Pricing a Lockout Unit

jlwquilter · #1 (**permalink**) 03-29-2008, 12:37 PM

Ok, say I am scoping out a 2 BDRM lockout.. locks into 2 1BRM units. I know I can get 2 exchanges out of it so assign, in my mind, half the MF to each trade, plus its own exchange fee. No problem.

But when buying the unit, should I be willing to pay a higher price for the lockout unit than I would for a non-lockout? Should I say, ok. I'd pay $2,000 for a 1brm at the very similar resort next door (trying to stay apples to apples) so I should be willing to pay about double that to get the equivalent of 2 1BRMS at this resort? Or is it normal to just say that 2 bedrooms are 2 bedroom for pricing and a lockout is a little bonus "for free"? I guess another way to say it is, is there typically a monetary value placed on having the flexibility associated with buying a lockout unit vs a non-lockout unit?

And yes, this is all tied to my active searcing for a new trader TS to buy.
Thanks!

lawren2 · #2 (**permalink**) 03-29-2008, 12:40 PM

Usually a 2BDRM lock-out would be a 1BDRM and a studio. I would pay a bit more for a lock off but certainly not double. My comparison would be against a 2BDRM non-lockout.

tonyg · #3 (**permalink**) 03-29-2008, 12:46 PM

I tend to agree with Lawren, but personally it makes little difference to me whether it's a lock-off 2br or a just a 2br.. The people who want more exchanges would favor the lock-off, but others like me prefer the extra size. If it is an II affiliated resort exchanging has a strong size component, so if you want 2 br. units you are less likely to get them with a studio or 1 br. deposit. RCI seems to be getting more size related lately as well.

wackymother · #4 (**permalink**) 03-29-2008, 12:50 PM

I can think of one resort where they have a lockout side and a non-lockout side--Marriott Manor Club in Williamsburg. The lockout side might be newer, too. But the lockouts there do seem to go for a bit of a premium.

To me it seems if you're buying to exchange, then the lockout would be a significant benefit and worth more, especially if the maintenance fee was the same for the lockout and the non-lockout.

How much more? I think in practice the price is the price, whatever the market will bear for that unit in that resort at that time.

ArtsieAng · #5 (**permalink**) 03-29-2008, 01:05 PM

I love lock-outs, and would be willing to pay more for them. Not double, but probably up to 15/20% more. They give me the option of using the entire unit if I need it, or locking it off, if it's only me and DH.

Also, if you're into doing daily searches, you can grab a two bdrm for the 1 bdrm, and the lock-out side, in many instances.

tonyg · #6 (**permalink**) 03-29-2008, 01:28 PM

I also came up with a non-Marriott resort I have visited that has lock out sections, but I actually like the old non-lock-off units better and the maintenance fee is less for them too.

Quote:

Originally Posted by wackymother

I can think of one resort where they have a lockout side and a non-lockout side--Marriott Manor Club in Williamsburg. The lockout side might be newer, too. But the lockouts there do seem to go for a bit of a premium.

To me it seems if you're buying to exchange, then the lockout would be a significant benefit and worth more, especially if the maintenance fee was the same for the lockout and the non-lockout.

How much more? I think in practice the price is the price, whatever the market will bear for that unit in that resort at that time.

randkb · #7 (**permalink**) 04-14-2008, 06:34 AM

The amount you pay would be more dependent on the timeshare you buy rather than whether it is a lockoff. There are lockoffs for sale on e-bay starting at a dollar.

mshatty · #8 (**permalink**) 04-14-2008, 07:47 AM

I would only offer what I am willing to pay, regardless of the unit configuration.

jlwquilter · #9 (**permalink**) 04-14-2008, 10:33 AM

Thanks everyone - this has been very helpful for me. I have some good food for thought now!

GrayFal · #10 (**permalink**) 04-14-2008, 12:30 PM

Quote:

Originally Posted by jlwquilter

Ok, say I am scoping out a 2 BDRM lockout.. locks into 2 1BRM units. I know I can get 2 exchanges out of it so assign, in my mind, half the MF to each trade, plus its own exchange fee. No problem.

But when buying the unit, should I be willing to pay a higher price for the lockout unit than I would for a non-lockout? Should I say, ok. I'd pay $2,000 for a 1brm at the very similar resort next door (trying to stay apples to apples) so I should be willing to pay about double that to get the equivalent of 2 1BRMS at this resort? Or is it normal to just say that 2 bedrooms are 2 bedroom for pricing and a lockout is a little bonus "for free"? I guess another way to say it is, is there typically a monetary value placed on having the flexibility associated with buying a lockout unit vs a non-lockout unit?

And yes, this is all tied to my active searching for a new trader TS to buy.
Thanks!

I would pay a premium for a 2BR lock-off that breaks into 2 1BR units as opposed to one that locks off into a 1BR/studio configuration and certainly more then a 'regular' 2BR.

I own at Fairway of the Mountains and a Starwood resort that break into 2 1BRs.
Many times, it is just 2 of us traveling, so I like the flexibility of have two 1BRs.....I also get an accommodation cert for both halves of the FWM so have 4 weeks of travel from one ownership.
The Starwood week during the Starwood preference period can see 2BRs with 1BR units - so that ownership can get me 2 2BR units.

With the Starwood weeks - the MF of the 'regular' 2BRs is less as well as the square footage of the unit - then the 2BR L/O.

I like having the option of using the whole 2BR or breaking it apart.

Marriott also seems to be jumping on the larger L/O option.
The 3BRs in Las Vegas L/Os into a 2BR and 1BR and at Shadow Ridge Palm Springs - the new sections 2BRs will L/O into a big and small 1BR similar to Starwood/Westin.

For a trader - get the L/O = 2 1BR for better bang for your buck!