Pitfalls of buying resale

[Moparman42]

Good day, all!

I am an owner at Westin Nanea. I pre purchased from the developer in October of 2016. I am using my timeshare and am happy to have it.

I am considering purchasing more. Nanea wants to sell me the other half (EOYE) for 26k, or I can get WKORV for 33k.

That being said, I want to purchase resale at WKORV due to it being a mandatory resort. I see them here and on Advantage for 6-7k for EY 2 bedroom. Where does the Right to first refusal come into play and how does that work? I guess I pay for the property and if the sale does not go through, I get my money back and try again?

what kind of luck have people had purchasing WKORV resale?

Any advise will be appreciated. Thank you

michael

 

[EnglishmanAbroad]

The way I believe it works is they get to see what your offer is and have so many days (14?) to match it. I don't think you pay anything until the ROFR is waived.

Put yourself in their shoes. Would you buy something under the ROFR for $7K that you could then sell on to unsuspecting buyers for $33K? I guess they have a ceiling they are prepared to go to that moves up/down based upon inventory/demand etc.

There's an active thread here with some recorded transactions:

https://tugbbs.com/forums/index.php...starwood-rofr-transactions-here.196786/page-5

 

[tschwa2]

ROFR means the owner has to find a buyer and then submit the purchase contract to the developer who has a period of time usually 15-30 days based on the original ROFR documents in the offering statement when the resort was set up. Some owners insist on payment while waiting for the ROFR (to be returned if the developer exercises its rights), while some may ask for a deposit, and others not require any payment until the ROFR has been waived.

 

[Moparman42]

The way I believe it works is they get to see what your offer is and have so many days (14?) to match it. I don't think you pay anything until the ROFR is waived.

Put yourself in their shoes. Would you buy something under the ROFR for $7K that you could then sell on to unsuspecting buyers for $33K? I guess they have a ceiling they are prepared to go to that moves up/down based upon inventory/demand etc.

There's an active thread here with some recorded transactions:

https://tugbbs.com/forums/index.php...starwood-rofr-transactions-here.196786/page-5

thank you, that was a very informative thread and answers my question. so, the 27k for the other half of my Nanea was heavily discounted by the developer during my stay, if I can get that still, I may try. But I will also talk to Syed when I am back on the Island.

 

[carpie99]

thank you, that was a very informative thread and answers my question. so, the 27k for the other half of my Nanea was heavily discounted by the developer during my stay, if I can get that still, I may try. But I will also talk to Syed when I am back on the Island.

I think $27K is still a pretty bad deal for an EOY even if heavily discounted.

 

[Moparman42]

I think $27K is still a pretty bad deal for an EOY even if heavily discounted.

Still weighing my options. I will talk to Syed and the 'salespeople' at nanea and see what I can pull off. I might even consider Princeville depending on what I think of the resort when I check it out in January.

So, the REAL trick is to find somebody who has one and wants to get rid of it and have them 'gift' it to you, then pay them? I wonder if that would work..... hmmmmn

 

[DeniseM]

You are unlikely to find a Vistana Hawaii resort for free.

The most likely "mandatory" resort to get for cheap or free is Vistana Villages (Bella and Key West phases only).

Please be aware that with both Nanea, and Princeville, the Staroptions do not transfer when purchased resale, so if you want Staroptions, you should buy at a "mandatory" resort:

MORE INFO from the Vistana FAQ at the top of the page:

8) If I buy a Starwood timeshare, resale, can I exchange it for other Starwood timeshares using the Starwood Vacation Network? -
Only if you buy it at one of five "Mandatory" Resorts.

9) What do Mandatory and Voluntary mean?

a. If a resort is Staroption "Mandatory," it means that when the week is sold to a new owner (resale) the Staroption value of the week transfers to the new owner, and the new owner has the right to exchange his timeshare in the Starwood Vacation Network. These resorts are Staroption Mandatory:

* Harborside at Atlantis
* Vistana Villages (Bella and Key West phases only)
* Westin St. John (Virgin Grand - Hillside only)
* Westin Ka'anapali & Westin Ka'anapali-North
* Westin Kierland Villas

b. If a resort is Staroption "Voluntary," it means that the Staroption value of the week DOES NOT transfer to the new owner when it is resold, and the new owner DOES NOT have the right to exchange his timeshare in the Starwood Vacation Network.

19) Can you summarize the difference between owning a 1) DEVELOPER unit and owning a 2) MANDATORY resale and a 3) VOLUNTARY resale unit?

If you buy from the developer:
•You will pay top dollar - and lose 50-95% when you walk out the door
•You can convert your week to StarPOINTS (hotel points) - a poor value most of the time - sometimes valuable for Europe or special airline deals.
•You can trade for other timeshares in the Starwood system
•You can make a reservation at your home resort
•You can trade for Starwood resorts, and other resorts with an exchange Co. (Interval Acct. is included in your SVN membership)
•You will pay a yearly SVN membership fee of approximately $130
•Counts towards Elite Status.

If you buy a mandatory resort - resale:
•You will pay less - but still a significant price (thousands of dollars for a high season week - much less in Florida)
•You can't convert your week to hotel points.
•You can trade for other timeshares in the Starwood system using Staroptions.
•You can make a reservation at your home resort
•You can trade for Starwood resorts, and other resorts with an exchange Co.
•You will pay a yearly SVN membership fee of approximately $130
•Does not count toward Elite status, but can be requalified.

If you buy a voluntary resort - resale:
•You can often get a week totally free
•You can't convert your week to hotel points
•You can't trade for other timeshares in the Starwood system
•You can make a reservation at your home resort
•You can trade for Starwood resorts, and other resorts with an exchange Co.
•You will not pay a yearly SVN membership fee
•Does not count toward Elite status, but can be requalified.

 

[Moparman42]

I was aware of most of that, the real issue I have is with the ROFS, I don't want to get our hopes up and put money out there to have it held until we find out we didn't get it. So, most of the resale ads for Starwood Hawaii are not going to close, is what I am taking from this. I figured this info could also help others having the same dilemma. I am just glad I didn't go ahead and try to purchase one of the dirt cheap WKORV ones without asking this question.

thank you for your response and the info, Denise. I know if it was really easy and cheap everyone would do it! Still a proud nanea owner and just trying to add more for the least amount of money. just like everyone else!

I will probably hold out for WKORV resale or try to get them to bring that Nanea price down a bit.

THANK YOU !!!

 

[tschwa2]

I think many do close. The cheaper ones for sale ($6-8) are usually Island view and or EOY. If you are looking for Ocean front or Ocean view, I would expect to pay more.

 

[md8287]

Sayed is (IMO) the best guide for you. I won two ebay auctions (1 Princeville and 1 WKORV) and both were bought by the developer through ROFR. When I told Sayed he helped me set an offer that he believed the seller would accept and the developer would let go. He was right on the money and only required a deposit until it passed ROFR.

 

[Smithsingeneva]

I used Syed as well in 2013 to purchase my WKORVN Oceanview annual resale. I did not (and would not) pay the purchase price until the ROFR has been waived.

You should not let ROFR dissuade you. If they exercise it on one deal, there is plenty of Westin Kaanapali resale inventory available to line up another deal. Syed has several on his website last I checked. Vistana does not exercise the right on all potential purchases.

 

[Smithsingeneva]

There are also ways to structure the deal to reduce the likelihood of Vistana exercising its right. For example, your seller may not have used the VOI for 2018 yet. You could reimburse their 2018 MF and that use would transfer to you. We did this and banked the StarOptions. If Vistana exercised the ROFR, they would have had to reimburse the seller those MFs.

I would not recommend falsifying anything, but that is a valid structure that they would have to match.

 

[rickandcindy23]

Resale value matters. Don't buy anything with voluntary SO's. It's just not a wise move.

 

[md8287]

Resale value matters. Don't buy anything with voluntary SO's. It's just not a wise move.

Unless you want the voluntary resort and want to pay less upfront. If you pay close to ROFR price there is a good chance when you sell later you will get value of purchase back.

 

[carpie99]

I used Syed as well in 2013 to purchase my WKORVN Oceanview annual resale. I did not (and would not) pay the purchase price until the ROFR has been waived.

You should not let ROFR dissuade you. If they exercise it on one deal, there is plenty of Westin Kaanapali resale inventory available to line up another deal. Syed has several on his website last I checked. Vistana does not exercise the right on all potential purchases.

What is Syed's website?

 

[vacationtime1]

What is Syed's website?

https://advantagevacation.com