Marriott Right of First Refusal

I am very interested in purchasing a fixed week at a very desirable ski location. The prices are at point that I seem to think are reasonable.

Concurrently, I am being courted by a Marriott Vacation Club sales representative. I mentioned to the agent about direct purchase of a fixed week from a private party and showed him some the listings at Marriott properties that are reasonable. IMHO mid 30's in Park City for fixed week 7 (Presidents week) is what is being considered and is fair. MVC points for this resort at this time is 6,900 points and selling 8,000 points for $77,000 ($9/point) with a $3500 annual maintanence fee.

Assume all of the above is true...your thought about MVC exercising a ROFR on a property such as this.

anthonyr187 wrote:

I am very interested in purchasing a fixed week at a very desirable ski location. The prices are at point that I seem to think are reasonable.

Concurrently, I am being courted by a Marriott Vacation Club sales representative. I mentioned to the agent about direct purchase of a fixed week from a private party and showed him some the listings at Marriott properties that are reasonable. IMHO mid 30's in Park City for fixed week 7 (Presidents week) is what is being considered and is fair. MVC points for this resort at this time is 6,900 points and selling 8,000 points for $77,000 ($9/point) with a $3500 annual maintanence fee.

Assume all of the above is true...your thought about MVC exercising a ROFR on a property such as this.

Many owners that have listings on the resale market think they can get back in a resale what they paid a developer.

As you may have noticed there are three week 7 Marriott Park City timeshares here on Redweek .... as you can see there are no takers.

However, if you are determined to buy a week at this resort then definitely buy on the resale market. When you buy from the developer you're then paying the developer's overhead costs = salesmen salary, advertising, presentations etc.

Thank your for your responses.

The salesman is a very good employee and is aware of the resale market. He stated with 100% certainty the Marriott would exercise it ROFR and would not allow a week 7 Park City to transfer for mid 30's when those units sold new for 80s. In addition, he has inventory that he is offering at $78,000 at the same location.

I tend to believe him....the selling agent gets commission either way...Marriott gets the unit at 30s and then resells at 80's...and the owner gets the unit sold at a price that he/she agreed to

The key is to get someone to sign the purchase agreement, put down earnest money...wait 60 to 90 days...only to be rejected....

I am not surprised that the resell market is difficult....

Understand that the sellers have various arsenal to gain your purchase. They prefer to play on your dreams. But also they have no problem on tugging on your fears. Know that $30,000 is a significant amount of money even for the developer. Just because it has the right of first refusal does not mean the developer will use it. An I'n a bad economy the the developer has to consider how to invest his money more judiciously. If you told me that it was on the resale for $5000,definitely the developer would be more likely to purchase.

I would go for the resale. The wait is worth the savings

anthonyr187 wrote:

Thank your for your responses.

The salesman is a very good employee and is aware of the resale market. He stated with 100% certainty the Marriott would exercise it ROFR and would not allow a week 7 Park City to transfer for mid 30's when those units sold new for 80s. In addition, he has inventory that he is offering at $78,000 at the same location.

I tend to believe him....the selling agent gets commission either way...Marriott gets the unit at 30s and then resells at 80's...and the owner gets the unit sold at a price that he/she agreed to

The key is to get someone to sign the purchase agreement, put down earnest money...wait 60 to 90 days...only to be rejected....

I am not surprised that the resell market is difficult....

IF they previously sold in the 80's then that was before the great recession hit (2007) .... things are completely different now in the world of timeshare .... many ultra nice timeshares weeks in ultra nice resorts can't even be given away in this economy, so what was sold pre-2007 can't be compared to what timeshares are selling for today .... I'm sure Marriott realizes that even if the salesperson doesn't (remember he's trying to make a huge commission).

If I were you I'd rent a week 7 from a timeshare owner and then you're not responsible for future rising maintenance fees, special assessments, ROFR and all the other burdens of ownership until you find a reasonable price on a resale (IF you must buy).

Also, if you contact an owner that has a week 7 for rent or for sale then you can negotiate the price .... don't just offer what they have listed .... you might be surprised at what an owner will take in this economy and should Marriott exercise ROFR on a resale then at least you would have tried .... I wouldn't necessarily believe ANY timeshare salesperson concerning ROFR ... he has no idea what Marriott would actually do.

Also, have you looked at the site below .... this is from Marriott:

www.marriottvacationclub.com/resales/buy-weeks.shtml

Thank you for this...I wish there was a 'like" or "thank you" button on some of these posts...You would have a zillion of them!

I am discussing all of the options with the sales agents...and he has presented the fixed weeks as option and can bundle with points too...

It seems that everone's prices are in line....resales on RedWeek for Mountside with Plat floating weeks are $16k to $50k asking price. Marriott's are 24K floating and $55k for fixed week 7. Asking on RedWeek for Fixed week 7 is $33k to $38.

Food for thought!

anthonyr187 wrote:

Thank you for this...I wish there was a 'like" or "thank you" button on some of these posts...You would have a zillion of them!

Well thank you anthony .... that's one of the nicest things anyone has ever said to me on Redweek forums .... good luck with your hunt .... I'm sure you'll come up with a week 7 sometime in the future as you seem to be diligent and you do your homework.

I have bought three Marriott TS on the resale market at pennys on the dollar of waht they are asking with no problem. If Marriott is trying to sell TS's at a property then they sure don't want to buy more TS's

Terence...could you please elaborate if you purchased platinum? Thanks for the information!

Did you have to continue to pay the annual maintanence fees for the Marriott property after you purchased them from Redweek?

I purchased a platinum at Marriott Barony Beach, Plat at Marriott Waiohai Beach, and a fixed week 50 (platinum) at Marriott Streamside in Vail. I paid well below the resale asking price from Marriott. Like someone else stated before, Marriott does not want to buy back the properties. If you get a good price on the resale market, buy. The only thing you will be missing is the opportunity to trade the week for Marriott reward points.

anthonyr187 wrote:

Terence...could you please elaborate if you purchased platinum? Thanks for the information!

garyt110 wrote:

Did you have to continue to pay the annual maintanence fees for the Marriott property after you purchased them from Redweek?

yes .....

I bought fixed Pres week at Marriott Mountainside for less than the mid $30's. They did not exercise their ROFR.

lincolnt3 wrote:

I bought fixed Pres week at Marriott Mountainside for less than the mid $30's. They did not exercise their ROFR.

What did you actually pay?

I have read this thread and others describing how the timeshare companies have been doing all they can to discourage people from buying on the secondary market and read the shortsighted, misguided comments from people trying to defend them. First off, who are these people trying to sell their properties, they are most likely customers of these timeshare resorts that bought from the developers in the first place. No property makes it directly to the secondary market, it had to be bought from the developer first. He made his money and if he was smart he would do all he could to see his product held its value once it was sold. Instead, the developer is doing all he can to see the product he is selling you becomes worthless the minute you sign on the dotted line! Every timeshare owner needs to go to sales presentations every time they are offered and bring this up LOUDLY in a room full of prospective customers and let the developers know that we know they have screwed us and will screw these people instead of helping keep the value of their product up.

So try and make the purchase through re-sale if they ROFR it then so be it.

FYI. I purchased a marriott maui ocean club resale. I was also told marriott would never let that go at the price i paid 1,000 bucks. They let it go and now I own it.

christopherl103 wrote:

FYI. I purchased a marriott maui ocean club resale. I was also told marriott would never let that go at the price i paid 1,000 bucks. They let it go and now I own it.

Christopher, you may have bought between 2008 and 2010 when they were letting everything go as they were prepping for the new points program and had lots of people giving up their timeshares. Marriott could not afford all of the maintenance fees as they were financially strapped too so you were lucky. Now they toss all of that inventory into the Trust so that points owners can have access to desirable weeks. A Maui Ocean Club unit will more than likely be kept by Marriott as they will probably exercise their Right of First Refusal. I do agree thouth that one should just go ahead and try to buy and if they get lucky great. If Marriott uses ROFR, so be it. Look elsewhere.