Selling an SVO property with/without SVN membership

[Bob749]

We are considering the purchase of a SVO interest but have a question about selling it at some point in the future. As we understand it, you cannot transfer your membership in the SVN if selling to a third party in the secondary market. The salesman we're working with described that policy as a way for Starwood to maintain price integrity. He also said that they would maybe (emphasis on the "maybe") buy the interest back so they can resell it as new with the SVN membership. When queried about the price they would buy it back, the response was "likely" for the price we paid for the interest. Again, no guarantees that they would in fact purchase it nor the price.

A key feature of the SVO program for us would be the ability to trade for other Starwood villas and SPG points. It seems a downside for a resale would be the loss of those trading privileges. We're curious if others have been told the same info and/or if anyone has been through a sell-back process with Starwood.

We appreciate any information others may be able to provide.

 

[LisaRex]

We are considering the purchase of a SVO interest but have a question about selling it at some point in the future. As we understand it, you cannot transfer your membership in the SVN if selling to a third party in the secondary market. The salesman we're working with described that policy as a way for Starwood to maintain price integrity. He also said that they would maybe (emphasis on the "maybe") buy the interest back so they can resell it as new with the SVN membership. When queried about the price they would buy it back, the response was "likely" for the price we paid for the interest. Again, no guarantees that they would in fact purchase it nor the price.

Sure, Starwood MAY buy back the villa. They MAY mail you a check for $10,000, too.

Both are highly, highly unlikely.

I've never heard of SVO buying back their interest in any of their resorts. Ever. What they may do is apply your purchase price to a more expensive villa if you want to upgrade. But if past behavior is any predictor, they won't offer to buy back your unit at any price, let alone refund your purchase price when you want to sell. That's absolutely laughable.

If you want to maintain the ability to trade with the network, buy a mandatory resort (they are listed in the sticky above) on the resale market as SVN membership transfers upon resale. Or, if you really want to buy at a voluntary resort (such as Princeville) either buy on the resale market and forego SVN altogether OR buy from the developer knowing that the price you paid is greatly inflated and you'll never recoup it, so they'd better throw in a boatload of StarPoints to make up for it.

Good luck to you.

 

[DeniseM]

Welcome to TUG!

Unfortunately, (and typically) you got about half the truth from your salesman. SOME Starwood timeshare do have Staroptions on a resale. They are called mandatory resorts and they are:

* Harborside at Atlantis
* Vistana Villages (except Amelia & St. Augustine)
* Westin St. John (except Bay Vista)
* Westin Ka'anapali & Westin Ka'anapali-North
* Westin Kierland Villas

If you buy a resale at one of the above resorts you WILL get Staroptions and you WILL have the ability to exchange in the SVN.

You won't have StarPoints with any resale, but frankly, the Starpoint value of one week isn't enough to be concerned about and certainly isn't worth the $10-$20K more you would pay the developer.

Let me give you an example - I own at the Westin Ka'anapali (Maui) and the Starpoint value of my 2 bdm. isn't even enough points for a standard, no view room at the Westin Maui Hotel for a week - the conversion rate is just very poor and converting to Starpoints just doesn't really benefit a single week owner.

For lots of factual info. about how Starwood works, check out the resources we have at the top of the board - I would start with the Starwood FAQ.

If you are considering buying from the developer, I hope you will put on the brakes and thoroughly investigate buying resale. There is almost no reason to buy your first Starwood week from the developer and it will save you thousands of dollars if you buy resale.

To get an idea how much you can save buying resale, look at the ebay database in the Owner Resources Sticky (top of board) showing recent Starwood sales on ebay - then compare that to the developer prices, also in the Owner Resources sticky at the top of the page - you will be astounded!

And I agree with Lisa - we have never heard of Starwood buying back a timeshare from an owner.

Good luck!

 

[Ken555]

He also said that they would maybe (emphasis on the "maybe") buy the interest back so they can resell it as new with the SVN membership. When queried about the price they would buy it back, the response was "likely" for the price we paid for the interest. Again, no guarantees that they would in fact purchase it nor the price.

ROFL :hysterical:

Those sales guys ought to be on Broadway! What fiction!

 

[Bob749]

Thanks for the Feedback

Thanks for the advice. Will definitely check out the ebay angle to compare the prices. As usual, what sounds too good to be true is just that! Cheers!

 

[nodge]

The salesman we're working with described that policy as a way for Starwood to maintain price integrity. He also said that they would maybe (emphasis on the "maybe") buy the interest back so they can resell it as new with the SVN membership. When queried about the price they would buy it back, the response was "likely" for the price we paid for the interest. Again, no guarantees that they would in fact purchase it nor the price.

Hi Bob749,

Being told by an SVO salesman that SVO MAY buy back your timeshare for what you pay for it as an inducement to get you to ACTUALLY buy a new developer unit, especially in the face of the fact that SVO hasn’t ever “bought back” a single developer purchased timeshare from a single owner at anything close to the original developer purchase price and has not stated ANY interest in even considering this idea in the future sure sounds like your salesman crossed the line and stumbled into the world of good ol’ fashioned, and illegal, deceptive sales tactics.

(Granted, SVO has probably taken back a villa or two for free by folks who no longer want to be burdened with annual maintenance fees, or more probably just stop paying them, and it has taken back a unit or two by giving “credit” for the original purchase price, but ONLY IF the owner turns around and instantly applies that “credit” to the purchase of a more expensive developer unit, your salesman's coments were aimed at deceiving you into thinking that these types of transactions were something more.)

Fortunately, we mere consumers need not burden ourselves with that line. If SVO corporate isn’t doing enough to prevent salesfolk from crossing it, and it appears from your experience that it isn't, there are government agencies whose sole purpose is to define it and then make sure such salesfolks resist the urge to cross it.

If I were you, I’d download this form and write-up what the salesman told you, and then mail it to the address on the form. If the deception took place in Arizona, I'd also follow the procedures spelled out here (Click on "Investigations FAQs" on the left). He MAY be able to wiggle around this one, especially since you didn’t actually buy anything from him. But,at a minimum, I guarantee you that he will think twice before crossing that line again. As a result, you MAY even prevent a less savvy consumer than you from being duped by him down the road.

-nodge

Hey all of you orange eating SVO corporate lurkers! What say you about this type of deceptive sales practice? What steps have you taken to prevent it from arising? No matter. We’ll handle it for you. You just may not like how we handle it. -n

 

[Bob749]

Good Point, Nodge

Thanks, Nodge.

We were at the new Steamboat Springs villas that are now being built, so I assume I'd need to file the complaint thru the Colorado real estate department....if I was done with them. We're still weighing a secondary purchase at another location and then doing a developer purchase at Steamboat (with a requal if the secondary is a voluntary location). Might use his "slip" as some additional leverage if we get into negotiations.

Appreciate your (and other's help). TUG is a great resource!!

 

[James1975NY]

SVN

We are considering the purchase of a SVO interest but have a question about selling it at some point in the future. As we understand it, you cannot transfer your membership in the SVN if selling to a third party in the secondary market. The salesman we're working with described that policy as a way for Starwood to maintain price integrity. He also said that they would maybe (emphasis on the "maybe") buy the interest back so they can resell it as new with the SVN membership. When queried about the price they would buy it back, the response was "likely" for the price we paid for the interest. Again, no guarantees that they would in fact purchase it nor the price.

A key feature of the SVO program for us would be the ability to trade for other Starwood villas and SPG points. It seems a downside for a resale would be the loss of those trading privileges. We're curious if others have been told the same info and/or if anyone has been through a sell-back process with Starwood.

We appreciate any information others may be able to provide.

There are five properties currently which allow the SVN membership to transfer on the resale market. They are Sheraton Vistana Villages (Bella and Key West phases), Westin Kierland Villas, Westin Maui, Westin St. John and Harborside Resort.

Having said that, the ability to redeem your vacation ownership interest into SPG points will NOT transfer on the resale market even if purchased at a "mandatory" SVN property.

While it is true that being able to have the SVN membership transferrable through resale, I would always recommend purchasing on the resale market UNLESS you absolutely want to have the ability to convert into SPG points. Even then, you can roughly cut your sales price in half by purchasing through resale. Are the SPG points still worth it?

 

[DeniseM]

Welcome to TUG, James!

Are you a Starwood owner?

Thanks for posting!