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Why don't more owners resell through Marriott?

KathyPet

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I just read on another thread that someone got a MMC platinum for $7100.00. this raised a question in my mind about why someone would sell on their own vs letting Marriott resales handle it. Now I know that marriott resales will only list it if the resort is sold out and a lot of people are listing units in non sold out resorts. I also know that sometimes even if Marriott resales will take it there is a waiting list of people ahead of you that want to sell. For example it took 18 months for my Barony Beach unit to reach the top of the wait list and for Marriott to send me a listing agreement but once they had accepted it for sale it sold within 45 days. I netted $13980.00 for a oceanview gold week.
A couple of months ago I contacted them and asked about resales on MMC and found out that they would accept my unit for immediate listing with no waiting list. Once they found me a buyer I would net $14250.00 for my platinum week. I have no hassles trying to find my own buyer and deal with all the negotatioins and low ball offers etc. etc. The seller of the MMC unit I mentioned only got $7100.00 for their MMC and they could have received double that if they had sold it through Marriott so what gives here?
 

sernow

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There is a lot of emotion that comes into play when someone sells something, and emotion clouds rational thought. The emotion can be exaggerated by underlying circumstances that force a sale. Death, illness, or divorce are some scenarios where it may not be possible to wait for an extended period of time to pursue what might otherwise be the most logical and profitable means to complete a sale.
 

KathyPet

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I am not sure that selling it privately necessarily results in a quicker sale. While I was waiting for my Barony to get to the top of Marriott's waiting list I had it listed on Red Week and on TUG. It was the lowest price Gold Oceanview Barony Week listed at $15000.00. I had three inquiries in the time I had it listed and one offer for $9000.00 (netted $13980.00 from Marriott resales).
 

thinze3

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You raise an interesting point.

Why wouldn't someone buy cheap units at sold out locations like Manor Club off of eBay and then use them as down payments (equity upgrade) towards newer locations like Lakeshore Reserve? It could be a $6-7K swing.


Terry
 

jerseyfinn

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A decision to sell an MVC week via Marriott or to go privately ( or even E-Bay ) is going to depend in part upon where you own and in which season. And this decision derives from how well one understands what they have purchased. Judging by how I've seen some folks price their platinum weeks here on TUG and other sites, I'd suggest that some folks don't quite understand the process.

Assuming that Marriott will accept your week for listing, you may expect 60% of the current developer selling price for that week. The wildcard here is how long it will take to sell that week and where your week falls in the sales queue. Note also that Marriott itself sets a limit for how many weeks it will accept for sale. Folks who own platinum weeks and folks owning gold weeks at specific MVC resorts should expect to have a decent prospect of Marriott accepting and eventually selling their week. Folks who own silver weeks are basically on their own when it comes to selling as it is unlikely that much of a market exists in terms of Marriott selling the week ( though it never hurts to ask ). Thus the easy way out is to let Marriott do all of the work for you.

However you may be able to eke out more money if you sell privately ( perhaps 65% to 75% of the current developer selling price if you are extremely patient ). This is the area where I see lots of folks making a big mistake when they list their week privately. They list their platinum or gold week well below Marriott's 60% threshold. Now indeed, some folks may need to complete a sale quickly as the need to liquidate for cash is more pressing than securing a higher return. But I still feel it wiser to list above the 60% threshold and to note that the price is negotiable. Sit back and see what sort of offer comes through.

ROFR is a murky area regarding MVC. It's an effort by Marriott to protect the developer market, but it also serves as quasi protection for platinum and some gold owners who threw their lot into the developer side of the equation. Once again, only MVC knows who is buying what and at what price, and this most certainly varies by resort and market conditions at the moment. That's why we sometimes see contradictory outcomes when ROFR is or is not exercised.

I don't know that any single strategy exists. But platinum or most gold sellers could list with Marriott and place their own private ads utilizing Marriott's 60% value as their minimum mark. You get the best of both worlds as you wait and work your way up the Marriott sales queue while you take a shot at selling your week yourself for a modest premium over what Marriot is going to give you.

Folks in a hurry, or folks with less demand weeks can list privately and keep that 60% line in mind while being willing to negotiate for less. Hopefully if you're selling a week, you've gotten years of use and enjoyment out of it and you walk away with some cash in pocket to live your next dream or need.

Barry
 

potchak

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I can tell you I have been very tempted to try the -"buy it cheap, Use marriott to resell it" theory. I was tempted to do it with Manor Club. Because if you can get a unit for under $10K, you can net $4K! Pretty good deal to me, for a short 6 month timespan more than likely.

Although, we have our EOY Waiohai on the waitlist to be sold right now. We were told that we were about #100 on the list to sell. I figure that means they might actually get to it in about 2 yrs. By that point we will decide if we want to keep it and use or rent it, or sell it.
 

jerseyfinn

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Can you jump off the list at the last minute?

Charles
Yes. That's the nice thing about going with Marriott sales. You get in the queue, have a guaranteed price, and you're free to sell it yourself. If you find a buyer on your own, or you simply decide not to sell, you notify Marriott and the deal is off.

Barry
 

KathyPet

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Yes, the waiting list I referred to is a list that Marriott keeps of owners who have contacted them about selling. It took me about 18 months to move up to near the top of that list. Marriott then send you a letter and tells you they are wiling to accept your listing. You sign the letter indicating that you are still interested in selling and then they send you a formal listing agreement to sign. I think that signing and returning the listing agreement is what actually "activates" your unit for sale. You can drop off the wait list by not returning the letter they send you within the designated time period. They then assume that you are no longer interested in selling and continue to move down the list.
I do however disagree with the comments made about resale sellers marking their units at less than 60% of Marriott's price. For my gold Barony week I netted $13980.00 which was 60% of Marriott's price. When I had my unit listed on TUG and Redweek my unit was priced at $15,000 and was the cheapest gold oceanview week that was listed. Everyone else was asking $16,000 and above
 

rsackett

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So how do you go about getting on Marriott's waiting list?

Ray
 

KathyPet

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Just call Marriott resales and tell them you are interested in selling and what resort, view and season you own. THey will let you know if they are doing resales for that resort and season and if they have a waiting list of people ahead of you waiting to sell or not. If you want to go ahead just add your name to the list.
 

bigbillf

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I am a Starwood resale owner. (Starwood treats me like an outcast.) How would one buy one of these from Marriott? Through a T/S presentation that most of us always avoid? (DW won't let me attend them any more.) If I would want to purchase MMC from Marriott what do you need to do?

I was just at MMC Sequel and the 2BR LO was exceptional. The area (Ford's Colony) was spectacular.
 

pianodinosaur

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ROFR is a murky area regarding MVC. It's an effort by Marriott to protect the developer market, but it also serves as quasi protection for platinum and some gold owners who threw their lot into the developer side of the equation. Once again, only MVC knows who is buying what and at what price, and this most certainly varies by resort and market conditions at the moment. That's why we sometimes see contradictory outcomes when ROFR is or is not exercised.

This is an excellent point that seems to apply to HGVC as well. Could it be that many MVC members who purchased platinum or gold are happy with their purchase and don't want to sell?
 

travelplanner70

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I was told that Marriott would only buy my Marriott timeshare back for what I bought it. Since I bought it on resale market, I could not make a profit - it would be break even.

Am I asking the wrong question, I wonder?:confused: Should I ask them to sell the unit for me instead of buying it back? Or, if they sell it for you, they still will not give you more than what you paid for it - even if 40% of their selling price is higher than the buyback price?

I hope I explained my confusion well enough. Of course, I am confused. :)
 

KathyPet

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I wasn't asking why more Marriott owners were not selling their units what I wanted to know was why of the Marriott owners who are selling for whatever their reasons are there are so many trying to sell through the various web sites or through brokers rather than placing them with Marriott resales to sell.
 

KathyPet

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I woukd think that you want Marriott to list and sell it for you. Marriott seldom buys units back directly from owners.
 

Lawlar

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Maui Ocean Club?

Does anyone know if Marriott will be representing owners who want to sell their units at Maui Ocean Club? I'm assuming that MOC is almost sold out.

I would think that Marriott could keep its sales force in tact and keep running the same tours (and helpful sales presentations:) ) and just keep selling and reselling the same units forever. Marriott wouldn't have to rebuild the facilities, but it could continue making the same profits. Marriott could just describe the ongoing sales as phase 20 / phase 21, etc - and keep raising the prices.

Has anyone ever wondered what Marriott's profit margin is on its TS sales at its new complexes? Must be a nice profit margin. But is it better than 40%?
 

dioxide45

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Does anyone know if Marriott will be representing owners who want to sell their units at Maui Ocean Club? I'm assuming that MOC is almost sold out.

I would think that Marriott could keep its sales force in tact and keep running the same tours (and helpful sales presentations:) ) and just keep selling and reselling the same units forever. Marriott wouldn't have to rebuild the facilities, but it could continue making the same profits. Marriott could just describe the ongoing sales as phase 20 / phase 21, etc - and keep raising the prices.

Has anyone ever wondered what Marriott's profit margin is on its TS sales at its new complexes? Must be a nice profit margin. But is it better than 40%?
Remember, that 40% that Marriott keeps isn't all profit margin. They have to pay for the incentives for tours, people to book the tours and a commission to the sales agent. So they don't net 40% on the sales the resell for current owners.
 

Pit

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I wasn't asking why more Marriott owners were not selling their units what I wanted to know was why of the Marriott owners who are selling for whatever their reasons are there are so many trying to sell through the various web sites or through brokers rather than placing them with Marriott resales to sell.
How do you know that they are not also on the Marriott wait list? When I'm trying to sell something, I list it everywhere I think it might attract a buyer.
 

jerseyfinn

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I do however disagree with the comments made about resale sellers marking their units at less than 60% of Marriott's price
Kathy, I'm only suggestng that some folks who sell privately do indeed list for significantly less than 60% of current selling price -- I've even seen it here on TUG -- but I'm speaking here about platinum and some gold listings. Veteran owners like yourself know better how to list to their best advantage. My own guess ( and a guess it is indeed ) is that there's still lots of folks out there who don't realize how the resale market works for MVC owners, especially those folks selling platinum and gold weeks.

We MVC folk are lucky in that in many instances we can venture a decent guess as to what our MVC week sells for. This is because Marriott is a big name and it maintains an active sales presence at its resorts. It's a lot harder to do this with many other TS resort brands.

As to the question about Marriott purchasing a week directly from an owner. It is indeed a rare event. However, it is not unusual that Marriott might buy back a week on the spot if one is purchasing additional weeks at a new resort. Of course you're not taking your money off of the table as you're rolling it back into MVC. And this sort of buy-back is predicated upon the desirability of the week/season you offer for trade and the sort of purchase incentives a specific resort offers at the time.

Barry
 

JimIg23

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I would think that you want Marriott to list and sell it for you. Marriott seldom buys units back directly from owners.
Happened during one of my purchases. Before the owner signed the contract on the MMC I wanted to buy for 8k, the seller called Marriott for proof of ownership, when Marriott heard they wanted to sell, they offered her more than what I was going to buy for it. The sale didn't even go thru ROFR. This was over a year ago and I think they really wanted MMCs in their inventory.
 

Bob B

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What is the deal once the resort is fully sold out? How do they establish the price, i.e. 60% of what?
 

winger

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I am a Starwood resale owner. (Starwood treats me like an outcast.) How would one buy one of these from Marriott? Through a T/S presentation that most of us always avoid? (DW won't let me attend them any more.) If I would want to purchase MMC from Marriott what do you need to do?

I was just at MMC Sequel and the 2BR LO was exceptional. The area (Ford's Colony) was spectacular.
Good to hear about MSE/MMC - our home resort which we won't visit until possible 2010!

Call MMC and ask for the sales ofc - Jay or Tom can help you purchase a MMC or MSE unit.
 

winger

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kathy and Potchok, you guys selling off your MVCI inventory??? Tell me its not so :eek:
 

potchak

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We are thinking of selling off the Waihai only. We figure it might take them 2 yrs to sell it, by that point we will make a decision whether or not to keep it. We have seen them get anywhere from 2000-2500 for rentals, so we might keep it to offset some of the maintenance fees we have.

Now, with the purchase of our Disney points we will be paying over $5000/yr in MF's, we will need something to offset it! :)
 
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