Marriott BUYBACKS AND TAKEBACKS [2012 / Ongoing]

[kjd]

It's a little peculiar what Marriott seems to be doing with buy-backs. They only seem to favor certain locations like MGV, MGC, MOC, etc. MGV for example they would not buy-back an EOY Plat from me but would list it for resale. They sold it in three weeks. I then listed an EOY MGV gold and they sold it in two days. I can only attribute it to the fact that their sales office is next to MGV compared to the other Orlando locations. I'm not sure they're buying back any other resort weeks in Orlando.

Marriott bought back my two bedroom EY MGC rather than list it. It seems to me that they have more than enough prospective customers to deal with but they concentrate on certain locations. We know that VAC is doing well with this business plan. I was told that they would not buy back any EOY's, even at locations where they were buying the EYs. However, they will readily list an EOY and will sell it quickly. The only conclusion that I can make is that they switch customers to an EOY when they can't sell them on a full year direct purchase. They make 40% on an EOY sale that they would have lost. It costs them nothing to do it.

 

[Saintsfanfl]

I think your assumptions are correct but I thought there was a direct buyback offer on an eoy a while back. Perhaps it was a list and not really a buyback offer.

 

[dioxide45]

The only conclusion that I can make is that they switch customers to an EOY when they can't sell them on a full year direct purchase. They make 40% on an EOY sale that they would have lost. It costs them nothing to do it.

Actually, I think what they are using these EOY weeks for are the resale/DC point bundles. When we were at Waiohai in November, this is what the rep tried to sell us on. After they knew we wouldn't buy pure trust points straight up. Buy a EOY week from the Marriott Resale Dept and an equivalent amount of DC points. I think these EOY are attractive since a week that is worth 2,000 enrolled points can be sold with only 1,000 direct DC points. Giving the new buyer 2,000 EOY elected points and 1,000 EY trust points.

Do realize that the 40% isn't pure profit. They still have to pay sales commissions and any other marketing costs associated with selling the week.

 

[Okies]

ROFR

I was notified today that Marriott is exercising their ROFR on two purchases that were in the works. Willow Ridge 2/2 platinum 1900.00, and 2 weeks platinum DSV II for 10K (being purchased together from same seller). Bummer!

 

[MOXJO7282]

"Dear Monarch Oceanfront in Sea Pines Owner:

You are receiving this communication as a result of registering an interest to sell your ownership with our Resale Operations Department. At this time, Marriott Vacation Club International (MVC) is extending an offer to purchase your Sport Season week 40, 2 Bedroom, Garden View week at Marriott’s Monarch Oceanfront in Sea Pines for $2,450 less $750 administrative and processing fees. At closing, your approximate net proceeds will be $1,700*. The first year occupancy to MVC will be 2015; therefore, you will retain usage for 2014 and you are responsible for payment of the 2014 maintenance fee. Should you decide to accept this offer, you are agreeing to relinquish any rights to usage of the timeshare in 2015 and future years."

Received the above offer from Marriott. After consideration I realized it's not worth it to sell something I paid $154 for and rents every year even though I probably can't use for a number of years and the profit represents 10+ years of rental profit.

Sure its shoulder season but its a 1st/2nd week of Oct in HHI so that is super nice so I'm taking chance it will continue to rent and MF will stay manageable until I can start to use on a regular basis, at which time it becomes very valuable to me personally when I can align with my GO OF weeks and my HP week 40 and spend a glorious month in HHI.

The bean counter in me says take the money now because things change and the deal looks good on paper.

 

[Saintsfanfl]

The bean counter in me says take the money now because things change and the deal looks good on paper.

I wouldn't take the deal if I were in your shoes. This is a buyback for the trust but they sell it for $12k as a resale broker. Sit tight and stay on the broker list and your net will be $7,200. They will even tell you how many are on the list if you ask. They have done it for me.

Even if you want to go with a buyback, based on the trending economy and the trending actions of MVCI that offer price is likely to rise. It's worth the wait and your worst case scenario is you will still make rental profit in the mean time.

 

[SueDonJ]

See this post for an explanation of why I'm copying/pasting the "Sell Weeks" info page from marriottvacationclub.com, here.

Sell Your Week with Confidence
Licensed real estate professionals in the Marriott Vacation Club® Resales Operations department offer personalized service to Owners who have an interest in selling their timeshare week.

Special Benefits of Selling Your Timeshare Here
A Marriott Vacation Club representative is ready to discuss your viable resale options.*
No up-front fees.
Brokerage commission is not due until the time of closing.
Marriott Resorts Hospitality Corporation, or its affiliates, will market and sell your week to consumers seeking resales.
Purchasers of eligible inventory will have the ability to trade their timeshare for Marriott Rewards® points.
Your resales transaction will be managed from contract through closing with personalized service.

Please call 866-682-4547 to speak with a Marriott Vacation Club professional Monday-Friday, 9 a.m.-5 p.m. ET.

*Week must be owned at a Marriott Vacation Club resort property.

Pricing and inventory availability are subject to change without notice. Resale properties are brokered through Marriott Resorts Hospitality Corporation; Licensed Florida Broker. Colorado resale properties are brokered through Marriott Resorts Sales Company, Inc.; Licensed Colorado Broker.

On that page there's also a "Request Information" link to this page in which you can input your info as an email inquiry and get a direct response. (No promises that this link or format will continue to work but it's worth a try.) That page also includes another phone number, 866-389-1458.

 

[LMK]

MGV Plat 2 bedroom

Just called today (4/21/14). Two offers - add to the resale list. Would be # 17 on the list. She said they sold 22 units this year alone. List of $8900 would net me $5340. Second option was repurchase for $4900, net $4400.

I chose option # 2 and they said it should close in 120 days. Effective ownership date would be 1/1/15.

************************
RE: GV*XXXXXXX

Thank you for contacting our Resale Operations department. It is our pleasure to assist you with the repurchase of your ownership at Marriott’s Grande Vista, described as GV*XXXXXXX. This email serves as confirmation that we have received your notice of acceptance of our offer dated April 21, 2014. We will initiate the repurchase process for the amount of $4,900 less $500 in administrative fees. At closing, your approximate net proceeds will be $4,400*. The first year occupancy to MVC will be 2015; therefore, you will retain usage for 2014 and you are responsible for payment of the 2014 maintenance fee.

The closing timeframe for your sale is anticipated to be 120 days. You may expect to receive settlement documents at your mailing address just prior to closing. If you have special delivery requirements, please notify us so that we can ensure that the settlement documents reach you in a timely manner. Please note that your failure to execute the settlement documents or return them to Marriott in a timely manner may result in the termination of the repurchase transaction.

Your acceptance of this repurchase offer relinquishes all rights and interest in use of the timeshare interest for 2015. Accordingly, any usage option or reservation you have made for 2015 will be cancelled. Should you subsequently terminate the repurchase transaction, we cannot guarantee the reinstatement of any reservation or usage option that may have been previously confirmed for you.

Please know that if you have an exclusive listing with another broker, based on the language of your contract, you may be obligated to pay a commission to that broker.

If you choose not to continue with the repurchase, contact our office immediately at 1-866-682-4547 or resale.operations@vacationclub.com. Our office is open Monday-Friday, 9am-5pm, ET.

 

[SueDonJ]

I came across what I think is a new page on my-vacationclub.com related to Marriott's Resale Operations, link here. (The Weeks FAQ has been updated to include this info and thread.)

"The Resale Operations department provides transactional and counseling services to Owners who are interested in divesting their interest. There are several programs available to Owners:

Registration Program - All Owners are eligible for the registration program. This is a waitlist for Owners who are interested in selling; however a listing or repurchase may not be readily available. Owners are registered in date order and will subsequently be contacted when either the listing program or repurchase program is available.

Listing Program - The listing program is established at domestic resorts that are 100% sold out of developer inventory. Marriott Vacation Club will broker a transaction between an Owner and a buyer. The commission for the transaction will be 40% of the contract price.

Repurchase Program - Periodically, Marriott Vacation Club will purchase Vacation Ownership interest(s) directly from an Owner. The pricing and terms are subject to change without notice. This program is established at international resorts that are 95% sold out of developer inventory.

Right of First Refusal - In accordance with the Public Offering Statements for Marriott Vacation Club an Owner who is interested in selling their timeshare privately is required to comply with the Right of First Refusal policy. Owners must notify Resale Operations of their intention to sell. At this point, Marriott Vacation Club has the option to either exercise the option, i.e. a direct repurchase in accordance with the terms of the external contract, or waive the option, i.e. the Owner is free to proceed with the external transaction. A formal waiver will be prepared, in recordable form, and forwarded to the Owner and/or Title Company that has made the request. Requests are responded to in a timely manner and in accordance with the requirements in the Public Offering Statement.

The Resale Operations department is located in Orlando, FL and services all Marriott Vacation Club Owners (domestic and international**). The hours of operation are 9: 00 am - 5: 00 pm (ET), Monday through Friday. Owners may contact the department as follows:

E-mail: resale.operations@vacationclub.com
Toll-Free: 866-682-4547 or 877-682-4547
Direct Dial: 407-903-6160
Fax: 407-903-5995

Right of First Refusal Requests: mvcirofr@vacationclub.com

* Proceeds will be applied to any existing loan balance. The seller's account must be current on all maintenance fee payments, loan payments, and tax payments (where applicable).
** Owners of Marriott's Phuket Beach Club, please contact Owner Services"

 

[SnowDogDad]

Thanks Susan, that might be very helpful.

I'll toss in my own experiences here... Marriott rarely exercises their ROFR at my resort (Marriott Grand Residence Lake Tahoe). This resort is a bit unique/weird in that most units are fractionals and most are 13 weeks per year. But, the developer did break up some in to 3-week and 5-week seasonals. (5 continuous ski weeks, 3 continuous summer weeks, etc...).

I was bored one day an compared the property tax records from 2005 with 2013 for our property. Marriott owned 9% of the property in 2009 and now owns almost 16%. Apparently most of this through foreclosures. They do own a larger percentage of the high-season "seasonal" fractions, which would be logical.

I just bought another fraction this past year. It took Marriott 20+ days to exercise their ROFR. They explained that the person that normally does that was on vacation. (I would have imagined a committee or group would do it.)

 

[022520]

Successful ROFR Strategy

Just bought an eoy odd, 2bdrm plat lo at the Grande Vista for a very good price and it passed ROFR. However, it was an unusual situation. The owner had already locked out, reserved and deposited with II the studio side. Due to this, the owner made some very generous financial concessions in the sale. To complicate matters for Marriott further, he and I agreed to resrve a week for the 1 bdrm side and deposit it with II and even trade it before the sale and before it was submitted to Marriott for the ROFR. So both sides of the LO had been traded for 2015 before the sale was completed. I guess it was so messy that Marriott passed. Additionally, since we had done the trades, the first year available for Marriott was 2017.

Not saying that this will work every time but if you want to try something like this and don't mind the extra work, it might help you acquire a week that otherwise might be ROFR'ed.

 

[sjordan14]

MFC - buyback offer!

After being told "no" numerous times, Marriott sent out an email today offering to buy my Silver week at MFC.

I also have a potential private buyer that's been moving slowly towards an offer. Now that I have a firm deadline from Marriott, this may light the fire under that buyer.

If I go the private route, I need recommendations for a closing agent/escrow that is nimble enough to get this fully in place before my Marriott offer expires.

I know that it will take some time to get through the paperwork and I'm ok with that. I just want to get it started.

 

[GregT]

After being told "no" numerous times, Marriott sent out an email today offering to buy my Silver week at MFC.

I also have a potential private buyer that's been moving slowly towards an offer. Now that I have a firm deadline from Marriott, this may light the fire under that buyer.

If I go the private route, I need recommendations for a closing agent/escrow that is nimble enough to get this fully in place before my Marriott offer expires.

I know that it will take some time to get through the paperwork and I'm ok with that. I just want to get it started.

What's Marriott's offer and when does it expire?

It may be worth it to take the certainty of the Marriott offer versus the potential superior offer.

Thoughts?

Greg

 

[sjordan14]

Greg

I would prefer to not post the offer as the buyer may be reading here as well. Marriott offer expires on Aug. 6.

If the private buyer wants the week, they are going to submit their info to the closing agent and get a deposit into escrow before the Marriott offer expires.

The only wrinkle are the closing fees. Turns out that the total fee to close and transfer in USVI is pricey due to having to involve local attorney there for recording.

Stuart

 

[jimf41]

Just for fun I asked MVCI if they would make me an offer on my week 7 at MFC. They did and it was pitiful IMO. About 25% of what I paid them for it in 2005. I don't think they really wanted the week.

 

[mj2vacation]

Having sold what may have been the first resale at MFC in 2007 (relative was a MI associate, so got with discount and bought the week they went on sale, so made out ok), I can tell you that going the Marriott route may be easier. St Thomas is HORRIBLE at deed recording among many many many other issues. Granted, that was a few years ago, but having recently looked at another purchase on the islands, I deferred due to their lack of urgency and chaotic approach to property transfers. Personal experience, others may differ.

Even though I sold privately, I got Marriott involved at a very high level, and they wound up handling the closing due to the then apparently unknown tax issue among others. st Thomas actually sent me a bill for a huge amount of money when we initiated the transfer.

Marriott apparently works with a very connected title company there.

I can not imagine it has not improved, as the transfer could not have gotten any worse.

Best of luck.

 

[rylan]

Yes, St. Thomas has a tax fee for selling property to non-family members of something like 2% which is due along with the deed recording fee... and it takes them forever to do anything. I strongly suggest working with a local lawyer if you want to buy/sell on there.

 

[rylan]

So does anyone know if these owner trust weeks that Marriott is repurchasing have to remain in the trust, or can they suck them out and turn them into the DC points system?

I thought the trust is supposed to be 'secure' and weeks are weeks... but does Marriott have some kind of loophole to draw down the total number of weeks to feed the points beast?

 

[Saintsfanfl]

So does anyone know if these owner trust weeks that Marriott is repurchasing have to remain in the trust, or can they suck them out and turn them into the DC points system?

I thought the trust is supposed to be 'secure' and weeks are weeks... but does Marriott have some kind of loophole to draw down the total number of weeks to feed the points beast?

The trust is the DC points system. Turning them into points is exactly what happens when they add them to the trust.

 

[kds4]

I came across what I think is a new page on my-vacationclub.com related to Marriott's Resale Operations, link here. (The Weeks FAQ has been updated to include this info and thread.)

"The Resale Operations department provides transactional and counseling services to Owners who are interested in divesting their interest. There are several programs available to Owners:

Registration Program - All Owners are eligible for the registration program. This is a waitlist for Owners who are interested in selling; however a listing or repurchase may not be readily available. Owners are registered in date order and will subsequently be contacted when either the listing program or repurchase program is available.

Listing Program - The listing program is established at domestic resorts that are 100% sold out of developer inventory. Marriott Vacation Club will broker a transaction between an Owner and a buyer. The commission for the transaction will be 40% of the contract price.

Repurchase Program - Periodically, Marriott Vacation Club will purchase Vacation Ownership interest(s) directly from an Owner. The pricing and terms are subject to change without notice. This program is established at international resorts that are 95% sold out of developer inventory.

Right of First Refusal - In accordance with the Public Offering Statements for Marriott Vacation Club an Owner who is interested in selling their timeshare privately is required to comply with the Right of First Refusal policy. Owners must notify Resale Operations of their intention to sell. At this point, Marriott Vacation Club has the option to either exercise the option, i.e. a direct repurchase in accordance with the terms of the external contract, or waive the option, i.e. the Owner is free to proceed with the external transaction. A formal waiver will be prepared, in recordable form, and forwarded to the Owner and/or Title Company that has made the request. Requests are responded to in a timely manner and in accordance with the requirements in the Public Offering Statement.

The Resale Operations department is located in Orlando, FL and services all Marriott Vacation Club Owners (domestic and international**). The hours of operation are 9: 00 am - 5: 00 pm (ET), Monday through Friday. Owners may contact the department as follows:

E-mail: resale.operations@vacationclub.com
Toll-Free: 866-682-4547 or 877-682-4547
Direct Dial: 407-903-6160
Fax: 407-903-5995

Right of First Refusal Requests: mvcirofr@vacationclub.com

* Proceeds will be applied to any existing loan balance. The seller's account must be current on all maintenance fee payments, loan payments, and tax payments (where applicable).
** Owners of Marriott's Phuket Beach Club, please contact Owner Services"

The above contact information is good. I just inquired about the resale value of one of my MGV 3BR Gold Season Lock-Off units. Marriott offered $3100 cash on the spot ($2600 net after their $500 Admin Fee). I also learned that there are currently 2 listings for this same type of unit being brokered by them (and a wait list of some 48 other owners who are interested in selling theirs as well). At a Marriott Resales price of around $9500 (less %40 commission), the seller would receive about $5700. However, Marriott Resales said they only market a couple of units at a time, which is a disincentive to join the waitlist as owner number 49. I could probably pass it through my estate faster than have Marriott resell it (if I were actually interested).

 

[Saintsfanfl]

However, Marriott Resales said they only market a couple of units at a time, which is a disincentive to join the waitlist as owner number 49. I could probably pass it through my estate faster than have Marriott resell it (if I were actually interested).

I disagree. Only "marketing" a few units at a time is semantics. There is only one unit type. They market that unit type all the time and a potential buyer doesn't know who the real owner is until they contract to buy. The meaning behind "only a few at a time" is the written listing agreements that they send out when you are higher up on the list. If a buyer wanted 10 units they wouldn't tell them no, they would just send out more listing agreements to sellers on the list. They could easily send them out to everyone but it leads to invalid listings because owners change their mind.

The 3BR MGV likely moves fairly quick. Unless you are desperate I would opt for the brokered list price which is more than double.

In reality they don't really "market" any of the resale units. The buyers come to them. The only time they mildly push a resale unit is when they attempt a combo package during a presentation. If they actively marketed the resale weeks they would all be sold in a flash. Most people in a presentation have no idea it's even an option.

 

[rsackett]

After being told "no" numerous times, Marriott sent out an email today offering to buy my Silver week at MFC.

I also have a potential private buyer that's been moving slowly towards an offer. Now that I have a firm deadline from Marriott, this may light the fire under that buyer....

That is funny. I lust got an e-mail from Marriott offering to buy my Harbour Point week 32 today. Yesterday I accepted a private sale verbal offer for the same week.

I also need closing company recommendations.

Ray

 

[kds4]

That is funny. I lust got an e-mail from Marriott offering to buy my Harbour Point week 32 today. Yesterday I accepted a private sale verbal offer for the same week.

I also need closing company recommendations.

Ray

We have had a positive experience working with Timeshare Resale Closing Services at www.trcsinc.com. Ask for Karina.

 

[Saintsfanfl]

We have had a positive experience working with Timeshare Resale Closing Services at www.trcsinc.com. Ask for Karina.

It looks like they do the same thing as JRA but their fees are higher. Florida starts at $350 and other states start at $395. JRA charges $275 for all states.

 

[californiagirl]

I want to thank sjordan14 for your info about Frenchman's Cove. We were in the process of doing a deed back to Marriott for our silver week when I saw this post last night. (The documents had just come to be signed and notarized.) When we started the process back in Feb, they were not buying back. I called this morning and they cancelled the deed back and confirmed the buy back!:whoopie: So happy they were slow at the deed back process.

Our vacationing has changed somewhat. We have bought a vacation home and will be selling our DSV. We will keep our Maui and DVC timeshares and purchase a Waiohai week. While we loved Frenchman's Cove, it is a hoof to get there from SoCal. Hawaii is only a 5 hour flight.

Once again my tug friends have come through. Thank you again.