Purchasing on eBay

[pamanc]

Should I have any concerns with the following on eBay.....

1 bdr OV every other year at Kaanapali Beach Club being sold through
"Donate for a Cause" on eBay. Charity pays all closing costs.
Resorts Closing Inc handling the closing.

eBay seller is listed as snownsun4ever

 

[DeniseM]

Please be more specific - what are your concerns?

 

[pamanc]

Please be more specific - what are your concerns?

I guess because I am so new to this I am wondering about purchasing on eBay. Just wondering if anyone has any past experience with TS deals on eBay, especially regarding the names/companies I posted. Would they really pay all closing costs if the bid is won for a few dollars? I posted a question to the seller to inquire if there is a reserve.....

I have used eBay for many years, but not for something as important as a TS purchase.

Thanks for the guidance on how to post questions...... Sometimes I can be too brief.

 

[Rent_Share]

The reason this is for sale on eBay under the terms listed is the previous owner has PAID donate for a cause to get this ownership out of his/here name since the annual maintenance fees and Maui county taxes are too high.

There is the additional issue of having to purchase airfare to use, the fees and taxes make Hawaii timeshares inefficient as traders

One click of the the mouse and some notarized documents and you can find your same position as the original "donor".

Hawaii resorts have the highest maintenance fees and taxes.

There are not many fans of Diamond Resorts in here

With the general state of the economy and the timeshare market, you will be able to duplicate a similar deal (or better value) with patience in the short to medium term.

You need to take the time to hang out here, read and understand what you are buying before committing to a contract to pay maintenance fees and property taxes

 

[ronparise]

snownsun4ever offers some of the best timeshare "deals" on ebay. as they often cover all the closing costs and costs of transfer. To understand how thats possible you have to understand how they come to control these timeshares in the first place. Rent_Share has given you the basics in their post

But if you watch enough ebay sales you may come to the conclusion that it dosent make any difference whether closing costs are included or not. For two identical items the one where closings costs are included will be bid higher than the one where closing costs are the buyers responsibility.

As I said, snownsun4ever offers some of the best "deals" on ebay, but remember you are not buying a deal...You are making a deal, you are buying a timeshare. The deal will be done today, the timeshare will last forever...make sure this is the timeshare you want and that the ongoing fees are something you are willing to pay. Sometimes its better to pay a little more today to get just the right property.

 

[vacationhopeful]

pamanc,

Welcome to TUG!

Many of us own multiple timeshares - looks like you are considering a 2nd one? But these are expensive to own IF you plan to use them sometimes.
Be certain that YOU can and WILL use them yearly; this is WHERE and WHEN you want to go YEARLY; and you can AFFORD increasing yearly MAINTENANCE FEES.

While we all use the term "our timeshare portfolio", these are NOT appreciating assets. But we do "balance" what we own to maximize our vacation plans. I traded last May 2011 into Kauai for 2 back to back weeks in April 2012 - for way less than MFs are in Hawaii. I choose NOT to buy because I may go to Hawaii only a few more times in my lifetime... Last trip was March, 1992. But I do go to other locations closer to me; some for only long weekends (hence, I have 2 points systems to use).

Please hang around, read and learn. It is a great way to vacation.

 

[Ron98GT]

Looks like the OP already owns a week at KBC (Ka'anapali Beach Club) and just wants to add another week.

I think that poster "ronparise" sums up the answer to his question along with the following by "Rent_Share": "The reason this is for sale on eBay under the terms listed is the previous owner has PAID donate for a cause to get this ownership out of his/here name since the annual maintenance fees and Maui county taxes are too high."

 

[DeniseM]

Purchasing a timeshare on eBay is not like buying other merchandise on eBay:

1. TS auctions are not binding - if you find that what you bought is not as promised, you can walk away with no obligation.

2. You do not pay in-full when the auction closes.

3. You use a timeshare closing company to handle the documents and $$$.

However, to be successful on eBay, you need to have a solid understanding of what you are buying and the purchase process.

I strongly suggest that you do a lot more research before you buy. I'd start on the TUG Advice Page (linked in the red bar at the top of the page.) There are many articles there about buying resale.

 

[mike53]

If you are comfortable with what you are purchasing, you should have no issues with the transaction. We have completed several purchases this year on ebay without problems. Timeshare Closings was involved in three of the purchases and did well.

 

[pamanc]

You all are awesome to respond. You are right, I need to hang around and decide if I really want to commit to additional MF. Already pay for a 2 bdr EY and 1 bdr EOY. Maybe need to consider something closer to home and more affordable MF.

Thanks so much, I will keep checking back and keep looking at threads and posts.....

 

[Jennie]

You have an alternative option to consider. Many owners try to rent out their week in a year when they prefer not to use it e.g. due to health issues, financial constraints, employment demands, etc.. Often times they advertise it at or below their maintenance fee costs.

There are many rental ads here on TUG in the "Marketplace" section. Two other popular websites with rental ads are: www.redweek.com and www.myresortnetwork.com. You can also call the timeshare office of a resort and ask if they have a list of owners who have listed their week for rent.

The only time I would recommend buying a timeshare is if it is a prime time week that you anticipate using every year, and could realistically rent for at least the cost of maintenance fees if you choose not to use it in a given year. Several TUG members (myself included) who live in areas where the winter weather is harsh own multiple back-to-back weeks at a Ft. Lauderdale or Pompano Beach, Florida resort where we vacation from January through March each year ("snowbird escape").

Glad you found your way to TUG. There is an awesome amount of knowledge being shared here.

 

[cbexpose]

Did you purchase title insurance on your deals with this company or do they do their due diligence? I just purchased a donated property and am about to pay, but was wondering about purchasing title insurance.

 

[theo]

Probably neither available nor necessary...

Did you purchase title insurance on your deals with this company or do they do their due diligence? I just purchased a donated property and am about to pay, but was wondering about purchasing title insurance.

Depending on the closing entity (i.e., not determined by the actual seller), purchase of title insurance may very well not even be an option which is readily available to you at all. This is particularly true of most of the "closing entities" associated with eBay mega-sellers.

Imho, for low cost resales, the (possibly several hundred dollars) cost of title insurance (even if it's an available option) is neither necessary nor financially prudent. YMMV.

 

[DeniseM]

Title Insurance will only reimburse your cost - for a cheap free timeshare, the title insurance may be more than what you pay for the timeshare.

So if you pay $350 for title insurance, for a timeshare you paid $1 for - you get $1 back.

Your best protection is to get an estoppel letter, and do your own due diligence.

 

[esk444]

Title Insurance will only reimburse your cost - for a cheap free timeshare, the title insurance may be more than what you pay for the timeshare.

So if you pay $350 for title insurance, for a timeshare you paid $1 for - you get $1 back.

Your best protection is to get an estoppel letter, and do your own due diligence.

Title insurance doesn't quite work like that. You aren't limited to your purchase price. The insurer will pay to defend a title challenge and pay to settle a claim if you lose. Those costs can greatly exceed the initial purchase price.

That said, it still isn't worth buying title insurance for a timeshare in most circumstances unless it is a very expensive one.

To the OP, just search older Tug posts and you'll see plenty of us have bought super cheap timeshares via Ebay without issues. There are a few bad applies, but I don't think Donate for a Cause is one of them. The main issue you'll have is you must use their captive closing companies and escrow agents who are affiliated with the seller, so you don't have as much protection compared to if you use an independent closing company, and they make a ton of mistakes that are very difficult and time consuming to correct.

Just make sure you double check and triple check everything every step of the way.

 

[Jennie]

If you are able to obtain the name(s) of the prior owner of the week you are purchasing, you could call the resort and see if they will verify the name and the status of the unit. This is easier to do if it is a deeded week (vs. "floating" or Points). In many jurisdictions you will also be able to access court records via the internet and see what the recorded deed for the property shows. This would usually be worth the effort only if the week you are purchasing is very expensive, or you are obtaining it from an individual without using a closing company or licensed real estate agent.

That said, so long as you are dealing with an Ebay seller with an excellent feedback rating, it shouldn't be necessary to do any of the above. PAY WITH A CREDIT CARD. If anything goes wrong, you have 90 days to dispute the transaction and hopefully obtain a refund.

 

[AwayWeGo]

Free Title Insurance -- And That's About What It's Worth.

Depending on the closing entity (i.e., not determined by the actual seller), purchase of title insurance may very well not even be an option which is readily available to you at all. This is particularly true of most of the "closing entities" associated with eBay mega-sellers.

Imho, for low cost resales, the (possibly several hundred dollars) cost of title insurance (even if it's an available option) is neither necessary nor financially prudent. YMMV.

To our surprise, title insurance (which we did not want or ask for or pay for) apparently was included as part of the deal with our most recent eBay timeshare purchase from 1 of those mega-sellers.

The premium could not have been much or the policy would not have been thrown in. And it can't be worth much, because the eBay purchase price was right under $105 & there are significant exclusions (e.g., any liens recorded against the title after the eBay sale date & before recording the new deed).

I suppose title insurance could be regarded as some kind of red flag on this deal. That is, if the title is not clear, the eBay seller can simply shrug & say We Gave You Free Title Insurance So That's Not Our Problem.

We'll see, eh ?

Update: Copy of recorded deed has been sent to the resort. Chief Of Staff called the resort's owner services number to if any fees were owing on our newly acquired resale unit. Response from owner services person is that nothing is owed -- our deed is free & clear & we are good to go.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​