the "float" reservation limitations basically made that particular SW FL purchase completely useless to me.

2. In no system can you ever "verify" or "guarantee" that you can "easily exchange to other locations if (and just as important, when) you want".
Regardless of the system or exchange company, space availability rules all --- supply and demand always control and dictate actual availability.

 

[presley]

You can look on Ebay right now and buy any sized contract for $1. Many of those will include all the closing costs.

I bought 2 that way, but for California/west club. It's a pretty nice system. The MFs are quite a bit higher than similar systems, but you can easily book within your club at the 12 month mark. When the other clubs open, some will be easier than others. Overall, I like my Shell club.

 

[DeniseM]

I like this resort, BUT:

-That Price is high

-Generally, maintenance fees are high in Hawaii - if you want a trader, you can find a much lower cost timeshare to use for trading. I would not buy this, unless you plan to use it almost every year.

-Trading for exactly what you want is never easy.

My suggestion: Put this on hold and hang around with us for awhile to make sure this is really what you want and a good deal.

 

[Passepartout]

Is it a good deal?

Who knows. But I can say for sure that if it's a developer purchase, better deals can be had at resale. Much better.

I'd advocate not completing the purchase, then hanging around TUG for a while learning about that- and other- systems to see which, if any are a better fit for you and your family.

If it turns out that the Shell purchase is the best for you, the same 'deal' will always be available. No developer timeshare purchase is 'today only, and just for you' regardless of what some salesman tells you.

That you are asking if it's a good deal, or 'right' for you indicates that you have some learnin' to do.

Welcome to TUG, the university of timesharing.

Jim

 

[raygo123]

One other thing is that it is managed by Wyndham. I think they took over shell due to financials, some will correct me if wrong. I would be curious to see if any increase in mf are coming or assessments.

Sent from my Nexus 7 using Tapatalk

 

[Ty1on]

We are in escrow on a Shell Vacations Club - Kauai Coast Resort at the Beachboy.

-2 bedroom
-Floating
-7000 points + 7000 banked already

$8500 + closing of around 300.00

What should we be sure to check for before closing?

How do we verify that we can easily exchange for other locations if we want?

We like this resort a lot and are excited about this

1. You aren't buying Kauai Club @ Beachboy, you are buying Shell points Hawaii Club, with reservation priority in Hawaii and Las Vegas (Your window to reserve opens before members of other regional clubs). Of course, that can get you into Beachboy or any other Club resort if you reserve early enough.

2. Do you know what the maintenance fees are for Shell? They are pretty high, compared to some other systems with presence in Hawaii.

3. As Presley mentioned, you can get Shell points virtually free, and virtually any time. Your deal is a horrible purchase.

 

[Ty1on]

One other thing is that it is managed by Wyndham. I think they took over shell due to financials, some will correct me if wrong. I would be curious to see if any increase in mf are coming or assessments.

Sent from my Nexus 7 using Tapatalk

Wyndham took over a couple years ago. They stripped out the daily maid service, breakfasts, and papers, and I understand they did increase the MF a little, but that should be fairly stabilized.

 

[alexadeparis]

As a Shell owner I concur, DO NOT BUY at THIS PRICE. The banked Points are worth about $1700 in Maintenance Fees. The contract itself is worth $1 or negative value. Take it from someone who owns 7550 points in Hawaii club.

 

[HudsHut]

http://www.ebay.com/itm/SHELL-VACAT...REE-CLOSING-/151826108252?hash=item23598a8f5c

There are many more like this one there too...
this one for 10K:
eBay item number:
321869367654


Lose whatever deposit you may have made, and get out.

 

[JerryCaldwell]

1. You aren't buying Kauai Club @ Beachboy, you are buying Shell points Hawaii Club, with reservation priority in Hawaii and Las Vegas (Your window to reserve opens before members of other regional clubs). Of course, that can get you into Beachboy or any other Club resort if you reserve early enough.

2. Do you know what the maintenance fees are for Shell? They are pretty high, compared to some other systems with presence in Hawaii.

3. As Presley mentioned, you can get Shell points virtually free, and virtually any time. Your deal is a horrible purchase.

Fees are 1900.00 / year

 

[Ty1on]

Fees are 1900.00 / year

See the link on the post above yours. As long as the MF doesn't scare you away, you can do yourself a favor by winning that ebay auction. It won't take much to win it. 29 days left on the auction. I'd bet he'd take it down today for $100.

 

[JerryCaldwell]

You can look on Ebay right now and buy any sized contract for $1. Many of those will include all the closing costs.

I bought 2 that way, but for California/west club. It's a pretty nice system. The MFs are quite a bit higher than similar systems, but you can easily book within your club at the 12 month mark. When the other clubs open, some will be easier than others. Overall, I like my Shell club.

How do you ensure you are dealing with an honest seller?

Is there a closing checklist that we could use for due diligence before closing?

Thank you all for the input!!

 

[DeniseM]

How do you ensure you are dealing with an honest seller?

Is there a closing checklist that we could use for due diligence before closing?

Thank you all for the input!!

Scroll up to the ADVICE PAGE link in the red bar at the top of the page, and you will find many articles about buying resale.

One of the best ways to protect yourself is to use a reputable title company, but it is common for ebay sellers to want to use their own company.

Also - if you find an Ad you are interested in, post a link to it here and ask for input.

 

[Passepartout]

How do you ensure you are dealing with an honest seller?

Look for those with many positive feedbacks. Probably not a good idea to buy a first sale. Ask for an estoppel letter to be sure of what is actually being sold.
Ask here. Look at the forum stickies about 'trusted timeshare businesses.' Many- if not most TUGgers have bought on eBay. Ultimately, though, an element of trust is involved. But really, we are talking about a sale of from a few bucks to a few hundreds- not tens of thousands of dollars.

Most important, do some reading. Timeshares are easy to buy, and hard to sell. There is no hurry. The good deals are not going anywhere. Rent a few times. Good rentals can be found up in the TUG Marketplace in the red stripe above here. For even better deals, check the 'Last Minute Rentals' forum for rentals available within 45 days from move in. Maximum price there is $100/day, so many of those are rented for less than their underlying maintenance fees.

Happy hunting.

Jim

 

[DeniseM]

Let me ask a question:

WHY do you want to buy at this particular resort?

 

[TUGBrian]

sounds like you just saved a few thousand dollars...welcome to TUG =)

 

[Ty1on]

How do you ensure you are dealing with an honest seller?

Is there a closing checklist that we could use for due diligence before closing?

Thank you all for the input!!

Here is another option. I've taken two contracts from this guy, and I think he's great.

There are three Hawaii contracts listed, 4550, 2500, and 1250 points. All of them are completely free with no closing costs. don't let the maintenance fees scare you. If you take the 4550 and 2500 for 7050 points, the MF will be about the same as the 7000 contract you are looking at. The sum of the two posted contracts is a little high because the minimum fee on the first 1,350 points is applied to each separately. There will be only one minimum fee if you take two contracts.

http://www.timesharenation.com/#!shell-vacation-club/czds

 

[JerryCaldwell]

Here is another option. I've taken two contracts from this guy, and I think he's great.

There are three Hawaii contracts listed, 4550, 2500, and 1250 points. All of them are completely free with no closing costs. don't let the maintenance fees scare you. If you take the 4550 and 2500 for 7050 points, the MF will be about the same as the 7000 contract you are looking at. The sum of the two posted contracts is a little high because the minimum fee on the first 1,350 points is applied to each separately. There will be only one minimum fee if you take two contracts.

http://www.timesharenation.com/#!shell-vacation-club/czds

So if I understand correctly the total MF for both contracts will be lower than the sum of the fees that are shown in the ads? (1251.00 + 861.00 = 2112.00)
I'm guessing I have to contact them to find out the real total?

Thank you for your help!!!

 

[DeniseM]

Hi Jerry - Even though this is a much better price, the maintenance fee is still going to be higher than average, which makes it a poor trader.

Is there a reason you want to buy at this particular resort?

 

[Passepartout]

Jerry, Owning in Hawaii is generally a very expensive option. Maintenance fees are high, and (obviously) you aren't going to be simply driving there to use it. Making you dependent on getting airfare for your whole family- which might work if you have about a bazillion ff miles, but not for most of us. Also as exchanging (trading material), it's very expensive. Much better to own a mainland TS within a days' drive from home with the ability to trade into Hawaii.

Jm

 

[Ty1on]

So if I understand correctly the total MF for both contracts will be lower than the sum of the fees that are shown in the ads? (1251.00 + 861.00 = 2112.00)
I'm guessing I have to contact them to find out the real total?

Thank you for your help!!!

No, Ryan can't tell you the real total, because he only gets that info from the seller. The sum of what the two sellers pay is greater than what you would pay if you own both.

There is a flat fee charged on the first 1350 points. It calculates higher than the per point fee. Since both the sellers are paying separate flat fees, the first 2700 points of the 7050 is at the higher flat fee rate. You would only pay the flat fee rate on 1350 points. I wish I could give you the exact rates, but I don't have them on my fingertip. Just know that the 7,050 points would cost maintenance fees about $12 higher in total than your 7,000 point overpriced contract (only because of the 50 extra points).

To the point of what others are saying to you, if you are not a hawaii-phile who expects to go there every year, there are probably better options for you than Shell Hawaii.

 

[JerryCaldwell]

Hi Jerry - Even though this is a much better price, the maintenance fee is still going to be higher than average, which makes it a poor trader.

Is there a reason you want to buy at this particular resort?

We both love Kauai. We plan to go there yearly, but also have other locations we'd love to see too.

 

[DeniseM]

We both love Kauai. We plan to go there yearly, but also have other locations we'd love to see too.

Have you visited other resorts on Kauai, or only this one?

Don't get me wrong, I like this resort, but the MF is unreasonable. I recommend that you consider other options, before you make your decision.

 

[JerryCaldwell]

OK thanks for the help!! This is kind of mind blowing and I really appreciate all the help!!
I am calling Shell now to try and get the MF directly from their Finance dept.