Posted by Steve-WA on March 06, 2003 at 14:24:34:
you can trade your TS time in your location to someone else for their location. And different locations have a different trade value. And Hawaii has the highest trade value. For instance, you could trade, even up, a week in Hawaii for two weeks in Europe. Check with a TS company. IF and only if you want the vacation space. I wouldn’t do ANYTHING with a TS for investment.
IMHO
Buyer wants to give me 2 Time Shares in Lieu of - Posted by PattyVegas
Posted by PattyVegas on March 06, 2003 at 12:38:00:
I have a house for sale and I am asking for 12K down. A self employed couple want to purchase and asked us if we would take 2 Time Shares for the Down. One is in Kauai 1 week every other year and 1 in Palm Springs 1 week per year. I believe they are both 1 bedroom. She says she bought them 2 yrs ago for 10K and 15K well that means nothing to me. However I am trying to put a value on them but its confusing. I looked up resales and found them for sale in Palm Springs 2500 upto 5000 and Kauai from 3250 upto 12K. These also have maintenance fees of about 1k year for both. So I am not sure I want there problem.
Also I certainly would not take them for the full 12k as I want them to come up with CASH Mostly because I want to put a cushion in Escrow in case they default and also without cash out of there pocket I don’t think they will have the true Homeowner feel. So I am thinking of putting a value on these Timeshares and then the balance in cash.
Any Thoughts on how to value these. They are on Golf Courses so we might want to hold onto them for personal use.
Thanks
Patty
Probably ZERO value - Posted by John Behle
Posted by John Behle on March 06, 2003 at 16:16:08:
The problem with most timeshares is that the yearly maintenance fees equal or in many cases exceed what you might pay for a comparable rental for the time. The fees range in the 50-150 per day area and they are open ended - they go up substantially. Pay the fees or lose the unit. Much of the time you can have a hard time even renting it out for enough to pay the yearly fees. So…it can be NEGATIVE equity and negative cash flow.
So what value or equity does the timeshare have??? Very little.
Another problem with timeshares is resale. You end up competing with the company that originally sold it that still has units to sell or has taken some back (because of the high fees). If they did have good sales on a unit, they’ll do another next door and so on.
Connundrum - Posted by Shawn J. Dostie
Posted by Shawn J. Dostie on March 06, 2003 at 15:21:25:
Great advise from these guy’s. How about another twist. You don’t say anything about what the price of the property is, But say you are trying to net 100k for a property. If you make your property 112k w/ 12,000 allowance on the T/S’s you would have 10% down m/l and still get your net plus have nothing in the timeshares. With 10% down, you might be able to get all but the biggest credit cripples approved and completely cash out. To get a value on timeshares, go to ebay and Century 21 has a site dedicated to nothing but timeshares, although I am not certain as to the web address.
Good Luck,
Shawn(OH)
Re: Buyer wants to give me= - Posted by Nate(DC)
Posted by Nate(DC) on March 06, 2003 at 14:56:54:
Go to www.stroman.com - they resell time shares, and could probably give you a good idea of the actual market value of the shares.
NT
time shares are one step above junk bonds… - Posted by David Krulac
Posted by David Krulac on March 06, 2003 at 14:33:27:
and often sell for about 20-25% of the initial costs.
If they paid $25,000 for these time shares I WOULD NOT be crediting them with more than $5,000 to $6,000 downpayment. Try to sell a time share sometime.
David Krulac
Central Pennsylvania
Timeshares - Posted by -Jimbo-
Posted by -Jimbo- on March 06, 2003 at 13:03:02:
Patty,
That’s an interesting situation. Depending upon the
timeshare company, it might be worth looking into
more. Usually, however, it is not. Make some calls
to people who buy timeshares and see what they are
willing to give you for them. Only accept them if you
vacation each and every year at those locations -
sometimes you can rent them out to others to cover
your maint. fees.
Your buyers definately need a majority cash down - go
low offer with the timeshares or take them out of the
deal. They will/might be a problem in the future if
YOU had them.
Good luck!
-Jimbo- “Don’t be afraid to take a big step when one is indicated. You can’t cross a chasm in two small step.” - David Lloyd George
P.S. I might give $2,000.00 for the pair NT - Posted by Shawn J. Dostie
Posted by Shawn J. Dostie on March 06, 2003 at 15:23:12:
