RII Stroman's Big Auction - Or Just another Scam?

[jschmidt]

I emailed RII Stroman last week to obtain some additional information about a timeshare they have advertised on there web site. Then this week I received the following email from RII Stroman:

“Big Auction is scheduled! If you would like to participate, let me know.

Thanks

Maxine Wilson, Realtor
Timeshare Specialist
RII Stroman Inc”

I contacted Ms. Wilson and was told the Big Auction would last for two weeks and I could view the properties at www.timesharelink.com. I check the web site out and there was no indication that an auction was happening, so I called her back.

She told me the auction rules were not like ebay. The RII Stroman Auction Rules are:

1. Tell your agent what property you want to bid on.
2. What your maximum bid is.
3. The agent will bid for you. (Ya, right the seller’s agent bidding for me!)
4. No bids will be posted on RII Stroman’s web site.
5. Only the agents will see the bids.
6. If you are out bid, the agent will call to see if you want to raise my bid.

At this point the thought crossed my mind that I might be bidding against myself. So I gave her a low-ball bid and was informed that she would not present such a low offer to the seller. I tried to explain that I was making an auction bid and not an offer. That’s when she hung-up.

My questions are:

1. Has anyone else been invited to participate in the Big Auction? It’s purportedly happening right now.
2. Is this just another scam tactic?
3. Should I have hung-up first?
4. Is it true that timeshare deals are like elevators? i.e., there will be another one along shortly.

 

[Spence]

1. Has anyone else been invited to participate in the Big Auction? It’s purportedly happening right now.
You have!
2. Is this just another scam tactic?
Yes.
3. Should I have hung-up first?
Probably.
4. Is it true that timeshare deals are like elevators? i.e., there will be another one along shortly.
Definitely.

Thanks for posting. You've reaffirmed my feelings about RII Stroman

 

[Spence]

Don't know how much you've read in your short time on the BBS, but Stroman is an 'upfront fee company' and gets big money to list your TS for rental or sale then don't do that much to sell it. As a buyer you can do OK when the seller realizes they can't really get what RII Stroman let them believe.

Ask for Kelly Curtner, she's no-nonsense, tell her Spence sent you.

 

[eal]

just another scam

 

[bogey21]

"Scam" is a little harsh IMO. All they are doing is trying to get you to make a bid on one of the Weeks in their inventory. If your bid is accepted you buy the Week. No big deal. If you are looking for a particular week in a particular resort, Stroman is not a bad place to go. If they have it, figure out what you are willing to pay, subtract their closing costs, divide by two and make your bid. You may be pleasantly surprised. Why divide by two? So you can accept a counter offer if there is one. If your bid is accepted, you just bought a Week for less than you were willing to pay.

GEORGE

 

[qlaval]

It's not a scam in the way that they will disapear with your money...

It's a scam in the way that they use the false advertisment.
There is NO auction!

They are just looking for offers to submit to the sellers.

 

[jschmidt]

Bogey21 you’re right Scam is harsh.

I was questioning the auction approach. I should have titled the post “Another New Sales Tactic?”

Here are some more thoughts:

The timeshare resale market, which is an offer/counter-offer system, presents one buyer at a time. In the current timeshare "buyers market", buyers are few and far between and eventually the buyer will set the price.

The auction system is a one-time-chance event which creates a sense of urgency and is a form of competition. All created because there are others trying to buy the same item. In this system the competition sets the price.

In a way an auction closely parallels the sales tactics used by resort developers in that they try to create a sense of urgency and a buy-it-now mentality. A resort environment offers many buyers to the developer and a new crop of buyers will show up every week. In this system the seller sets the price.

So if you’re the only bidder at RII Stroman's Big Auction, don’t get carried away and out bid yourself!

 

[jschmidt]

The timeshare resale market, which is an offer/counter-offer system, presents one buyer at a time. In the current timeshare "buyers market", buyers are few and far between and eventually the buyer will set the price.

The auction system is a one-time-chance event which creates a sense of urgency and is a form of competition. All created because there are others trying to buy the same item. In this system the competition sets the price.

I reread my post and realized that I didn't state my point. My point is that by agreeing to enter into the auction, you have entered into a competition. This means, you have lost your advantage of being in control as a buyer in a buyers market.

Any thoughts on this?

 

[jalexander]

When I called and asked about one of these some time ago, I was told it is no different than what they always do - that there wasn't an auction - just make an offer on any property

The email is misleading

 

[Harry]

Isn't this the same ERA Stroman out of Texas?

This company has been around for years and has been the subject of considerable discussion here. It is amazing they are still in business.

 

[bogey21]

It is amazing they are still in business.

Here is my take on Stroman. As a purchaser I have made a couple of very nice buys from Stroman notwithstanding having to close through Rice, Rice & Rice. Both transactions were exactly what I wanted, at a bottom level price and went smoothly.

As an unknowledgeable seller, IMO a case can be made that selling through Stoman with an almost nonexistant net return is a better alternative than dealing with the Post Card companies (which may be the only alternative many people see). Al least the unsavy owner who wants out puts a dollar or two in his pocket versus paying one of the Post Card Companies almost $3,000.

GEORGE

 

[geekette]

I reread my post and realized that I didn't state my point. My point is that by agreeing to enter into the auction, you have entered into a competition. This means, you have lost your advantage of being in control as a buyer in a buyers market.

Any thoughts on this?

Nah, I don't think so.

You want the property, you make an offer. No one's holding a gun to your head. I don't know if the offers are binding, which would be something to check into before ever making a bid.

No control to lose, unless you accidentally freak out and tell them your actual top dollar bid on the thing :ignore: oops, that would be bad.

If they won't take a low ball offer, negotiate up towards what you would pay or move on to another seller.

"Control" isn't something I worry about too much, but I don't see the loss of it here?