How do you determine a fair and resonable offer price?

[where2next]

I've been considering a timeshare purchase for a while now and periodically do some research, track what's for sale, etc. We've just returned from a trip where we rented from an owner and think that we've found a good place for us to buy. My question is - how do I begin to figure out what is a reasonable price? The for sale listings are all over the place - there is about a 400% difference between the low and high listings I have seen. I've checked out the TUG sales database, but there aren't any recent sales posted there.

I've found one that looks good - the asking price is in the lower/middle range of what I've seen posted, but I have no idea if it is a fair price or not. I did do some research while visiting there last week and another owner shared with me what she paid (direct resale from developer). The listing I'm looking at is asking just over 50% of that amount. I would really like to pay about 20% - 25% less than the asking price, but in order to "negotiate" I would probably have to offer 30% - 40% less.

I'm a terrible negotiator and like to be armed with more real data so I know if I am in the ballpark or not. Is there anywhere I can find more current and reliable sales data?

[ArtsieAng]

Welcome to TS4M's

One way of getting a good idea of prices is checking out Ebay. Take a look at what this particular timeshare has sold for in the recent past. That should help you with what to expect to pay.


Good luck!!!

[GrayFal]

Originally Posted by where2next

I've been considering a timeshare purchase for a while now and periodically do some research, track what's for sale, etc. We've just returned from a trip where we rented from an owner and think that we've found a good place for us to buy. My question is - how do I begin to figure out what is a reasonable price? The for sale listings are all over the place - there is about a 400% difference between the low and high listings I have seen. I've checked out the TUG sales database, but there aren't any recent sales posted there.

I've found one that looks good - at is asking just over 50% of that amount. I would really like to pay about the asking price is in the lower/middle range of what I've seen posted, but I have no idea if it is a fair price or not. I did do some research while visiting there last week and another owner shared with me what she paid (direct resale from developer). The listing I'm looking 20% - 25% less than the asking price, but in order to "negotiate" I would probably have to offer 30% - 40% less.
I'm a terrible negotiator and like to be armed with more real data so I know if I am in the ballpark or not. Is there anywhere I can find more current and reliable sales data?

Welcome to TS4Ms
It would help us help u if you would share what resort, size unit and season/week u r looking out...we won't 'tell' anyone

But if someone purchased resale from the developer - u should be able to do 50-60-even 70% better - unless it is a resort that has a ROFR...

Another way to 'check' the real value is to check ebay for completed auctions - but remember that the same resort but different seasons can vary GREATLY.

[1950bing]

Do not give up on the idea of just renting. That does not tie you up on anything. You stay, you go, and you are done.

[where2next]

Thanks so much - I'm new so I wasn't sure how much I could post here.

Anyway, I'm looking at The Royal Sands, week 15 or 16. It is a 2 BR villa. The Royals have no ROFR and are RTU. This unit is in Phase 1 so it would be RTU until 2049. No guaranteed residual on Royal Sands, just your share of the sale price.

I spoke to someone there who bought week 15 direct from the Sands and paid $35k. I see listings ranging from $14k to over $44k! But the 14k listing isn't in a great location - so most of them are 18k and above. The two I am looking at are listing in the $20 - $22k range.

My research on TUG shows developer initial sales in the $17k range, so I'm guessing that is how much the unit went for in 2000.

What is a good range to shoot for?

[Jya-Ning]

Assume you are planning to use it yourself.

Try this way.

Purchase price (1+ opportunity cost) + MF * total year you will keep this < your cost * year used

So, if you are willing to pay rent for that resort say 1,300 per year. You will have 41 year of usage. And of these 41 years, you maybe able to go 80% of the time and you have no idea what to do with the other 20%. and you plan to hold it until end of RTU which with the hard to get rid of, it proably what your best assumption.

So you are looking at
Purchase price (1+ opportunity cost) + MF * 41 < 1300 * 41 * .8

And depends on how you plan to pay the purchase price, if the money is in CD, you use 3% yearly (I guess) which is about 2 times of purchase price.
or Purchase price * 3 + MF * 41 < 1300 * 41 * .8


Then you get the max you should pay.

Of course, people usually value the ownership. So you can increase the based on your feeling.

Than compare that with eBay complet price to see which one you like better.

Jya-Ning

[GrayFal]

Originally Posted by where2next

Thanks so much - I'm new so I wasn't sure how much I could post here.

Anyway, I'm looking at The Royal Sands, week 15 or 16. It is a 2 BR villa. The Royals have no ROFR and are RTU. This unit is in Phase 1 so it would be RTU until 2049. No guaranteed residual on Royal Sands, just your share of the sale price.

I spoke to someone there who bought week 15 direct from the Sands and paid $35k. I see listings ranging from $14k to over $44k! But the 14k listing isn't in a great location - so most of them are 18k and above. The two I am looking at are listing in the $20 - $22k range.

My research on TUG shows developer initial sales in the $17k range, so I'm guessing that is how much the unit went for in 2000.

What is a good range to shoot for?

Mexicondo / Royal Resorts / Cancun Mexico / Timeshares for sale

Excellent site for Royal resales - they have an oceanfront week 15 listed for under 22K - offer less and see what happens.

tonyg is our 'Royal' expert - hopefully he will chime in.

[BocaBum99]

Once you get into the timeshare market, you will quickly learn that there is no real market for timeshare resales. There are pockets of markets, but prices vary dramatically. I would never buy a timeshare that I didn't have a good feel for what other people are paying. I don't mean listing. I mean paying. That's because most of those listings you see for high amounts will never sell.

That said, once I figure out the market rate for a timeshare, I offer 25% less than that to ensure that I can sell it if I have to do so while having room for negotiating.

So, if you have determined that the market rate is $20000 for a unit you want, I would bid no more than $15000. And, find every owner you can to make that offer. Someone will take it.

If the resort has ROFR or very high closing and transfer costs, factor that into your cost basis before bidding. Figure out the rate at which the resort is exercising ROFR and find a broker who will work with you to ensure your offer passes.

[tonyg]

Chime was delayed by lunch. I've been watching the prices of Royals for a few years. Prices for the Sands have been very high and to no surprise- few of them sell. I sold a week 16 penthouse at the RC for just under 10k for a friend of mine a few years ago. I really don't like the Sands and the prices seem to be higher than they should be there. Weeks 15 and 16 are great weeks weatherwise and demand-wise, but also a high season for seabathers rash. A great deal of what a unit is worth is based on it's location, with beachfront being the top dollar. I don't think there is a timeshare week anywhere worth 10k or more. The best weeks at the Cancun Royals may be +/- 7 and 51/52. The site Pat mentioned, Mexicondo / Royal Resorts / Cancun Mexico / Vacation Rentals has a guide for selling prices at the Royals and you might want to take a look at that. I wouldn't suggest an initial offer over 7k for either week 15 or 16. Remember that the Sands is still rather new and resale prices will probably be on the decline there for the next several years and might just drop dramatically at any time now.

One more thing you might keep in mind is that the annual fee is around $ 800 right now and if it continues to grow as it has in the past, you may be looking at something around $ 1,500 in 2018. The residual is way to far away to even give much consideration to.

[where2next]

Thanks for taking the time to reply with such detail. I will take a look at the sites you mentioned. I'm guessing that some people just aren't serious about selling - they put it out there at an outrageous price and figure if someone comes along who wants to buy it - why not? I guess I could do that for my house - I would be willing to sell it for $1 million if someone wants it bad enough! LOL.

This has been very helpful - it seems the market is even lower than I had anticipated. I feel bad for the couple I met who just paid $35k for their week. Ouch!