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The Secret Of Timeshare Auctions By Kevin Co Timeshare auctions are tempting. You see great timeshare properties at great prices on various Internet Auction sites. You want a timeshare, but you're nervous about bidding. You have heard "Internet Auction Horror Stories" and want to avoid a bad experience. But there's good news.
Timesharevalues.com not only sells timeshares, but it also purchases many through the Internet. We at Timesharevalues.com buy properties, office supplies, and personal items through Internet auctions. We have seven tried-and-true tips for Internet auction success:
1. Start a Dialogue with the Seller as Early as Possible You want to know if you can work with the seller. Does the seller respond quickly? Does the seller give complete information? Remember, some people don't communicate well in written form. Just because they have some typos and poor grammar, don't rule them out. Responsiveness, tone, and information are key.
There is also nothing wrong with a phone call. Savvy bidders call us all the time.
2. Make Sure you Have all the information about the property you are interested in. You should know:
* The name and location of the property. * How many bedrooms and bathrooms does the unit have? * What exchange company(s) does the resort trade with? When is "first use" for the winning bidder? ("First use" is the earliest time the winning bidder can use the property.) * What is the annual maintenance fee? Is it paid, and does the seller want to be reimbursed if first usage is this year? * What are the sizes of the beds in the unit? * Are there any special assessments this year? Are any expected next year?
3. Set Your Budget - and Keep to It Do some research and see what similar properties sold for recently. Determine how these properties are selling on the resale market. A good place to find this information is http://www.timeshares.com, the leading portal for the timeshare property industry.
Find a reliable auction site and register. Check our marketplace section for recommendations: http://www.timesharevalues.com/Marketplace/auctions.htm. Find a property you're interested in, then enter your bid based on your budget amount. Remember, the auction sites will increment your bid automatically. If there is little competition, you probably won't reach the upper limit of your bid. In popular auctions, you may be outbid, and most sites will notify you via email.
In the auction world, there is no better feeling than winning at a bargain price. On the other hand, there is no worse feeling than winning at a price higher than you wanted to pay.
We have found that properties auctions go in cycles. Every time we sell property in Hawaii, for example, we are contacted by Hawaii owners looking to sell. Once a new property goes up for auction, other owners at that resort get bold and try to sell theirs.
The moral: There will always be other properties; it pays to be patient.
4. Determine Payment and Owner Transfer Methods Before the Auction Ends The range of payment services has grown dramatically. Email your seller before the auction ends to understand the choices you have. If the seller is vague or does not offer you a choice, you should be careful.
You want to know if the seller is just preparing a Quit Claim deed or a Full Warranty deed. The seller may not know the difference, especially if he or she is the owner.
A Quit Claim deed means the property is transferred to you "as is". Anything owed is your responsibility. A Full Warranty deed states the property is free and clear upon transfer, and the previous owner will pay any fees, liens or encumbrances that are discovered later.
If the seller is an owner, he or she may not have a good idea about how to close the property. Feel free to email us for closing options you can use in your timeshare purchase or share with the seller.
5. Check Out the Seller's Transaction History All major auction sites provide a rating system for both buyer and seller. For example, on Ebay the rating is the number in parentheses next to the seller's name. If you click on the number you will get a history of that seller's transactions and feedback from Ebay members who have bought from that seller. TimeshareValues.com's feedback is a little under 350 emails. We have more than 370 positive comments, but comments from the same person are only counted once.)
You
are looking for a seller who has consistently generated positive feedback. In the case of Ebay, we have had two negative experiences and (number) positive experiences in almost three years of selling goods on Ebay. In both instances, the buyers were uninformed and tried to get out of a purchase they should not have made. Getting negative feedback is sometimes out of the seller's control, but a consistent pattern should be a warning flag.
6. Determine Your Objectives BEFORE you Bid Ask yourself:
* Is this your first timeshare or are you adding to your portfolio of property? * Will this be a property you actually intend to visit, or do you plan to trade the property after you buy it?
A first unit - we call them "landmark properties" - should be in a location that you plan to visit three times every four years. You would tend to bid higher for this property, and you may be concerned about the annual maintenance. The location and unit size and amenities are important to you.
A trader property - one you want for its trading value - may have a variety of features. You can be more flexible, and you can control your bidding a little more. You are looking for value in both the purchase price and maintenance fees.
7. How to Win When You Lose Imagine you were just outbid on your dream timeshare in Kauai by $10. You were ready to bid and the auction ended. It happens all the time. Last minute bidders "snipe" your position, leaving you more than a little frustrated. But there is hope.
Your first step should be an email to the seller right after the auction closes. Tell the seller very clearly you would like to purchase the property in the event the winning bidder does not complete the sale.
Sometimes the seller has multiple timeshare weeks at the same property, and can sell you another block of time immediately.
Winning s sometimes get cold feet, especially those who didn't use seven tricks in this article. Sellers have no desire to keep offering the same property at auction. Solve their problem and get a timeshare!
Make sure you get agreement on a property's price when you contact the seller. If the property is popular (more than 20 bids) you might want to use the winning bid amount. If the property has fewer bids, you can use your last bid amount. Most negotiation books tell you to never throw out the first price, but we believe this situation is an exception. You are a backup buyer, so you have to make the seller feel confident in contacting you.
It is not considered "good form" to offer more than the winning bid. We had a second place bidder do this recently. It defeats the purpose of an auction, and if they have more than one piece of property, you would have overpaid! Remind the seller he saves money and time dealing with you as a backup buyer.
Summary We admit it. We are biased when it comes to timeshares. They're great ways to travel.A comment we heard a few years ago from a veteran timeshare owner rings true today:
"Since I bought a timeshare I consider roughing it a hotel room stay."
So do we. A well-maintained timeshare will spoil you very quickly.
Auctions are the best way to purchase a timeshare property They let the buyer focus on the best property for their needs and at a price they control.
Our seven tips should help you bid with confidence, and have fun at the same time. Good luck!
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