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I'm reshuffling part of our TS portfolio. We've bought all ours resale, some at very good prices, some at ok and some more than I should have. For those that have bought and sold a few, do you have a target profit margin when you sell it or just to recover your purchase costs?
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We haven't resold any of ours, but I think you have to be realistic about what they will resell for. It's totally market-driven, so it doesn't much matter what profit you want to get--you'll get what the market will pay.
I watch the eBay prices, and I think one of ours would probably sell for more than we paid, and on the other we would probably lose 75 percent of what we paid. -
It depends on the real value of what I'm selling and how bad I want to get rid of it. It seems to me that this is not a great time to sell timeshares and that the prices may be heading lower. If I were regularly flipping timeshares, I would have a margin in mind.Comment
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I sell all timeshares at the market rate independently of what I purchased it for.Comment
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Sometimes you plan for a profit
and then the market changes, and you end up with a loss.
I have only sold a few units in this last year, as they market is so soft, and since I can rent them for a profit, I have been actively buying more units as rentals.
fwiw, GregComment
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Exactly...
[QUOTE=wackymother;203723] It's totally market-driven, so it doesn't much matter what profit you want to get--you'll get what the market will pay. [QUOTE]
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Well put. The marketplace does not know (or care) what a seller paid --- whether too high or very low, or whether from a developer or as a resale. The market value simply "is what it is" at any given time, completely irrespective of what the seller may have paid (or wants to get in next resale).Comment
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I guess I'm trying to determine what the market rate is. I know a number of people would say ebay pricing is the market rate. But what about all legitimate resales brokers out there along with the internet sites. Prices there tend to generally be higher than ebay prices. Is it fair to say market pricing is somewhere in between?Originally posted by BocaBum99 View PostComment
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What time frame would you use to define "soft".Originally posted by aliikai2 View Post
Greg, the one I'm thinking about selling does rent for a decent profit. It would take about 4 more years of renting to get the same net profit that selling it would give. How do you decide on when to sell vs. rent? I guess, if I sold, I'd have a bit more "play money" to buy another rental or two.
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EBAY is an auction site and sometimes people pay too much at auctions and sometimes too little (bargain). Market price is not easily determined- it actually is the point at what a seller will sell at and what a buyer will buy at. As a result market price is subject to continual change.Comment
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I would list it on the normal sites
at a price you would accept, then continue to rent it.
The market took a serious dive in pricing on most Non-hotel type units about 18-24 months ago, and has continued to be very soft.
Some weeks that I was selling for $2500 in 2004 and 2005 are now routinely selling for $500-700
The high quality ( BRANDED ) units seem to be down about 15-30% where the others have dropped 30-80% in the last 2 +- years.
Great for me aquirring rentals,
bad for anyone needing to sell.
jmho,
Greg
Originally posted by djyamyam View PostWhat time frame would you use to define "soft".
Greg, the one I'm thinking about selling does rent for a decent profit. It would take about 4 more years of renting to get the same net profit that selling it would give. How do you decide on when to sell vs. rent? I guess, if I sold, I'd have a bit more "play money" to buy another rental or two.Comment
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In my view, eBay successfully completed sales are a good indicator of the floor of the market. Naturally, one needs to discount the occasional auction where buyers and/or shill bidders ran up a price.Originally posted by djyamyam View PostComment
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To me, eBay is the sales venue of last resort. In my experience, it is the place where you tend to get the least amount for your timeshare. To think of it as the price floor is the right idea.
Brokers who specialize in a resort or resort group often times have a customer and referral base always looking to buy and sell. Those venues tend to command a higher amount than eBay since the risk of purchase is reduced and greater customer service is provided. If you hook up with the right broker, you may be able to net more using that broker than you could if you auctioned it off yourself. That is the ideal situation for a seller.Comment
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I agree. eBay folks are bargain hunters (me included). But eBay is the easiest way to track what people paid for which unit. The resale sites hardly ever give the actual resale price. I went looking for a Westin property in the fall and saw listings with brokers for $15-$25k. I ended up finding the property for $10k from a seller. I looked on eBay and one had JUST sold for about $10k so I knew I had a "floor." It was helpful information. TS prices are so out of whack with reality on most resale sites. And many have been listed for years!Originally posted by BocaBum99 View Post
I agree you'd get the most money from a broker specializing in that certain area. But you'd have to pay 10% comission, probably taking you right back to eBay prices. It's definitely a buyer's market right now. KComment
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Makes sense. I've done that on a few. The potential danger that I've noticed is becoming "attached" to it. The longer I own it (and have success renting it), the greater the danger.Originally posted by aliikai2
That's kinda what I saw and started to get more seriousOriginally posted by aliikai2
I agree but the "boss" has said no more until I get rid of a few and recover some capital investment.Originally posted by aliikai2
I think that if a person gets into this as deep as you, BB and others, you really do need to take the investment philosophy, which is: set your target return and when it gets there, sell and don't look back.Comment
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Ebay is such an erratic venue that I found it difficult to gauge the value of the timeshare group I wanted to purchase. Some auctions were selling for almost nothing, while others had heated bidding wars ongoing for virtually the same contract. I ended up doing my research and using a broker to get to the ownership level I wanted.
SamComment
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