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Resale values/Trust point purchases

suenmike32

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I am a “weeks owner” of 3 OS platinum 2br units at OP. I purchased all of them re-sale, (thanks to TUG). I bit the bullet, paid the additional $1995.00 to enroll them in the DC (as well as one other unit elsewhere).
QUESTION:
If we sold (all 3) in a lump, what would the new owner’s rights be? If any?
Would the units still be enrolled in the DC, would the new owners enjoy any of the DC advantages (after paying their yearly fee of course).

I am really not interested in selling at this point, however, I’m trying to get a handle on why the resale value is so low. I have no interest in buying “Trust points”, yet when I do the math and figure out how many “Trust points” would be needed for a new “Trust point owner” to reserve 3 consecutive guest suites, then 3 consecutive 1 bedrooms during platinum season, including Presidents week (like we do). At the rate of $10.40 per point, they would need to own 16,650 points at the cost of $173,160.

Am I figuring something wrong here? I would think that “week owned units” (at less than a third of what the new Trust Point program costs), would surely hold their value.
Any thoughts?
Mike
 

TheTimeTraveler

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I am a “weeks owner” of 3 OS platinum 2br units at OP. I purchased all of them re-sale, (thanks to TUG). I bit the bullet, paid the additional $1995.00 to enroll them in the DC (as well as one other unit elsewhere).
QUESTION:
If we sold (all 3) in a lump, what would the new owner’s rights be? If any?
Would the units still be enrolled in the DC, would the new owners enjoy any of the DC advantages (after paying their yearly fee of course).

I am really not interested in selling at this point, however, I’m trying to get a handle on why the resale value is so low. I have no interest in buying “Trust points”, yet when I do the math and figure out how many “Trust points” would be needed for a new “Trust point owner” to reserve 3 consecutive guest suites, then 3 consecutive 1 bedrooms during platinum season, including Presidents week (like we do). At the rate of $10.40 per point, they would need to own 16,650 points at the cost of $173,160.

Am I figuring something wrong here? I would think that “week owned units” (at less than a third of what the new Trust Point program costs), would surely hold their value.
Any thoughts?
Mike




At this point in time, any week or weeks sold after 6/20/2010 are not eligible to be enrolled (or in your case re-enrolled) if it is a private resale.

From what I have read, resale weeks sold thru Marriott are eligible to be enrolled "if" you purchase a minimum of 2,000 Destination Club Points.



.
 

SueDonJ

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TimeTraveler is right - if you sell your Weeks on the external market, your enrollment will not transfer to the new owners, and they will not be able to enroll the Weeks because external resales purchased after 6/20/10 are not eligible for enrollment. If you sell your Weeks through Marriott Resales Operations, the Weeks will be eligible for enrollment only if the buyers also purchase DC Points at the same time.

Weeks have been losing resale value for years - it's just a fact of timeshares. During the last few years the devaluation has occurred at a rapid pace but I think that's more a result of the overall poor economy combined with the mainstream use of the internet, than it is a result of the DC inception. It's so easy for folks to just jump on the computer and find a robust external resale market, and some people are desperate to get out from under timeshare-related costs.

As Weeks owners it's fairly easy for us to see that the usage value of Weeks can go a lot further than DC Points. But I understand why Marriott started looking at developing a flexible Points product (which happened years ago if TUG posts about it are a reliable barometer) when the landscape started changing. I'm happy now that as Weeks owners we can still use what we own in the same ways as when we purchased, but we also have the option to play around in DC Points if we want. It's sort of a best-of-both-worlds situation.

Who knows if the Weeks values will go up at all if/when the economy improves. Some folks are optimistic, some are definitely NOT. I have no idea but will just keep reading TUG to make sure we get the best usage value we can no matter which way the tide turns.
 

dioxide45

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Weeks have been losing resale value for years - it's just a fact of timeshares. During the last few years the devaluation has occurred at a rapid pace but I think that's more a result of the overall poor economy combined with the mainstream use of the internet, than it is a result of the DC inception. It's so easy for folks to just jump on the computer and find a robust external resale market, and some people are desperate to get out from under timeshare-related costs.

I would expect the more mainstream use of the internet to drive resale prices up. It brings more potential buyers to the market. Though perhaps it brings more sellers to the market also.

I do however agree that the overall poor economy has driven resale prices down more than just the introduction of DC. Though, I wouldn't say that DC has had no impact on resale prices. I think there is some, it is just tough to measure with the market we are currently in. Had Marriott introduced DC during the boom/stable years, we would have been more easily able to guage it's impact on resale prices. Now it is just all speculation.
 

SueDonJ

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I would expect the more mainstream use of the internet to drive resale prices up. It brings more potential buyers to the market. Though perhaps it brings more sellers to the market also.

I do however agree that the overall poor economy has driven resale prices down more than just the introduction of DC. Though, I wouldn't say that DC has had no impact on resale prices. I think there is some, it is just tough to measure with the market we are currently in. Had Marriott introduced DC during the boom/stable years, we would have been more easily able to guage it's impact on resale prices. Now it is just all speculation.

So much of timeshare pricing is perception. We all pretty much agree that there is still a great deal of usage value in Weeks, so it wouldn't matter too much to us if we weren't allowed to play in Points with our Weeks. Or maybe it's better to say that we don't all see value in playing with Points, and some are just as happy not dealing with the DC at all. But regardless of what we think, the perception is out there that current Weeks purchases are devalued by not being eligible for DC enrollment so naturally that must have some impact on resale prices, just as you say.
 

Quilter

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Mike,

I've also wondered about the distance between resale prices and the cost to get into the new system. My sales advisor knows I won't be buying more so he doesn't have to hype things up with me. Yet he says the DC program is going very well. He's been with Marriott for years and his dad was with them before him. He has recently moved over into the resale division and I have to believe this move is because he thinks it will do well.

All this is to say that MVCI is still finding a market for buyers and their prices are much, much higher than resale. It would appear that if sellers of resale weeks didn't keep undercutting each other the values could stop falling and start rising to find a reasonable middle ground.

The economy made some sales come on the market at rock bottom. Marriott wasn't in the game to take over with ROFR. To me, the current low trend in resales has evolved from sellers' undercutting each other so much it has taken on the momentum of a downward spiral.
 

m61376

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Mike,

I've also wondered about the distance between resale prices and the cost to get into the new system. My sales advisor knows I won't be buying more so he doesn't have to hype things up with me. Yet he says the DC program is going very well. He's been with Marriott for years and his dad was with them before him. He has recently moved over into the resale division and I have to believe this move is because he thinks it will do well.

All this is to say that MVCI is still finding a market for buyers and their prices are much, much higher than resale. It would appear that if sellers of resale weeks didn't keep undercutting each other the values could stop falling and start rising to find a reasonable middle ground.

The economy made some sales come on the market at rock bottom. Marriott wasn't in the game to take over with ROFR. To me, the current low trend in resales has evolved from sellers' undercutting each other so much it has taken on the momentum of a downward spiral.

I think that's so true. I also think that once the economy really rebounds there will be less desperation from owners needing to just get rid of their weeks at any cost to avoid the MF's and that will hopefully reverse the trend. Time will tell....
 
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