sample letter about postcard co.

[Bill4728]

Has anyone written a letter to their resort yet?

What did you write?

I was thinking of something like:

MY name
My address.

VP sales
{Resort name}

Dear Sir

I am a happy owner at {resort}. Although I’m a happy owner, I have become aware that some owners at the resort with desire to sell their interest in the resort have become a victim of what I believe is a just short of a scam.

There are several companies which send postcard to owners and put on hotel seminars for the purpose of having owners sell the timeshare to these “postcard companies”. At these seminars, the timeshare owner is told of how bad timeshare are and how it is impossible to sell. How years of maintenance fees will never stop. To make matters worse they were told that they could decuct the sum of what they paid for their Week + the disposition fee on Schedule D of their Federal Income Tax Return if they said that they purchased the Week for "Investment Purposes". The company then offers to take the TS from them for a fee of between $3,000 - $4,000. YES, the timeshare owner is paying these postcard companies to take the timeshare.

The postcard company then offers it to the resort or sells the timeshare on Ebay. This is why the resale prices on the units of your resorts are falling. These companies are flooding the market with super cheap timeshares. They already made their money on by convincing the owner to pay them to take the timeshare from them.

I hope that you maybe able to help these owners and others like them avoid becoming victims of these companies. Could a notice be put into our newsletters which ask anyone interest in selling to first contact the resort about these scammers. Maybe you as the timeshare developer would be interested in picking up these weeks?

But it is very bad for the timeshare industry and you as a timeshare developer to have companies bad talking timeshare and having people paying >$3000 to get rid of their timeshare.

Sincerely

If there are people here with writing skills who could polish this letter, that would be great!

 

[KenK]

Bill:

I'm not a good communicator, and think the letter is done pretty well.

I might change a few of the words to make the reader feel its an US thing ie ..an owner and HOA problem.

"...
MY name
My address.

VP sales and/or HOA COA whatever
{Resort name}

Dear Sir

I am a happy owner at {resort}. Although I’m a happy owner, I have become aware that some owners at the{our ?} resort with desire to sell their interest in the resort have become a victim of what I believe is a just short of a scam.

There are several companies which send postcard to owners and put on hotel seminars for the purpose of having owners sell the timeshare to these “postcard companies”. At these seminars, the {our} timeshare owner is told of how bad {our} timeshares are and how it is impossible to sell. How years of maintenance fees will never stop. The company then offers to take their TS from them for a fee of between $3,000 - $4,000. YES, the timeshare owner is paying these postcard companies to take the timeshare.

The postcard company then offers it to the resort or sells the{our} timeshare on Ebay. This is why the resale prices on the units of your {our}resorts are falling. These companies are flooding the market with super cheap timeshares. They already made their money on by convincing the owner to pay them to take the timeshare from them.

I hope that you maybe able to help these {our} owners {?}and others like them{?} avoid becoming victims of these companies. Could a notice be put into our newsletters which ask anyone interest in selling to first contact the resort about these scammers. Maybe you as the timeshare developer would be interested in picking up these weeks?

But it is very bad for the timeshare industry and you as a timeshare {HOA or} developer to have companies bad talking timeshare and having people paying >$3000 to get rid of their timeshare.

Sincerely ..."

Just trying to make it more focused on the T/S and not the PO companies.

 

[ace2000]

I was kind of thinking about adding a couple of paragraphs along these lines...

"Even though I was able to take full advantage of buying these cheap timeshares at low prices, I hate to see anyone else getting the same type of deal in the future"

and further down add:

"And I would really like to see the cheap postcard timeshares go away completely and enhance the value of all of my current timeshares which I was able to buy very cheaply from those wicked postcard companies"

 

[Bill4728]

I was kind of thinking about adding a couple of paragraphs along these lines...

"Even though I was able to take full advantage of buying these cheap timeshares at low prices, I hate to see anyone else getting the same type of deal in the future"

and further down add:

"And I would really like to see the cheap postcard timeshares go away completely and enhance the value of all of my current timeshares which I was able to buy very cheaply from those wicked postcard companies"

If I was being completely honest, maybe I should add those lines. :hysterical:

But the main reason, I'd like to cut into the postcard companies business is I paid $1,500 for a TS which should have been worth at least $3,000. And the former owner paid >$3,000 to "sell" his TS instead of receiving $3000 for his TS. This poor man lost $6000 on the transaction.

 

[rickandcindy23]

I was kind of thinking about adding a couple of paragraphs along these lines...

"Even though I was able to take full advantage of buying these cheap timeshares at low prices, I hate to see anyone else getting the same type of deal in the future"

and further down add:

"And I would really like to see the cheap postcard timeshares go away completely and enhance the value of all of my current timeshares which I was able to buy very cheaply from those wicked postcard companies"

Someone paid that postcard company a lot of money to rid himself of that timeshare, so why is that okay? So someone gets ripped off in the process, and I don't want any old people getting ripped off.

I don't understand why you think we are going to put the postcard companies out of business, because there is no way that even 200 such letters would accomplish it. I am wanting us to see how many resorts will have the courage to send out such a letter.

 

[skinsfan]

If resorts were REALLY concerned with TS resale value or resales period, they would offer a good internal program or at least offer something other than a ROFR (which requires the owner to get a buyer in the first place). The resorts are putting more and more resale restrictions in an effort to make over paying at the resort more desirable. IMO the largest depreciation factor is on the RESORT more then the resale market. I am in NO WAY encouraging people to pay THOUSANDS of dollars to a company to "take the property off their hands" but people are willing to give the TS away BECAUSE of the negatives to being an owner (and lack of assistance from the resort in selling the unit). The resort is no better when it comes to deceiving its clients (like the "postcard companies"). They are just using the same tactics as the "postcard companies" but from a different perspective. The consumer is promised easy exchanges, affordable vacations and a return on their "investment". Most tuggers know that is far from the truth. I agree most resorts are beautiful, exchanges are possible and if you buy RESALE it can save you money on vacations. But I would never pin depreciation on JUST the "postcard companies". After all, the resale value of a timeshare is what the buyer is willing to pay and seller is willing to lose. So until the resorts offer a legit resale program and ease up on resale restrictions, nothing will change and ebay (and other free/cheap resale sites) will continue to offer dirt cheap properties!

Bill:

I'm not a good communicator, and think the letter is done pretty well.

I might change a few of the words to make the reader feel its an US thing ie ..an owner and HOA problem.

"...
MY name
My address.

VP sales and/or HOA COA whatever
{Resort name}

Dear Sir

I am a happy owner at {resort}. Although I’m a happy owner, I have become aware that some owners at the{our ?} resort with desire to sell their interest in the resort have become a victim of what I believe is a just short of a scam.

There are several companies which send postcard to owners and put on hotel seminars for the purpose of having owners sell the timeshare to these “postcard companies”. At these seminars, the {our} timeshare owner is told of how bad {our} timeshares are and how it is impossible to sell. How years of maintenance fees will never stop. The company then offers to take their TS from them for a fee of between $3,000 - $4,000. YES, the timeshare owner is paying these postcard companies to take the timeshare.

The postcard company then offers it to the resort or sells the{our} timeshare on Ebay. This is why the resale prices on the units of your {our}resorts are falling. These companies are flooding the market with super cheap timeshares. They already made their money on by convincing the owner to pay them to take the timeshare from them.

I hope that you maybe able to help these {our} owners {?}and others like them{?} avoid becoming victims of these companies. Could a notice be put into our newsletters which ask anyone interest in selling to first contact the resort about these scammers. Maybe you as the timeshare developer would be interested in picking up these weeks?

But it is very bad for the timeshare industry and you as a timeshare {HOA or} developer to have companies bad talking timeshare and having people paying >$3000 to get rid of their timeshare.

Sincerely ..."

Just trying to make it more focused on the T/S and not the PO companies.

 

[wbtimesharer]

If I was being completely honest, maybe I should add those lines. :hysterical:

But the main reason, I'd like to cut into the postcard companies business is I paid $1,500 for a TS which should have been worth at least $3,000. And the former owner paid >$3,000 to "sell" his TS instead of receiving $3000 for his TS. This poor man lost $6000 on the transaction.

Me thinks they lost a lot more than that. Considering they probably paid >10,000 for it as I assume that as they paid for a postcard company to take it that they bought from the developer. Not to mention the n number of years MF they paid where they probably never even used the week they owned otherwise they will still own it.

They are probably at home going "heheheheheh Sucker. Good luck selling that worthless peice of #@$@#"

Bill

 

[dioxide45]

I do commend you for wanting to help people from being ripped off by the postcard companies. Many people could do the same thing these companies do for much less cost.
I don't know how much substance there is behind the postcard companies depressing resale prices. If the original owners were to list them on EBay themselves they would probably fetch about the same price as the postcard companies. The E-Bay market is driven by supply and demand. While the postcard companies flood EBay with lots of weeks, these people would still be trying to sell elsewhere, still driving down costs.

 

[Jya-Ning]

I do commend you for wanting to help people from being ripped off by the postcard companies. Many people could do the same thing these companies do for much less cost.
I don't know how much substance there is behind the postcard companies depressing resale prices. If the original owners were to list them on EBay themselves they would probably fetch about the same price as the postcard companies. The E-Bay market is driven by supply and demand. While the postcard companies flood EBay with lots of weeks, these people would still be trying to sell elsewhere, still driving down costs.

Maybe, maybe not. I have put a simple tracking on the eBay completed lists for Fairfield (http://www.timeshareforums.com/foru...f-fsp-point-contract-ebay-complete-price.html). If you look at the recent activity in April 2007 and May 2007, you will notice there are quite a few buy it now auction at May time frame. And they are from the post card company.

If you look more, the buy it now price is usually not the highest or close to higher avg 50% they can get from the April bid.

When you say the people will still try to sell elsewhere, that could be true. They could still just put a low price to get rid of it. On the other hand, I don't know if 10 people want to sell at the same time, all will put a low buy it now with similar price range. You will see that because 2 or 3 goup of the same people try to kill other's market even when they are selling in quantity and know what will driven down the price. Or one group try to set a price on a market so they start with a high bid and low buy it now or high reservation and low buy it now.

I also don't believe Tug's suggestion is to put a high starting bid and low buy it now price.

Jya-Ning

 

[Bill4728]

Me thinks they lost a lot more than that. Considering they probably paid >$10,000 for it as I assume that as they paid for a postcard company to take it that they bought from the developer. Not to mention the n number of years MF they paid where they probably never even used the week they owned otherwise they will still own it.

They are probably at home going "heheheheheh Sucker. Good luck selling that worthless peice of #@$@#"

Bill

Yes it true that most all timeshare buyers buy from the developers and therefore pay way too much for their TS. BUT at least the developer will vary the cost to the buyer based on the size, season and quality of the unit being sold. The postcard companies do not do that. Basically they make it clear (but will not say out loud) that all TS are worthless and want the same >$3000 fee to take the worst blue week or a great red week.

The SoCal TS week I bought I'd value at >$5,000 but I was able to get it for $1500. I see many similar weeks ( which are only EOY) all the time on ebay selling for $1500- $2500, so my annual should be worth at least twice ($3000 - $5000). If the seller had spent 5 minutes and looked at the completed Ebay ads and seen what these units sell for he wouldn't have paid anyone >$3000 to take it off his hands.

 

[skinsfan]

You’re assuming all Postcard companies are the same. I have only really heard of ONE Company offering to take the property off the owner’s hand for a $3,000 fee. Also the resort doesn't charge everyone the same price for the same week and unit. It depends on how well the buyer negotiates with the resort on how much they pay. If you have ever flown before the person sitting next to you on the plane most likely paid a different price for the same ticket. The same rule applies to timeshares as well.

Yes it true that most all timeshare buyers buy from the developers and therefore pay way too much for their TS. BUT at least the developer will vary the cost to the buyer based on the size, season and quality of the unit being sold. The postcard companies do not do that. Basically they make it clear (but will not say out loud) that all TS are worthless and want the same >$3000 fee to take the worst blue week or a great red week.

The SoCal TS week I bought I'd value at >$5,000 but I was able to get it for $1500. I see many similar weeks ( which are only EOY) all the time on ebay selling for $1500- $2500, so my annual should be worth at least twice ($3000 - $5000). If the seller had spent 5 minutes and looked at the completed Ebay ads and seen what these units sell for he wouldn't have paid anyone >$3000 to take it off his hands.

 

[rickandcindy23]

Jya-Ning, I couldn't get that link to work. Where would I go on 4MS to see your list?

I agree with you, Bill, I don't think any owner would still get rid of their timeshare, knowing theirs would fetch this much on eBay.

Some weeks really do not even sell for $1, as many have posted here. The insignificant number of people that even know about eBay listings are not interested in low-season weeks. I would say that most bidders are very knowledgeable about timeshare and know where the values are. I have been in more than one bidding war with other TUGgers.

There is a whole market out there for these $1.00 weeks. I have seen the excitement in my kids' friends' faces when they hear about all of our vacations. These are the people we need to attract to the possibility of trying out the $1.00 weeks or the free ones at the resorts, before the salespeople get to them. Our foster son planned a week of vacation at Hilton Seaworld in a three bedroom for him and his friends with his very cheap week. Between the 7 of them accommodations will be less than $100 each for the week. Those are really nice accommodations, too.

We also have been educating the firefighters at Rick's station about timeshare. Word travels fast and it seems that more and more people are asking him about timeshare and the best way to get in. Rick and one of the other guys are very knowledgeable about timeshare and will talk it up, doing that for years, but they didn't tell the guys how to buy cheaply, so about six years ago, one of the guys happily announced that he and his wife had just been to New Smyrna Beach and the Keys and bought not one, but two timeshares from the developer. The rescission had passed. Rick and Tom were kicking themselves for not talking to him more directly about timeshare.

So a month ago, we discovered we could not use a week we exchanged to get at Kahana Falls. We were very disappointed because that is such a nice resort. So we offered the week to another firefighter and his wife, who had never been to Hawaii before, and they were so crazy about the place, they stopped at an HOA meeting there and asked how much a two-bedroom would cost. They quoted prices of about $11K, and the maintenance fees were very high. He decided to wait and talk to Rick first. Rick is trying to decide what to advise because we are into Fairfield points and think that is a good way to go, but we have lots of weeks at our Colorado resorts too, which pull pretty well in both RCI and II. We need to sit down with both of them, before they make a serious mistake. But there are so many ways to go! It is so difficult to advise people. That would make a great new thread, so here I go...........

 

[TUGBrian]

keep this up...I would like to use much of this material in a new page I will create here on TUG to inform new users of their options in these situations...and to announce the "free ad till it sells for bargain basement timeshares".

 

[Jya-Ning]

Jya-Ning, I couldn't get that link to work. Where would I go on 4MS to see your list?

Try now

Jya-Ning

 

[rickandcindy23]

Thanks, Jya-Ning, I saw my own recent purchase listed there.