Help:Eight Reasons NOT to buy Resale

chum94555 · May 13, 2009

Hello, I am seeking feedback from fellow HGVC point owners who have bought RESALE membership in the recent past and their experience.

I have rec'd the following reasons as to why I should not buy Resale from Developer's sales agent. I have asked my Resale person for their feedback but will appreciate your as well

I am particularly not clear on their points, 5, 6 , 7 and 8

ANY feedback based on your experience is appreciated

Thanks
ks
______________________________________________

Reasons you need to be aware of buying from a third party;

1) Back Maint. fees & taxes ( you will be responsible)
2) Divorce situation (tie up for months)
3) Should have an Attorney to make sure title free & clear
4) Not eligible for the Elite program *** See attached
5) Can't upgrade with 100% equity
6) Not eligible for ongoing promotions
7) Not a member of club or RCI (must join each at an additional cost)

8)We are a point base program (do you know if points are available at point of purchase)

ecwinch · May 13, 2009

This was not on the list:

9) You have too much money
10) You feel it is your patriotic duty to help the depressed timeshare industry
:whoopie:

PigsDad · May 13, 2009

If you work w/ a reputable broker, points 1,2,3 and 8 are a non-issue. Those points just come down to knowing what you are buying.

Point 4: true
Point 5: true, but "upgrading" is just another purchase from the developer. If resale works for you, why would you purchase from the developer in the future?
Point 6: I don't know of any "promotions" that don't apply to resale owners. I suspect this is BS.
Point 7: This is blatant BS. Resale owners are full HGVC members.

The only real downside to buying resale is that your purchase will not count toward Elite status. Only you can decide if the Elite benefits are worth the extra $$$$.

Kurt

natarajanv · May 13, 2009

PigsDad said:
If you work w/ a reputable broker, points 1,2,3 and 8 are a non-issue. Those points just come down to knowing what you are buying.

Point 4: true
Point 5: true, but "upgrading" is just another purchase from the developer. If resale works for you, why would you purchase from the developer in the future?
Point 6: I don't know of any "promotions" that don't apply to resale owners. I suspect this is BS.
Point 7: This is blatant BS. Resale owners are full HGVC members.

The only real downside to buying resale is that your purchase will not count toward Elite status. Only you can decide if the Elite benefits are worth the extra $$$$.

Kurt

I completely concur with Kurt. I recently purchased through Seth and everthing went smooth. I knew exactly how many points were left on the account or any unpaid fees (through ESTOPPEL) and also got the TITLE insurance for a peace of mind.

timeos2 · May 13, 2009

Don't get railroaded

If you purchase through a quality resale broker or with a reputable seller (on Ebay, RedWeek, etc) and get what you bargain for the value for your dollar is much better than buying retail. No, you don't get to be "elite" but you are paying dearly for that "privilege". Seth was mentioned in a reply and he has a sterling reputation for presenting the facts (not commissioned sales weasels hype and half-truths) regarding retail vs resale. You will be informed and can make the best decision for YOU if you take the time to research and learn. I would NEVER buy retail as the majority of the cost difference between resale & retail is marketing overhead and sales expenses I simply don't care to pay. They buy me nothing and have no value when I wish to resell.

ecwinch · May 13, 2009

timeos2 said:
I would NEVER buy retail as the majority of the cost difference between resale & retail is marketing overhead and sales expenses I simply don't care to pay. They buy me nothing and have no value when I wish to resell.

John highlights an interesting point about the *elite* priviledges you are paying the premium for. Since they are not transferable, does that not hurt your resale value?

So you are paying a premium with no hope of recouping that premium during resale. That is the question to ask that Developer sales agent. Hopefully he has not represented that this is an investment and you will be able to resell in the future and get a large portion of your money back. The previous issue negates some of that potential.

AwayWeGo · May 13, 2009

Nothing That The Timeshare Company Sells At Full Freight Is Worth The Money.

That specially goes for the extras like VIP & Platinum Priority & Elite Status, etc. -- the benefits they provide are worth only a small fraction of the major big bux the timeshare company gets for them.

Plus, there is no such thing as a new timeshare. All timeshares are used-used-used by the time the owner shows up & checks in, because other people will have stayed right there in your unit before you ever get there. Accordingly it makes no sense whatever to pay a "new" price for an item that is plainly not new any way you shake it.

As for potential pitfalls relating to back fees, divorce issues clouding title transfer, etc., just do sensible checking in advance & go with a reputable timeshare closing services agency & you'll do fine.

Buy timeshares resale. Save thousands of dollars.

For the money you save in buying timeshares resale, you can spend regular money on the things that full freight buyers get via VIP & Platinum Priority & Elite Status, etc., & you'll still be way, way ahead of the game financially.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.

alwysonvac · May 13, 2009

Déjà vu

LOL, they must have a script :hysterical: See this old 2008 thread - http://www.tugbbs.com/forums/showthread.php?t=74675

Don't worry, the only thing you don't get with a HGVC resale is Elite status (which you need at least 14,000 HGVC points to qualify). They're just trying to use scare tactics to get you to buy directly from them. Sadly, some folks who work in the timeshare industry behave like sleazy used car salesmen (no offense to used car salesmen). If their lips are moving, you know they're lying.

I also suggest using one of the TUG recommended HGVC resale agents to ensure everything is cared for during the transfer - http://www.tugbbs.com/forums/showthread.php?t=88428

UWSurfer · May 13, 2009

I bought both of my HGVC weeks through Seth and have been enjoying full HGVC benefits for several seasons now. I'm not elite and am very happy with the savings that its not an issue...and frankly really shouldn't be.

HGVC is a great system to buy into resale and I'm sure that alone makes it difficult on their sales staff for the 0.5% of those they pitch to who know this.

chum94555 · May 13, 2009

Lost of deposit

One other thing that was in the text portion of their email I forgot to post was

If HGVC exercises their right to buy, I loose all the deposits

Is this true?

Bill4728 · May 13, 2009

chum94555 said:
One other thing that was in the text portion of their email I forgot to post was

If HGVC exercises their right to buy, I loose all the deposits

Is this true?

With almost every seller, if HGVC takes the unit with ROFR, you will get your complete deposit back.

Bill4728 · May 13, 2009

Look, you're clearly worried about buying resale. I can understand that.

Since HGVC will buy back most low ball offers, with your concerns, I wouldn't think about buying from an unknown seller. Use one of the three or four highly recommended HGVC resellers (like Judy K and/or Seth N) and you will have a completely trouble free purchase. These guys are true pros and they will make sure your resale goes smoothly.

Blues · May 13, 2009

chum94555 said:
If HGVC exercises their right to buy, I lose all the deposits

Is this true?

Not if you're dealing with a reputable broker and/or escrow agent. But the process for refunding your money in this case is something you should clarify before you make an offer. In my case, the escrow agent didn't even request any deposits until after getting the Estoppel from HGVC indicating no ROFR.

AwayWeGo · May 13, 2009

Are You Talking R. O. F. R. ?

chum94555 said:
One other thing that was in the text portion of their email I forgot to post was

If HGVC exercises their right to buy, I loose all the deposits

Is this true?

Not sure of the context -- but if they're talking about a money deposit you pay toward a resale purchase & then the timeshare company buys the timeshare out from under you via ROFR, then that's bogus. You get your deposit back in that event. The timeshare closing services agency takes care of that. Just make sure all the money you pay -- deposit & all -- goes to the independent 3rd party timeshare closing services agency, which takes care of sorting it all out when the dust settles. Don't send any money directly to the seller.

ROFR = ROFL (but that's another story).

-- Alan Cole, McLean (Fairfax County), Virginia, USA.

chum94555 · May 13, 2009

Thanks to all the one responded. I am working with Seth and I learned of him from the Group. His response is pretty much same as what all of you have said.

Thanks I will march on and keep all of you advised on how my purchase went

Pl keep any tips you may have coming

ks

Talent312 · May 13, 2009

Do not let yourself be bamboozled by the TS sales-creeps.
Next, they will tell you that you'll be waterboarded by the CIA.

HGVC is one of the best when it comes to treating their resale buyers equitably.
You get the same seat at the table as anyone who bought direct, save only elite status.

UWSurfer · May 13, 2009

Talent312 said:
Next, they will tell you that you'll be waterboarded by the CIA.

Well, that part is true at least, administered by the sales mgrs in the back room. CIA = Com'on, Invest Already!!!

rmschiltz · May 13, 2009

Resale will save you $30,000 or more in my opinion. We went to the Orlando pitch and they tried to sell us 7,000 points for $37,000. We bought 5,000 resale for $5,200. I know there are those on here that enjoy their elite status, but I can do a lot with that extra $30k.

jaes · May 13, 2009

Overlooked ELITE benefit.

I had hoped the discussion would help "chum94555" make an informed purchase (i.e., resale or from developer). However, much of the information supplied seems to be slanted and would lead one to consider purchasing a resale. There is one benfit that is exculsive to Elite owners that seems to have been conveniently omitted. For "chum94555" and others to make a fully informed decision, I believe they need to be informed about all of the benefits open to Elite owners. Here is certainly one such benfit that needs consideration: On page 137 of the 2009 Club Member Guide, under a column entitled "ELITE" is a list of benefits provided only to Elite owners. ---The discussion, thusfar, has not mentioned the following benefit: "Elite designated door key." ---Jaes.

chum94555 · May 13, 2009

Yes Point for point, I find we save 60 % by buying from Resale market and from money we save, I can surely give myself title of Mr Elite :-0

ks

Talent312 · May 13, 2009

jaes said:
---The discussion, thusfar, has not mentioned the following benefit: "Elite designated door key."

For less than $10.00, one can buy a package of gold-colored labels, put them in your printer, and produce 100 stickers that say, ELITE, then at 9-months out, reserve Kingsland, and you can rub elbows, AS IF.

... Not that there's anything wrong with that.

jaes · May 13, 2009

Better than simply calling yourself "Mr. Elite," which hides your exclusivity, I just visited a website that offers personalized ID Tags---a basic, leather tag, big enoungh to hold a resort's electronic key, = $9.20. ----Now get this, for a small additional charge, you can have gold embossed letters afixed thereto. I would suggest the gold embossed words: "Elite Supreme Being." ---Hope this is helpful. ----Jaes.

kool_kat · May 13, 2009

I also think you need to consider how many points you think you want to eventually own...if it is not going to be at least 14,000 than you wouldn't be elite even if you did by from the developer. Then there is absolutely NO difference between developer and resales (except for the thousands of dollars)....

Talent312 · May 13, 2009

kool_kat said:
I also think you need to consider how many points you think you want to eventually own...if it is not going to be at least 14,000 than you wouldn't be elite even if you did by from the developer. Then there is absolutely NO difference between developer and resales (except for the thousands of dollars)....

I wish that I had the time to use 14K points, but then...
Enuff of my vacations have been off the HGVC-plantation, that I haven't found my relatively meager account to be a limiting factor.

jehb2 · May 16, 2009

chum94555 said:
1) Back Maint. fees & taxes ( you will be responsible)
2) Divorce situation (tie up for months)
3) Should have an Attorney to make sure title free & clear
4) Not eligible for the Elite program *** See attached
5) Can't upgrade with 100% equity
6) Not eligible for ongoing promotions
7) Not a member of club or RCI (must join each at an additional cost)

8)We are a point base program (do you know if points are available at point of purchase)

All I can say is is that their best shot? If so it's pretty lame.

Help:Eight Reasons NOT to buy Resale

chum94555

ecwinch

PigsDad

natarajanv

timeos2

Tug Review Crew: Rookie

ecwinch

AwayWeGo

TUG Review Crew: Expert

alwysonvac

UWSurfer

Tug Review Crew

chum94555

Bill4728

Bill4728

Blues

TUG Review Crew

AwayWeGo

TUG Review Crew: Expert

chum94555

Talent312

TUG Review Crew: Veteran

UWSurfer

Tug Review Crew

rmschiltz

jaes

chum94555

Talent312

TUG Review Crew: Veteran

jaes

kool_kat

Talent312

TUG Review Crew: Veteran

jehb2