Is there a "How to buy a re-sale Timeshare" Sticky?

[rboesl]

I happened to run across a post by Limace asking about the process of buying a re-sale timeshare. I looked through this forum but what I found was a lot of info about how to Sell or Rent but nothing about how to buy. Limace asked a very simple question about how long the process would take from making the offer to being able to use the new purchase.

There's a lot of good information on this site about the subject. But, it doesn't seem to have ever been consolidated for reference. I would think something like that would have to cover things like:

• What information should be requested of the seller?
• What good resources for performing the transfer (ie. LTTransfers) exist?
• What's a reasonable expectation for the transaction to be completed?
• What special things should the buyer look for in an advertisement?
• Are there any "gotcha's" that a buyer has to be aware of, like contract restrictions that would revert a contract from points to weeks?

I'm sure there's other questions about the process that I haven't listed.

 

[Brianhillmaui]

I've purchased 4 timeshares (all resale) and 3 out of the 4 were free listings. Here's my perspective:

1. I request the estoppel letter from the management company (Hilton, Hyatt etc). This will show the week, points, balance for fees etc. This is a must have so you know you are getting what was advertised. Some management companies will charge a fee. It's up to the buyer and seller to determine who's responsible for the fee. In my transactions, the seller paid this fee. The fee is small, don't sweat it.

2. I like LT transfers. I've also worked with sellers who like other companies. It's up to the buyer and seller to determine which company to use.

3. Once the paperwork is sent to the county to transfer the deed, most have turned around the paperwork in 2-4 weeks. After the new deed is issued, the escrow company will send the deed and other paperwork to the management company. Most management companies take 2-4 weeks to setup the account once they receive the paperwork. The escrow process is much slower in the timeshare world than a typical real estate transaction. Patience is a virtue. Plan on a minimum of 6-8 weeks from start to finish. I had one transaction take nearly 16 weeks.

4. Some programs limit benefits for resale owners. As an example, Hyatt doesn't allow resale owners to transfer points to the World of Hyatt program. Not an issue for me as the conversion rate is horrible anyway and it's not a good use of the maintenance fee that you'll pay each year. Other programs don't allow resale owners to qualify for their elite status. Again, the benefits just aren't worth it in my opinion. I'd much rather save $20k-$50k on my contract and they can keep their elite status.

I hope this helps. This is just my perspective based on my experience on buying (2) Hilton and (2) Hyatt contracts.

 

[Limace]

Thanks for posting this-I will definitely follow .


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[nrslori]

I've purchased 4 timeshares (all resale) and 3 out of the 4 were free listings. Here's my perspective:

1. I request the estoppel letter from the management company (Hilton, Hyatt etc). This will show the week, points, balance for fees etc. This is a must have so you know you are getting what was advertised. Some management companies will charge a fee. It's up to the buyer and seller to determine who's responsible for the fee. In my transactions, the seller paid this fee. The fee is small, don't sweat it.

2. I like LT transfers. I've also worked with sellers who like other companies. It's up to the buyer and seller to determine which company to use.

3. Once the paperwork is sent to the county to transfer the deed, most have turned around the paperwork in 2-4 weeks. After the new deed is issued, the escrow company will send the deed and other paperwork to the management company. Most management companies take 2-4 weeks to setup the account once they receive the paperwork. The escrow process is much slower in the timeshare world than a typical real estate transaction. Patience is a virtue. Plan on a minimum of 6-8 weeks from start to finish. I had one transaction take nearly 16 weeks.

4. Some programs limit benefits for resale owners. As an example, Hyatt doesn't allow resale owners to transfer points to the World of Hyatt program. Not an issue for me as the conversion rate is horrible anyway and it's not a good use of the maintenance fee that you'll pay each year. Other programs don't allow resale owners to qualify for their elite status. Again, the benefits just aren't worth it in my opinion. I'd much rather save $20k-$50k on my contract and they can keep their elite status.

I hope this helps. This is just my perspective based on my experience on buying (2) Hilton and (2) Hyatt contracts.

Thanks for posting!! I am in the process of buying my first timeshare (resale of course ) and this really helps answer a few questions for me .

 

[theo]

Are there any "gotcha's" that a buyer has to be aware of, like contract restrictions that would revert a contract from points to weeks?

Fwiw, I will share a "learning experience" from my own first resale timeshare purchase, several decades ago now. It pertains to "floating" or "flex" weeks and is applicable at independent resorts and / or "chains" (such as HGVC) that have various "flex" versions.

I knew exactly where I wanted to acquire a week (coastal SW FL). I knew exactly when I wanted to go there (only in winter). I knew that I would buy only via resale and preferably at an "independent" resort, rather than within a "chain". I commenced my search for the right resort / location / week and ultimately found what I thought might be the perfect acquisition. But....

It was a "floating" week, annual use. After speaking with the seller, I retrieved the deed online. Nowhere within that recorded deed was there any reference to any "seasons" or "week ranges" or any other identification or mention of any reservation limitations of any kind, nor did the seller disclose any such constraints to me. I was too inexperienced back then to dig deeper and ask all of the right questions and / or to contact the resort directly to specifically inquire about any reservation limitations (none were mentioned in either the deed or in the estoppel). I reached an agreement with the seller on price and closing details and bought the week.

Fast forward a few months. I contacted the resort to make my first reservation and promptly learned (for the first time and to my chagrin and surprise), that "floating" week owners at that resort (as at most resorts in coastal SW FL, I later learned) were specifically excluded from reserving any week between weeks 5--15, inclusive. Turns out those weeks are exclusive to fixed week owners at many / most SW FL places). This "excluded" time period (most of winter) was and remains the only time period in which I would have any interest in being in Florida. Embarrassed and humbled by my own failure to have learned everything that I had needed to know about my purchase, I promptly sold that "floating" week for peanuts. I had not paid very much for it, so the financial loss was not significant.
Unlike my seller, I very clearly and openly disclosed those very substantial reservation constraints to my buyer.

The bottom line is that on Planet Timeshare, the devil is always in the details. Failure to learn all pertinent details is at your peril.

 

[rboesl]

As always the people on TUG are extremely helpful. I'll continue to watch additional posts to this. But, I'll try to consolidate this info into a single post and see if it can be made into a sticky in this forum.

 

[TUGBrian]

are a few articles in the advice section that discuss buying resale:

Best Timeshare Resale Prices

How do I find the best Timeshare Resale Prices?

tug2.net

Timeshare Purchase Checklist if you plan on buying a Timeshare

Timeshare Buying Help and Advice

tug2.net