Resale of Enrolled Week Not Eligible for Points Program - Discussion

[5infam]

Beneficial Intrests are the actual points, in blocks of 250. Each 250 point block is 1 beneficial interest.

So here is a question...Will Marriott be willing to sell my Maui week that I purchased on the resale market? If so, what is the fee and how much do they sell them for since they only sell points now?

 

[5infam]

My week trades in for points of 3,100. So here is the math:

3100 X $9.20 = $28,520

Less 40% commission, which is what I think the going rate is - $11,408

So they sell for $28,520 less $11,408 nets me $17,112. That is more than $4,000 profit based on what I purchased my week for on the resale market. That is a nice profit considering usage etc. Sign me up!!!

Am I missing something in the math here???

 

[hipslo]

My week trades in for points of 3,100. So here is the math:

3100 X $9.20 = $28,520

Less 40% commission, which is what I think the going rate is - $11,408

So they sell for $28,520 less $11,408 nets me $17,112. That is more than $4,000 profit based on what I purchased my week for on the resale market. That is a nice profit considering usage etc. Sign me up!!!

Am I missing something in the math here???

marriott has more or less unlimited points inventory of its own to sell. how long do you think it will take them to sell your ownership interest for you?

 

[JimIg23]

Would Marriott sell the week as a week (transfer deeds) or convert to points and sell the points?

 

[5infam]

marriott has more or less unlimited points inventory of its own to sell. how long do you think it will take them to sell your ownership interest for you?

I hear you, and was sort of kidding - although if the numbers I outlined were real, I would jump at selling and getting out. If I sell on the resale market today, I would take a loss, so this seemed hopeful, although not realistic.

You never know though, they may want some of my Maui inventory???

 

[hotcoffee]

Would Marriott sell the week as a week (transfer deeds) or convert to points and sell the points?

They can't sell it as points because the number of points they sell must be less than or equal to the number of use-points in the inventory. So, to sell it as points they would first have to add it to their inventory. That would in effect be equivalent to buying it themselves from you.

 

[5infam]

Would Marriott sell the week as a week (transfer deeds) or convert to points and sell the points?

At first I assumed it would be a points sale, but why sell it if it fills point requests for the shiny new owners? Although they would probably wait for me to sell at a big loss, then ROFR me instead! There goes my profit!!

 

[hotcoffee]

marriott has more or less unlimited points inventory of its own to sell. how long do you think it will take them to sell your ownership interest for you?

According to the documentation I have, Marriott can only sell as many points as their inventory permits. So, if you do the conversions of all of their inventory into points, that is the maximum amount of points they can sell. So, I do not see any relationship between what they have in their inventory and whether they sell a MOC week or not. If they decide that your MOC week is valuable enough to them, they could in theory buy it from you themselves and add it to their inventory. Most likely, though, they will simply put it up for sale on your behalf. The real questions are: how much would they try to sell it for? Who would set the price?

 

[pipet]

another interesting thought about resale market

Reading this makes the aftermarket seem like you could get stuck using points only in the open reservation time (60 days or less) unless you buy overpriced points from Marriott:

In addition, Exchange Company has the right to restrict use of any Base Plus Exchange Benefits and Special Benefits offered by Exchange Company to certain Members, including, without limitation, only to those Members who (i) purchase an Interest from or through an “Approved Broker" .... If a Member does not purchase the Member’s Interest from an Approved Broker, such Member may be limited to only Base Exchange Benefits, or upon payment of the initiation fee, if permitted in Exchange Company’s sole and absolute discretion, Base Plus Exchange Benefits

But then, there is this:

Each New Member will be required to remit to the Association an initiation fee; provided, however, an initiation fee shall not be required to be paid by an existing Member.

From the way I read this, if I convert now and become an existing member, I could buy trust points in the after market and NOT pay the initiation fee. ???

Of course, who knows what the Trust (as opposed to deeded) after market is going to be like, but the price Marriott is putting on their points seems like quite an increase over their developer prices for deeded weeks. While Marriott can now let people buy smaller pieces of the pie (which I see value in), they are really charging a lot for that teeny piece. I'm sure people will have buyer's remorse just as they do with deeded weeks.

For people who do buy into the points program (I'm still not sure yet what I am going to do), buying aftermarket points might be a way to supplement what you have if it means you can escape a horrible initiation fee later. I am just not sure I am interpreting it correctly.

 

[hipslo]

According to the documentation I have, Marriott can only sell as many points as their inventory permits. So, if you do the conversions of all of their inventory into points, that is the maximum amount of points they can sell. So, I do not see any relationship between what they have in their inventory and whether they sell a MOC week or not. If they decide that your MOC week is valuable enough to them, they could in theory buy it from you themselves and add it to their inventory. Most likely, though, they will simply put it up for sale on your behalf. The real questions are: how much would they try to sell it for? Who would set the price?

There is so much unsold inventory that marriott can sell points out of their own inventory for years and years. What difference does it make what resort the inventory comes from? The price for points, and the mf charged per point, is the same whether the points relate to fairway villas or to maui ocean club. Given that, why would marriott be interested in buying back any inventory, when they already have years, perhaps decades, worth of points inventory to sell already?

The only difference is the impact on the inventory out of which marriott can grant reservations to points owners. But there are much less expensive ways for marriott to access this inventory, such as exercising rofr, which would not be in direct competition with its own efforts to sell points.

 

[hotcoffee]

There is so much unsold inventory that marriott can sell points out of their own inventory for years and years. What difference does it make what resort the inventory comes from? The price for points, and the mf charged per point, is the same whether the points relate to fairway villas or to maui ocean club. Given that, why would marriott be interested in buying back any inventory, when they already have years, perhaps decades, worth of points inventory to sell already?

The only difference is the impact on the inventory out of which marriott can grant reservations to points owners. But there are much less expensive ways for marriott to access this inventory, such as exercising rofr, which would not be in direct competition with its own efforts to sell points.

I don't think their only consideration will be how many points they have to sell. I still think Marriott wants to have happy customers (even though it seems like posters here now think otherwise). For them to have happy customers, they need to make sure they can satisfy exchange requests. That is especially true now with the new program just rolling out. I certainly think that if they can get ahold of a cheap MOC (probably via ROFR), they are going to grab it (unless, of course, they are already overloaded with MOC weeks in their inventory).

 

[hipslo]

I don't think their only consideration will be how many points they have to sell. I still think Marriott wants to have happy customers (even though it seems like posters here now think otherwise). For them to have happy customers, they need to make sure they can satisfy exchange requests. That is especially true now with the new program just rolling out. I certainly think that if they can get ahold of a cheap MOC (probably via ROFR), they are going to grab it (unless, of course, they are already overloaded with MOC weeks in their inventory).

Perhaps, but that is very different than selling an owner's enrolled week for full freight in some sort of a resale program. Those rofr prices for weeks could drop pretty low if the resale buyer is not eligible to participate in the points program.

 

[DanCali]

You are spending a lot of time trying to prove an irrelevant point. What is relevant are the real decisions that current owners have now. To enroll or not. To purchase points or not.

To me, knowing the answer to this question is part of the decision process. Therefore it is very relevant. In fact, it's probably second on my list of questions after the inventory allocation.

The way I see it, IF the did allow resold enrolled weeks to reenroll, thse weeks will be more valuable on the resal market. If a plain week at a resort is worth $X, then an enrolled week from that resort might be worth X+$3K (just as an example) because it can join points when resold. This is especially true if the points program is as great as they pitch it to be and there is value to the option of reenrolling the week. So if I pay $2K to enroll my week but it's now worth $3K more on the resale market, then I can recoup the enrollment fee down the road. But if resold enrolled weeks cannot go back into points, as seems to be the case, then I'm just flushing $2K down the toilet and hoping the points program will work for me. Personally, it'd make te decision to enroll much easier if I knew a future buyer could reenroll.

No matter what you read into the current documentation and no matter what our current understanding is. Marriott WILL make it possible for resale weeks to enroll into points in some way. It will either be by a strict enrollment program, a trade in program or an authorized reseller program. I would be willing place a bet on it.

That is not a gamble I'm willing to take. They are prohibiting reenrolling a resold enrolled week - I'll make my decision to enroll based on that info.

If later on they say a resold week can reenroll only if Marriott sells it, that won't help me much because it'd probably take them a few years to sell my week at their prices... And if I ever decide to sell I'd want it done in a matter of weeks or a couple of months, not years.

I can only make a decision base on the information given at a point in time.

 

[DanCali]

1. A resale week sold via Marriott will be able to be enrolled into the program.
2. As several posters here concluded, "Trust member" is someone who owns only points.
3. "Exchange member" is someone with an enrolled deeded week.
4. Marriott will not allow resales obtained through an external broker to be enrolled into the points program.
5. When Marriott sells an enrolled member's week, they will not sell the week bundled with any extra points owned by the member. Points will be bought back by Marriott, and the week will be sold without the points.

Thanks for confirming this info.

So it sounds like for all intents and purposes an enrolled week cannot be reenrolled, unless they buyer pays full freight price, which is not a realistic assumption and may require you to wait for years until you sell your week. Buying/selling on eBay and RedWeek will not get the new buyer into points.

The statements that they will have a resale department selling weeks are somewhat inconsistent with what they've been saying about selling points only from now on. If this is true, I guess if someone wanted to buy a week at full price, they can - but I don't see Marriott even raising this option to prospective buyers because Marriott wants to sell points. My guess is that even if they have a resale department selling weeks, buyers will not be told about it unless they specifically ask for it. I know I called telesales and told them I wanted to buy a Platinum Plus week 26 at NCV and was turned away under the excuse: "points only"

 

[pcgirl54]

Cost of the program

I was told by a Marriott Rep that my Gold resale week(no pts) bought non Marriott broker can be enrolled for $1495 although I have seen $1995 posted elsewhere. My resale fixed week Marriott bought through Marriott can be enrolled for $595. I have this second week for sale as my vacation style has changed this year and only need 1 week rather than 3.

I don't have enough info to make a decision about the worth of my enrolling based on how I plan to use my week that has no pts attached to it now.

Are these one time enroll fees?

I plan to use my Marriott resale bought outside Marriott to stay at my resort on HH and do not right now expect to trade it. I never trusted points values that can change at the VC discretion which is why I never converted my Brewster Green week to points thru VRI.

However if there are options for Italy DC at some point in time I may want to trade. Splitting it for shorter stays maybe the only thing I would consider except I live too far to drive so this means two airfares unless they build something in DC near where my son lives.

The rep also said that owners are getting letters in stages and I have not received anything yet. You have to call to find out how many pts your week is worth because the web link does not work. I have been to the web link.

 

[KathyPet]

Well I wish someone would give me some good news about this resale week issue because after speaking with a customer service rep and the customer advocacy group I have been told that my St. Kitts resale week which I bought on Red Week from the owner is not eligible for enrollment. I have been in escrow on this sale since early Feb. and we signed and returned the documents and sent the check to the closing company on June 21. The deed recordation process could take another two-three months according to the closing company. Everything works so slowly in St. Kitts. THe closing company told me that the attorney now must get on the court calender and actually bring the documents and go in front of a judge to get the deed changed to our name. Total time from start to finish could be 8 months. I wonder if I hold the record for the longest time in escrow??
Anyway the seller owns other Marriott weeks and has enrolled all of them including St. Kitts in the points program but because Marriott drew a artificial line in the sand of 6/20 for the ownership of resale weeks to be enrolled I cannot enroll that week when Marriott is notified of the sale.
I am angry that Marriott is taking such a hard line on this. They could have said that if you were currently in escrow on a resale week as of 6/20 that when that week finally closed it would be eligible for enrollment in the points program. That would have allowed purchasers who were in the middle of a sale to complete the sale and be have the week be eligible but they did not do that. Very customer unfriendly and I will not enroll my two Marriott purchased weeks because of this issue.

 

[Dean]

I understand the current ruling is that resale weeks closed after the cutoff date and weeks not converted will not be eligible for conversion to points later. I can almost guarantee you this will not be the last word but it's likely the option won't be pretty. I would be willing to bet that some who bought later will have the options but likely for a much higher price or for a minimum purchase of additional points, likely at 1500 or more.

 

[DanCali]

deleted....