When to buy from the developer!

away we go said:

The product she's offereing, BlueGreen timeshare points backed up by a timeshare deed for a week at Shenandoah Crossing, has to be bought full-freight from the developer. She leans toward us across the table & in a low, confidential tone says what we should do is buy her lowest-cost BlueGreen points package, because full-freignt BlueGreen owners can add more points from any source if they want. So as savvy timeshare people, she said, we should buy small-scale from her & then economically build up our BlueGreen points total to something more significant, resale, via eBay. "But," she added, "if anybody ever says I told you that, I will deny it."

That was the 1st time we heard anybody in the full-freight timeshare biz even acknowledge that there is such a thing as a resale market in timeshares or timeshare points, much less suggest combining "used" & "new" points as a way of getting us to buy some of their "new" ones. As to what we were told about blending "new" & "used" BlueGreen points, I don't know how much faith to place in that -- for sure I'd need to get it in writing if I were inclined to go for it.

Click to expand...

As I read this, I noted that there may be a time when buying from the developer does make sense. (In the example above it doesn't) BUT, there are at least 2 examples in which buying from the developer does make sense.

First- When it is a new resort (or super platinum week) which you just have to own and isn't available on resale.

Second - When resale purchases do not include a very desirable "Club" membership. The example to this is the Starwood network or Club Sunterra. Both this chains, have lots of great priced resales. But when you buy the unit, you find out that you don't get membership in their network. (unless at starwood if you buy a mandatory resort). The solution is to buy from the developer but do so after you bought your cheap resale. You can then make a deal with the developer to include all your TS in the club/network for the price of a single developer purchase.

I follow Spence's posts on Sunterra frequently and understood that you could "buy your way" into the Sunterra points system by paying a fee. Isn't that the case? Are there special benefits to buying from the developer that you cannot get through a resale and a conversion to points from Sunterra?

Bluegreen is a program that has interested me for a quite a while. We should take some time and go through a presentation, but the only places we are going in the near future are Oahu and Maui. I doubt they sell their program from there.

I enjoy Sunterra Club membership and the resorts and the exchange availability via II. There is no complaint whatsoever from me buying from the developer.

I would not buy re-sale. Sunterra is extremely resale unfriendly. Even paying $2995 is not worth it, unless you get alot of points resale, like 30,000 or so.

Should Sunterra be more resale friendly, I would have bought more. Once I buy resale, there are more options than buying from Sunterra at the high price.

rickandcindy23 said:

I follow Spence's posts on Sunterra frequently and understood that you could "buy your way" into the Sunterra points system by paying a fee. Isn't that the case? Are there special benefits to buying from the developer that you cannot get through a resale and a conversion to points from Sunterra?

Bluegreen is a program that has interested me for a quite a while. We should take some time and go through a presentation, but the only places we are going in the near future are Oahu and Maui. I doubt they sell their program from there.

Click to expand...

According to Spence's most recent post, you can't buy in any more. thread You must buy a small package from the developer and all other units will be enrolled at that time.

Last month you could buy DVC directly from Disney for LESS than the resale prices....this special is now over and is is cheaper to buy resale now.

What's fascinating is that the timeshare salesperson demonstrated some honesty and a desire to fill the potential buyer's true needs.

How often do you hear that one?

Never...

I would have to say buying from a developer is a rip! You can buy the same unit at the same resort if you just look at folks who are trying to resale.


Scott

Putter-T said:

I would have to say buying from a developer is a rip! You can buy the same unit at the same resort if you just look at folks who are trying to resale.


Scott

Click to expand...

Most of the time this is true. However, there are times when it's not.

I have seen posts on TUG from Marriott owners who purchased pre-constrcution and were later able to sell that unit for as much or more than what they originally paid for it. Marriott does have a buy back program at some resorts that is actually pretty decent. At this point, it's been reported to me that I could sell back my OP week for nearly what I paid for it. Personally I don't know if that's true as I have no interest in selling that week.

dougp26364 said:

Most of the time this is true. However, there are times when it's not.

I have seen posts on TUG from Marriott owners who purchased pre-constrcution and were later able to sell that unit for as much or more than what they originally paid for it.

Click to expand...

Good pre-construction deals are far and few between now. In fact, I'm not sure I would classify any of the recent preconstruction deals as good deals.

Marriott can sell these things like hotcakes, so they just don't give the deals they have in the past, and I doubt they ever will again, they simply don't have to.

The only time I can think of to buy from Dev is when its a new high end unit that you want, and you want to go during holiday or super primetime. You could wait to buy resale or rent in that situation as well, but resale units won't be readily available, so you may wait a long time, and renting those type of units will cost you big coin.

Regards.
Joe

I love my EBay purchases!!

I never would have bought from a developer. But I bought a really cheap($250 plus $400 in fees) August week in the Catskills on eBay. We liked it so much I joined TUG and did a lot of research. Now I own 6 timeshares. All good. All Summer weeks or Summer floats. I spent a total of about $7000.

This year we couldn't use a lot of the weeks so I rented them out and covered the maintenance fees.

I feel like I own a country house. Only it is better. I don't do any upkeep. I can exchange and go to other places if I feel like it. I never would have considered paying developer prices. They are more than a down payment on a cottage or house.

Typically you can get the week at the resort you want for about 25% of the developers price if you shop around the internet.

On EBay it takes longer to find what you want but it is usually even cheaper than that. America's last vacation bargain!!

I could buy directly from the Developer if it was a Resort I knew I would use every year; if it was a Fixed Unit/Fixed Week and the week I just had to have; if the location of the Unit was perfect; i.e next to a friends or relatives unit, first floor if handicapped, best view, walk out to beach, etc. Pick your reason(s).

Same criteria could hold true buying resale and paying up for exactly what you want

GEORGE

mamiecarter said:

Now I own 6 timeshares. All good. All Summer weeks or Summer floats. I spent a total of about $7000.

Click to expand...

You and I think alike. I think I own 6 Weeks for a total of about $6,000.

GEORGE

You say "no" I say "yes"....

I’m a contrarian – I, many times, do the opposite of the general public – this works great in the stock market. If the TUG mantra is “Never buy from the developer” that peaks my interest in buying from the developer.

What if you could talk the developer into selling you the unit at half their rate? That rate is going to be close to the resale rate – as a general rule. Would you buy?

Or, if the developer will sell you the unit at normal price or a little less and you can lock in the highest floor in the exact condo you want, and no one else can, would you buy from the developer?

If you could buy a garden view and the developer deeded the week as an ocean front – would you buy from the developer?

My point is that just like most folks know enough to NOT pay the sticker price for a new car, so should you NOT settle for the developer’s offering. Your skills at negotiating a deal can sometimes result in a fantastic deal – one worthy of buying from the developer.

PerryM said:

What if you could talk the developer into selling you the unit at half their rate? That rate is going to be close to the resale rate – as a general rule. Would you buy?

Or, if the developer will sell you the unit at normal price or a little less and you can lock in the highest floor in the exact condo you want, and no one else can, would you buy from the developer?

If you could buy a garden view and the developer deeded the week as an ocean front – would you buy from the developer?

My point is that just like most folks know enough to NOT pay the sticker price for a new car, so should you NOT settle for the developer’s offering. Your skills at negotiating a deal can sometimes result in a fantastic deal – one worthy of buying from the developer.

Click to expand...

Perry, I have to agree with you. When you can get something from the developer which may be difficult or impossible to get resale then "buy from the developer".

After seeing the plans for the PH tower, it is unbelievable!! I'm still not brave enough to buy a premimum week at there but I can see where it could make sense. Good Luck

I just used my week 24 in aruba at the mill just b4 going i put in a request at my resort network i bought my studio from them for 4100 i got a call today they had the same week in a 1 br for 8000 to me the studio is better as im single and it has a patio and kitchenette which the 1 br doesnt have

dougp26364 said:

Most of the time this is true. However, there are times when it's not.

I have seen posts on TUG from Marriott owners who purchased pre-constrcution and were later able to sell that unit for as much or more than what they originally paid for it. ....

Click to expand...

"posts on TUG"? Usually, when I've seen these claims, it includes a lot of Reaganomics. Like valuating their Marriott reward points at 2cents per points, and valuating their time spent at the resort at full rack rate, etc. I'm not interested in an arguement, I'm not saying it's never happened. All I'm saying is, "posts on TUG" aren't the same as gospel, that' all.

Philip -

I'm one of those Marriott owners with "posts on TUG" about buying successfully during preconstruction. My Grande Ocean week would easily sell today at a price well above what I paid for it. My Grand Chateau 3BR, which I bought only three years ago, would sell today for almost what I paid for it.

Yes, in each case I received megapoints in connection with the purchase in deals that don't seem to exist these days. But the points weren't significant factors in my decision purchase. My primary purpose for buying from the developer was similar to the reason why someone might decide to buy a fancy car. I wanted those two timeshares NOW and there weren't any resales yet.

However, I would never buy a timeshare - any timeshare - from a developer with the expectation of being able to sell it for as much as I paid for it or anything close thereto. I was lucky. But I bought to own and use, not with the idea of ever reselling.

The product she's offereing, BlueGreen timeshare points backed up by a timeshare deed for a week at Shenandoah Crossing, has to be bought full-freight from the developer. She leans toward us across the table & in a low, confidential tone says what we should do is buy her lowest-cost BlueGreen points package, because full-freignt BlueGreen owners can add more points from any source if they want. So as savvy timeshare people, she said, we should buy small-scale from her & then economically build up our BlueGreen points total to something more significant, resale, via eBay. "But," she added, "if anybody ever says I told you that, I will deny it."
....

Click to expand...

I suspect this is just the latest way for timeshare sales reps to manipulate buyers. This sales rep probably figured out that she was dealing with a savvy purchaser who knew about the resale market. Rather than losing the sale, she tried to sell at least a small package by claiming that it would add special value to any resales purchased.

My understanding is that Bluegreen does have some special perks that don't usually transfer with resales, but that you can still get those perks if you buy resale from an "authorized reseller." Authorized resellers charge more than just plain old resellers who can't transfer the perks, but a lot less than Bluegreen itself does. I don't know the details about this, but the person to ask would be Boca Bum.

There are some cases where it makes sense to combine a small developer purchase with resale purchases in order to get some sort of "developer purchase only" perks such as access to an internal trading system or earlier booking priority. In addition to Starwood and Sunterra, Fairfield/Wyndham is another case where this may make sense for some buyers. Before even considering doing this, though, you need to be very savvy about the timeshare system in question. Also, it is generally necessary to have closed on the resales before making the developer purchase.

Dave M said:

Philip -

I'm one of those Marriott owners with "posts on TUG" about buying successfully during preconstruction. My Grande Ocean week would easily sell today at a price well above what I paid for it. My Grand Chateau 3BR, which I bought only three years ago, would sell today for almost what I paid for it.

Yes, in each case I received megapoints in connection with the purchase in deals that don't seem to exist these days. But the points weren't significant factors in my decision purchase. My primary purpose for buying from the developer was similar to the reason why someone might decide to buy a fancy car. I wanted those two timeshares NOW and there weren't any resales yet.

However, I would never buy a timeshare - any timeshare - from a developer with the expectation of being able to sell it for as much as I paid for it or anything close thereto. I was lucky. But I bought to own and use, not with the idea of ever reselling.

Click to expand...

We did too when we upgraded our MDSV-I to a fixed 2 br condo at the new Lahaina tower. We owned our Palm Desert unit more than three years but we used it, exchanged it and rented it out so we got our money's worth too plus the appreciation of the original sales price. How many other timeshare developers can claim the same success story? I know there are a few but not too many.

Of course, if you buy resale and sell it again yourself and buy something else with the profits, then your results will be better yet. Not too many people are aware of this now but it cannot stay a secret for much longer.

There are frequently inquiries here on TUG about "What are my chances of trading into ...?" Sometimes the responses are "Pretty good," but other times the answer is "Perhaps during a shoulder or off season." Hmmm...

Resales might be available, but few and far between, and, not necessarily dead center when you want to travel.

Given the amount of money spent on luxury cars (which have a short life span), houses larger than anyone ever needs, specialty counter tops, etc., I see someone paying for exactly what they want on vacation and getting it now one of the more modest excesses.

Sure, resales often (usually) make sense, but I don't see anything terrible about someone not wanting to make working the timeshare market (both when they buy and then when they attempt to trade for what they really want) their favorite hobby and just wanting to buy exactly what they want.

"Roger" said:

Sure, resales often (usually) make sense, but I don't see anything terrible about someone not wanting to make working the timeshare market (both when they buy and then when they attempt to trade for what they really want) their favorite hobby and just wanting to buy exactly what they want.

Click to expand...

.....which is precisely what we did with our Smugglers Notch weeks.
We had been to Smuggs, done the very low key sales tour and decided we wanted to buy.
We spent several months deciding what we wanted: new North Hill development, 3 bdrm, ground floor, weeks 52 & 1. The only thing we couldn't justify was buying a 16-week Family Share for a 2 week annual ski vacation.
We considered resale, but the chances of buying our two weeks in ANY 3 bdrm units before the date of our next (already planned and flights booked) ski vacation was nil.
So, when we heard about a new 'timeshare' building on the North Hill we were the first to buy.....well, there was only one ground floor 3 bedroom unit, and only one week 52 and one week 1!
We were also the first people to stay in the new building when it was completed!

Do I ever regret the $$$$$$ we spent to get just what we wanted? NO!
But will I ever buy another tiemshare? probably not in the forseeable future as we find renting (or exchanging our spare off-season smuggs weeks occasionally) suits us best for our summer vacation.

"Roger" said:

There are frequently inquiries here on TUG about "What are my chances of trading into ...?" Sometimes the responses are "Pretty good," but other times the answer is "Perhaps during a shoulder or off season." Hmmm...

Resales might be available, but few and far between, and, not necessarily dead center when you want to travel.

Given the amount of money spent on luxury cars (which have a short life span), houses larger than anyone ever needs, specialty counter tops, etc., I see someone paying for exactly what they want on vacation and getting it now one of the more modest excesses.

Sure, resales often (usually) make sense, but I don't see anything terrible about someone not wanting to make working the timeshare market (both when they buy and then when they attempt to trade for what they really want) their favorite hobby and just wanting to buy exactly what they want.

Click to expand...

Well said.

If it's your money, you can spend it however you wish. If it makes sense To You to buy Resort X from DevA, go right ahead. If you're happy with it, then it's a Good Deal To You. Does it make sense? Doesn't have to.

I totally agree about the exchange game. There may be some winners, but most people playing the game do not win. Why play if you can bypass it?!?!

While I was standing on line at the Marriott Ocean Point I started chatting with a new Marriott Maui owner. I asked how much she paid for her week, and as nonchalantly as you please, she replied "only $80,000":ignore: I just said that's nice, and moved along. There is no way I would spend that much money on one week of anything, but if you have it, and you don't care how you spend it, I guess it was a good deal. My point is, "everything is relative". And if your relatives happen to have a lot of cash-- that helps too.

And some do not want to wait

We would all be surprised who has bought from the developer when a new timeshare has come on the market at a new location. I recall when the Newport Marriott was being built there were some of us (not me) in line to buy. Some just can not wait for the resale market to come along. These are usually high end units that we use every year. I have to admit, it has happened to me, and recently too.

"Roger" said:

There are frequently inquiries here on TUG about "What are my chances of trading into ...?" Sometimes the responses are "Pretty good," but other times the answer is "Perhaps during a shoulder or off season." Hmmm...

Resales might be available, but few and far between, and, not necessarily dead center when you want to travel.

Given the amount of money spent on luxury cars (which have a short life span), houses larger than anyone ever needs, specialty counter tops, etc., I see someone paying for exactly what they want on vacation and getting it now one of the more modest excesses.

Sure, resales often (usually) make sense, but I don't see anything terrible about someone not wanting to make working the timeshare market (both when they buy and then when they attempt to trade for what they really want) their favorite hobby and just wanting to buy exactly what they want.

Click to expand...

There's nothing at all wrong with paying too much for what you want, when you want it. If nobody did, the American economy wouldn't work.

However, when you purchase a timeshare, the entire premise is supposed to be, "you're locking in the cost of future vacations, so it's cheaper than renting".

I think there's a lot to be said for renting exactly what you want, when you want it, even a week 52 timeshare in Aruba or something. It makes more sense than spending $50,000 or more for the purchase plus $1000 or more maintenance fees every year. I mean, what are the odds any one family will spend more than 10 New Year's weeks over the course of their lives in Aruba?