Marriott BUYBACKS AND TAKEBACKS [2012 / Ongoing]

[vacationtime1]

Two months ago (12/2016), Marriott's resale department had no interest in selling my two eoy Waiohai OV units at any price. Marriott would have accepted a deedback (how nice!).

They offered to sell my 1bd Kauai Beach Club OF unit for $11.3K -- from which I would have received $6K (which is more than I originally paid for it).

 

[Saintsfanfl]

I called and they stated that.

It is a DSV 1 Red EY. Nice unit.

Not sure about others but she stated it is across the board. I asked about few others and they were dropped too.

I remember DVS 1 White used to be $7800 but now only $6,600 on the web site.

I would call and ask them about your specific units and you can report back.

All of my listing agreements state that they can raise the price but not lower it. I was under the assumption that they allow the existing listings to go to contract at current prices before they lower the advertised price on the web and the new listing agreements. Did you have an actual notarized listing agreement or were you on the wait list pre-listing?

 

[BocaBoy]

The Marriott Resales price for each of my weeks has not changed in a couple of years.

 

[Saintsfanfl]

Two months ago (12/2016), Marriott's resale department had no interest in selling my two eoy Waiohai OV units at any price. Marriott would have accepted a deedback (how nice!).

They offered to sell my 1bd Kauai Beach Club OF unit for $11.3K -- from which I would have received $6K (which is more than I originally paid for it).

It's not that they will not broker your unit. The issue was they already had enough listing agreements and did not need another at that time. The prices are the prices so even if someone is willing to go lower it can't happen.

 

[vacationtime1]

It's not that they will not broker your unit. The issue is they already have enough listing agreements and don't need another at that time. The prices are the prices so even if someone is willing to go lower it can't happen.

I reached the same conclusion; I figure I will try them again next year on the Waiohai. We are happy to keep the Kauai Beach Club unit; we have little capital tied up in it and it is our entree into the Destinations Club.

 

[samara64]

Did you have an actual notarized listing agreement or were you on the wait list pre-listing?

I did have a notarized listing agreement but the new addendum overrides that. It says something like Change of listing price from x to a MINIMUM of y. When I asked if there will be an offer process with a minimum of y, she said y will be the new asking price.

The email states if I do not sign it, the listing agreement will be canceled.

I have a friend that is interested in buying it for about my net price with MVCI resale. I am weighting it over before signing since I have til March 8 to sign.

Saintsfanfl, Did you have a chance to call. What property are you listing with them.

 

[Saintsfanfl]

I have quite a few listed and many of them are under contract so they are already past a price change. I don't really want to call and possibly open the door to a lower price on a unit that is about to go to contract. Plus I don't always trust the answers I get from that group.

Your unit does seem to have been priced a little high compared to the others but now it has been taken off the website. I'm assuming it will go back on but they also lowered DSVII red between yesterday and today. They did not lower the white weeks so I am fairly certain this is not an across the board decrease.

What is likely happening is some of the more expensive weeks are not moving through resales. The salespeople are bundling the cheaper weeks because it requires fewer points for the bundle. By lowering the price of plats and reds, they have a chance at luring a potential buyer into buying more DC points. That same motivation doesn't apply to the cheaper weeks but we will see. If they do all go down by ~10% it doesn't change my situation much.

FWIW while I do see that DSVII red was lowered and DSVI red was removed, none of the units that I have been watching have changed. Not yet at least

 

[Chase]

Hi.

I have a platinum 2BR Lock Off. It's also eligible for destination points (I signed up for the program).

Is Marriott buying these back? If so...what's the going price?

Thanks.

[Threads merged.]

 

[jeepie]

You can sell it to a third party, but Marriott may buy it under ROFR (right of first refusal). No worries, you get your money either way.

You can also ask them to broker the sale for you:

"Please call 866-682-4547 to speak with a Marriott Vacation Club professional Monday-Thursday, 9 a.m.-5 p.m. ET and 10 a.m.-5 p.m. ET, on Friday."

 

[BocaBoy]

You can sell it to a third party, but Marriott may buy it under ROFR (right of first refusal). No worries, you get your money either way.

You can also ask them to broker the sale for you:

"Please call 866-682-4547 to speak with a Marriott Vacation Club professional Monday-Thursday, 9 a.m.-5 p.m. ET and 10 a.m.-5 p.m. ET, on Friday."

OP was asking about buybacks, not brokered sales. OP should call the number you gave and inquire about buybacks. If they are buying back Mountainside units, the buyback price is probably less than what could be netted by a MVCI resale, but may be higher than what could be netted by a private third party sale. At least that was my experience. A buyback would also be faster and easier and poses no risk to the seller of the deal falling through.

 

[Saintsfanfl]

I don't think they are buying anything back right now but that status can always change in a blink.

 

[Tokapeba]

I have a platinum 2BR Lock Off. It's also eligible for destination points (I signed up for the program).

Whats the deal with "Destination points"? Do they transfer with a private sale? If it was converted shouldn't it just be points?

 

[Saintsfanfl]

Whats the deal with "Destination points"? Do they transfer with a private sale? If it was converted shouldn't it just be points?

There is no such thing as "converted". It is called enrolled and the right to convert does not transfer upon resale. One of Marriott's goals in switching to a points based system was to be able to control the market. That goal is slipping from underneath them but so far they have not given in to resale buyers being able to convert to DC points.

 

[SkyBlueWaters]

OP was asking about buybacks, not brokered sales. OP should call the number you gave and inquire about buybacks. If they are buying back Mountainside units, the buyback price is probably less than what could be netted by a MVCI resale, but may be higher than what could be netted by a private third party sale. At least that was my experience. A buyback would also be faster and easier and poses no risk to the seller of the deal falling through.

Which property was your experience with for getting less with a 3rd party brokered sale? How much do brokers typically charge? Would you recommend MVCI resale then?

 

[SueDonJ]

Whats the deal with "Destination points"? Do they transfer with a private sale? If it was converted shouldn't it just be points?

There is no such thing as "converted". It is called enrolled and the right to convert does not transfer upon resale. One of Marriott's goals in switching to a points based system was to be able to control the market. That goal is slipping from underneath them but so far they have not given in to resale buyers being able to convert to DC points.

Expanding on that response, enrolling a Week is NOT a permanent conversion of the Week to DC Points. When sold an enrolled Week reverts back to un-enrolled and (according to the current eligibility rules) becomes ineligible for enrollment by the buyer/new owner. See the "Re-selling / Transferring Ownership ..." section on page 1 of the FAQ - MVC DESTINATIONS Points Program sticky thread.

 

[Saintsfanfl]

Which property was your experience with for getting less with a 3rd party brokered sale? How much do brokers typically charge? Would you recommend MVCI resale then?

MVCI charges far more than any 3rd party broker would dare on moderate to expensive units but the MVCI resale prices are so much higher than anywhere else that MVCI is generally the way to go. The only exception might be the extremely expensive units and even then a 3rd party broker might equal MVCI proceeds but exceeding it is doubtful.

MVCI actually charges less on the really cheap units because many brokers will work on a minimum fee where MVCI remains at 40% regardless.

 

[catharsis]

For the reference of the OP - strangely, according to the LIVE marriott official resales page they do not currently have any listings of a 2BR PLat an Mountainside, making it highly likely that you might be able to get yours listed through their broker program and sold quickly (i'd guess they sell quite a few to hybrid package purchasers through ski season)

IIRC the resale price on the site used to be about 23,900 - meaning you would net something around 14.5K

There's a recent ROFR clearance below that level on rofr.net, implying (I think) that marriott would be offering less than that for a buyback.

I suggest anyone wanting to sell a mountainside ski season week should call Marriott as they should be looking for units to sell based upon the information shown on the (recently redesigned) resales site.

 

[kds4]

Whats the deal with "Destination points"? Do they transfer with a private sale? If it was converted shouldn't it just be points?

No. An enrolled week is still a week, but it has the benefit of being able to be used by converting it to Destination Points on an annual basis if the owner chooses. When sold, the enrolled week becomes 'un-enrolled' and can no longer be 'used' by converting it to DC points if sold to a private owner. If the enrolled week is taken/bought back by Marriott, it will most likely be converted into its Destination Points value and added to Marriott's inventory to be resold as Destination Points at whatever their going retail rate is. Marriott does re-sell some weeks as weeks, but more often than not weeks that become re-owned by Marriott are permanently converted into their DC points value and sold as 'new' points.

 

[Saintsfanfl]

Marriott does re-sell some weeks as weeks, but more often than not weeks that become re-owned by Marriott are permanently converted into their DC points value and sold as 'new' points.

100% of all weeks re-owned by Marriott are permanently converted to the DC. Marriott does not re-sell any weeks that they own. All weeks sold through the resale department or as a hybrid package are brokered weeks sold by other Marriott week owners.

 

[bazzap]

100% of all weeks re-owned by Marriott are permanently converted to the DC. Marriott does not re-sell any weeks that they own. All weeks sold through the resale department or as a hybrid package are brokered weeks sold by other Marriott week owners.

I don't believe that is necessarily true for European MVC Resort weeks.

 

[Saintsfanfl]

I don't believe that is necessarily true for European MVC Resort weeks.

Yes that is probably true. I have my blinders on and only thinking about the units that I deal with.

 

[BocaBoy]

Which property was your experience with for getting less with a 3rd party brokered sale? How much do brokers typically charge? Would you recommend MVCI resale then?

I netted considerably more after MVCI's 40% commission by using MVCI Resales than the gross listing price recommended by one of the brokers highly recommended here on TUG. And it sold in 2-3 weeks, although closing took something like 3 months. It was a 2BR ocean front at Maui Ocean Club's new towers a little over 2 years ago. I highly recommend MVCI Resales if the number of sellers ahead of you on the list for the property in question is not too long. If it is a lower priced week and you want it done real fast then MVCI is probably not the first choice.

 

[dioxide45]

I think Marriott may also still market weeks to the Japanese market for their Hawaii properties.

 

[TXTortoise]

I netted considerably more after MVCI's 40% commission by using MVCI Resales than the gross listing price recommended by one of the brokers highly recommended here on TUG. And it sold in 2-3 weeks, although closing took something like 3 months. It was a 2BR ocean front at Maui Ocean Club's new towers a little over 2 years ago. I highly recommend MVCI Resales if the number of sellers ahead of you on the list for the property in question is not too long. If it is a lower priced week and you want it done real fast then MVCI is probably not the first choice.

So, a Marriott resale MOC 2BR/OF EOY listed at $17,700 today, would net the seller $10,600, after 40% commission with buyer paying closing cost?

A similar week listed by a broker at $12,000, less 20% in commissions and HI taxes, would net $9600, plus buyer paying closing cost. (or @ $14K, net $11,200)

Interesting way to bracket what the resale net price to seller might be and theoretically suggests what comparable Redweek pricing should be if someone wanted to sell quickly, e.g., $10-11K?

But could see why a seller would use a broker, just to reduce the hassle factor of selling and closing and reach a wider market.

Granted, this example is of relatively high-priced weeks.

 

[Saintsfanfl]

But could see why a seller would use a broker, just to reduce the hassle factor of selling and closing and reach a wider market.

Marriott is a licensed broker and there is no wider market than Marriott resales. They probably move more resale units than all other brokers combined.