Today a small one bedroom annual 1-52 SDO sold for $1 on EBAY. It isnt even a situation where usage starts in 2009 and m-fees are due. Usage starts in 2010. ONE DOLLAR. This is how bad things are getting for Starwood owners. Its pretty sad.
It is sad. But, I wouldn't read too much into that auction.
It is more a sign of the times, and timing. Few want to sign on to a maintenance fee immediately coming due. Meanwhile, the seller wants nothing more to do with it.
What we don't hear much about at all is the situation where an owner signs on with a PCC, and forks over 3k+ to take the share off their hands. The PCC is the likely seller at a $1 auction. The smart ones have learned to not get too greedy. Better to sell for a buck, than have the poor owner get another HOA bill and cry bloody murder. Or, be on the hook for the fees themselves.
I had a situation occur that makes my point.
Some months ago a WMH Silver owner called me. They were referred to me by the BBB.
The prior evening the owner attended a PCC presentation and signed up, but had not yet paid the $3400. For whatever reason it was not working for them. They wanted O-U-T. And believed what the PCC was telling them.
It took a fairly long discussion to convince them that there was a better way. Finally, I simply said that they could just sign the deed over to me, and save $3,400. That did it.
I didn't want the timeshare or the fee obligation. So, offered to sell it and split the sale price with them 50-50.
Bottom line, it sold for $2,200. Gave them $1100. They were ahead of the game by $4500.
Point is that for every story similar to this one (and there are a number), hundreds (thousands?) simply fork over the timeshare .
Most bargains on ebay are not a true reflection of the "market". They are the result of a scam perpetrated on an owner who swallowed it, hook, line, and sinker. The slimy sales job got it there.
The difference these days is potential buyers are more reluctant than ever to assume the fees. So, it's not that a $1 sale is remarkable, but that some piece of dirt actually made over $3000 net from the sale. Was not too long ago that they may have made $5-6000.
I just wish that those owners who continue to be conned would themselves auction it off for a buck. They would be way ahead, and we would see many more $1 auctions than exist now.
The difference is that we don't see the owners who are actually paying to be done with it.
