Marriott Newport Coast Villa resale weeks

[liteonlino]

Any theories regarding the drop in prices for Newport Coast Villa resale weeks on sites like RedWeek? A year or two ago $8K for a platinum week seemed to be the floor but now there are many weeks priced below $7K (even two at $6K). What gives? Are high volume renters dumping weeks because Marriott is cracking down? Did Marriott lower the price at which they exercise ROFR? Do insiders know of some change that will negatively effect week owners (ie, week owners might not get preference on building choice)? I haven't seen this issue discussed on here or other timeshare message boards. Thanks.

 

[davidvel]

Costs (MF+II) continue to rise, so many TS are in a glut right now. This is not really particular to NCV. It is a continued spiral, also likely related to the age of these resorts and their initial buyers/owners. Resale purchasers of MVC weeks face increasing costs as they cannot enroll to avoid II and other expenses, which reduces the value for buyers.

 

[Pamplemousse]

Any theories regarding the drop in prices for Newport Coast Villa resale weeks on sites like RedWeek? A year or two ago $8K for a platinum week seemed to be the floor but now there are many weeks priced below $7K (even two at $6K). What gives? Are high volume renters dumping weeks because Marriott is cracking down? Did Marriott lower the price at which they exercise ROFR? Do insiders know of some change that will negatively effect week owners (ie, week owners might not get preference on building choice)? I haven't seen this issue discussed on here or other timeshare message boards. Thanks.

Check rofr.net to see what is passing for a clue.

But I don’t think MVC has hard thresholds for what they take. It seems to vary even over a short period of time.

I think people list low on red week hoping someone will offer so they can be rid of the week, not caring who pays them or how much.
There are many points listings for under $1 that are highly unlikely to pass rofr, although some have passed this year for $2, but another failed at $2.77.

 

[rcdcowner557]

Costs (MF+II) continue to rise, so many TS are in a glut right now. This is not really particular to NCV. It is a continued spiral, also likely related to the age of these resorts and their initial buyers/owners. Resale purchasers of MVC weeks face increasing costs as they cannot enroll to avoid II and other expenses, which reduces the value for buyers.

Another trend to pay attention to is the percentage ownership of any given property by the MVC Trust. Once the MVC Trust owns a high enough percentage to definitively control the HOA board of any given property, MVW has less incentive to buy back units at that property. Accordingly, if you see a decrease in MVW's exercise of ROFR at any given property, the first question I would ask when considering buying a resale week is what percentage of the units at a property are owned by the MVC Trust, and what has been the trend in that percentage? Even if legacy owners weeks still predominate, I would look at the trend to see whether the MVC Trust is increasing concentration of ownership. If the answer is that the MVC Trust already has a dominant ownership interest or has been increasing its ownership interest in recent years, I personally would not purchase at the given property.

 

[rcdcowner557]

Costs (MF+II) continue to rise, so many TS are in a glut right now. This is not really particular to NCV. It is a continued spiral, also likely related to the age of these resorts and their initial buyers/owners. Resale purchasers of MVC weeks face increasing costs as they cannot enroll to avoid II and other expenses, which reduces the value for buyers.

@davidvel - Your posts suggests that you believe enrolling legacy weeks in MVC points program avoids other expenses? I cannot make sense out of that; would you be able to flesh out your thinking here?

 

[WorldT]

Another trend to pay attention to is the percentage ownership of any given property by the MVC Trust. Once the MVC Trust owns a high enough percentage to definitively control the HOA board of any given property, MVW has less incentive to buy back units at that property. Accordingly, if you see a decrease in MVW's exercise of ROFR at any given property, the first question I would ask when considering buying a resale week is what percentage of the units at a property are owned by the MVC Trust, and what has been the trend in that percentage? Even if legacy owners weeks still predominate, I would look at the trend to see whether the MVC Trust is increasing concentration of ownership. If the answer is that the MVC Trust already has a dominant ownership interest or has been increasing its ownership interest in recent years, I personally would not purchase at the given property.

How can you find out the percentage that is own by MVC?

 

[Dean]

@davidvel - Your posts suggests that you believe enrolling legacy weeks in MVC points program avoids other expenses? I cannot make sense out of that; would you be able to flesh out your thinking here?

Having enrolled weeks carries a yearly club fee but for all enrolled weeks there are savings once enrolled. These include no lock off fees, no change/concellation fees and no exchange fees Marriott (etc) to Marriott. While difficult to justify at current prices, it does add up to quite a bit of savings, esp when one has a number of transactions yearly. Being enrolled also gives you potential access to points reservations which can add flexibility and value to the ownership and general at cheaper yearly fees than owning in the trust.

 

[dioxide45]

How can you find out the percentage that is own by MVC?

This is disclosed in a number of disclosures that are provided when you purchase trust points directly from MVC. This is what I found in the Hawaii disclosure. I think this is from 2022. Based on 700 units at 52 weeks per year, it is about 30%.

 

[dioxide45]

Another trend to pay attention to is the percentage ownership of any given property by the MVC Trust. Once the MVC Trust owns a high enough percentage to definitively control the HOA board of any given property, MVW has less incentive to buy back units at that property.

I don't think Marriott's ultimate goal of reaquring weeks is to obtain board control. Ultimately it is to obtain more inventory they can turn around and sell as points. In other words, make money. Board control might just be a good side effect for them.

 

[dioxide45]

@davidvel - Your posts suggests that you believe enrolling legacy weeks in MVC points program avoids other expenses? I cannot make sense out of that; would you be able to flesh out your thinking here?

Enrolled weeks do not have to pay exchange fees when exchanging through II.

 

[rcdcowner557]

Having enrolled weeks carries a yearly club fee but for all enrolled weeks there are savings once enrolled. These include no lock off fees, no change/concellation fees and no exchange fees Marriott (etc) to Marriott. While difficult to justify at current prices, it does add up to quite a bit of savings, esp when one has a number of transactions yearly. Being enrolled also gives you potential access to points reservations which can add flexibility and value to the ownership and general at cheaper yearly fees than owning in the trust.

Interesting - What you describe appears to provide nice incentives for existing legacy week owners who have the option of enrolling weeks without having to separately buy points to avail themselves of that option.

 

[rickandcindy23]

The fees are high, which is one reason people are dumping them and resale values are low right now. Also, it's tough to get prime summer weeks. It's a competition. Owning two is better than owning one for booking at 13 months out. By 12 months out, weeks are gone. This is what I understand from a friend who owns there and paid big bucks to get summer. He bought a second deeded week to get inventory sooner than one-week owners.

 

[Dean]

Interesting - What you describe appears to provide nice incentives for existing legacy week owners who have the option of enrolling weeks without having to separately buy points to avail themselves of that option.

It has been great for me. I paid the fee to enroll eligible weeks in 2010 but acquired a number of weeks since then. IN 2019 I enrolled all resale weeks (7.5 weeks) I had at the time by buying an Aruba retail week. I have acquired a couple of weeks since then that I'd like to enroll but the cost to do so is prohibitive. IMO the benefit of potential enrollment is dramatically less than it was before the current plan format rolled out in 2022 I believe. Still for the right person there are options that are potentially beneficial but that assumes that having access to points has significant value for that person as well.

 

[DanCali]

The fees are high, which is one reason people are dumping them and resale values are low right now. Also, it's tough to get prime summer weeks. It's a competition. Owning two is better than owning one for booking at 13 months out. By 12 months out, weeks are gone. This is what I understand from a friend who owns there and paid big bucks to get summer. He bought a second deeded week to get inventory sooner than one-week owners.

They allegedly release 50% of the inventory at 12 months so "weeks are gone" is not accurate. In fact, is that is true, then the inventory available at 12 months will be more than what is at 13 months since some of the 13 month inventory is also gobbled up earlier by 3+ week owners who book as far as 14+ months out.

I've had situations where my desired checkin day was not available at 13 months but I was able to switch at 12 months via phone. That said, at 12 months people are booking online and on the phone so they don't last long.

 

[DanCali]

Any theories regarding the drop in prices for Newport Coast Villa resale weeks on sites like RedWeek? A year or two ago $8K for a platinum week seemed to be the floor but now there are many weeks priced below $7K (even two at $6K). What gives? Are high volume renters dumping weeks because Marriott is cracking down? Did Marriott lower the price at which they exercise ROFR? Do insiders know of some change that will negatively effect week owners (ie, week owners might not get preference on building choice)? I haven't seen this issue discussed on here or other timeshare message boards. Thanks.

This is what a ~40% increase in MFs over 3 years does...

Resale prices should reflect the spread between MFs and rental value. Dues are 40% higher and rental prices are probably lower than 3 years ago as more owners try to rent to recoup MFs.