Buying from internet auctions

Dear All,

I see timeshares for sale on the most famous internet auction site. These are selling for very low price ($1.00 in some cases). The closing fees are spelled out clearly, as are the annual maintanence fees. It also says that the timeshare is paid to date on maintanence fees. What is this about? Is it safe? Why would the timeshares be selling at that price?

Many thanks. wen

L. C.

lc68 states / asks, quoted in pertinent part:

>> I see timeshares for sale on the most famous internet auction site. These are selling for very low price ($1.00 in some cases). The closing fees are spelled out clearly, as are the annual maintanence fees. It also says that the timeshare is paid to date on maintanence fees. What is this about? Is it safe? Why would the timeshares be selling at that price?<< ======================================

Many of these dirt cheap timeshares on eBay (no reason to avoid specifcally identifying the site by name) are being sold by businesses often called "Post Card Companies" by some people. Why they are sometimes called PCC's doesn't much matter, except for you to be clearly aware that they are businesses which have actually already been paid several thousand dollars by someone to just take a "less-than-desirable" timeshare "off their hands". If the PCC then sells that timeshare for just a dollar on eBay, they have STILL made that previous several thousand dollars ALREADY. If they sell it for more than a dollar, then that's just plain additional "gravy". You will only VERY rarely see anything that's really popular or desirable or of prime value in timeshares sold in this particular manner.

Also, keep in mind that these PCC's (who often each have dozens of eBay listings under several different seller names for the exact same business entity) often just "cut and paste" ad information from one ad over to another. In so doing, many factual errors are created (maybe innocently, maybe not). Finally, many of them also insist upon using "their own" closing company --another flag to proceed very carefully. If I buy a timeshare, I want to choose and hire an objective third party closing company in the middle of the transaction. Foxes running the henhouse is not something I want to pay for, personally.

Don't get all starry eyed over $1.00 eBay prices. Junk is still junk, even when cheap.

My recommendation is to do your homework, figure out exactly what you want to buy, where you want the timeshare to be where you will actually use it, whether you want a fixed week or a float week, and what is an acceptable annual maintenance fee cost for you. Also, PLEASE don't just assume that you can just buy and later "exchange" a low value, low demand timeshare for something much better -- that's unlikely to happen. Don't even LOOK at timeshare ads until you first clearly establish this baseline information above in your mind.

At that point, go looking in resale ads posted on RedWeek, TUG, myResortNetwork.com., where much higher quality offerings by private (and some business) entities are offered. Only as a last resort do you want to have to undertake the time and effort to sift through the junk timeshares and/or factual misrepresentations so prevalent (in my opinion, anyhow) on eBay. A "bargain" is not a "bargain" if you ultimately end up with something worthless to you -- and sending you annual maintenance fee bills each and every year until you can be the next one to "unload" this "bargain".......

This is just my own personal opinion and advice, offered in good faith to hopefully help you to avoid a big mistake which is easy to make --- but then very difficult to correct.

Good luck --- and Caveat Emptor (Buyer Beware).

You can get some very good deals on Ebay timeshare auctions. Most of the $1.00 timeshare auctions are being sold by postcard companies that have gotten timeshares from people just wanting to get rid of them.

I have seen some very nice gold crown resorts on Ebay for $1.00.

R P.

lc68 has observed, quoted in pertinent part: >> The closing fees are spelled out clearly, as are the annual maintanence fees. It also says that the timeshare is paid to date on maintanence fees. << ======================================

To elaborate further on my earlier reply, many times the PCC's who list on eBay will "cut and paste" content from one ad over to another. In that process, info which may (or may not) have been correct in one ad then becomes entirely wrong when transported by "cut and paste" over to another ad. Let me give you a very specific example, for an eBay listing which I saw last week for a facility I'm well familiar with (Perennial Vacation Club, to be exact). I could probably find the exact link for you to see the (now closed) original auction ad for yourself, if you really wanted:

1. eBay listing openly stated "Gold Crown", but no PVC facility is (nor has any EVER been) rated "Gold Crown".

2. eBay listing said "deeded ownership". It's NOT . PVC is a "right to use" membership (no deed).

3. eBay listing showed a significantly incorrect maintenance fee amount --- not even close to the actual figure.

Yes, info was all "spelled out" in the ad ---but so much of the info was inaccurate that "misspelled out" might be a more appropriate description. This is just ONE ad I happened to recently become aware of from a forum posting on another site, but I've seen dozens of others with grossly inaccurate information within the ad.

There may be occasional (extremely rare, in my opinion) legitimate "bargains" on eBay, but please do NOT accept any eBay PCC ad content as being true, accurate or correct just because you see it in print in multiple colors --- chances are very good that there are more errors than colors in that eBay ad. Whether it's innocent oversight or deliberate deceit, I don't know (nor do I care --- wrong info is still wrong info). Check and independently confirm every ad claim for yourself if you step into the murky waters of timeshare sales on eBay......

CAVEAT EMPTOR (Buyer Beware)

This was WONDERFUL information, and I thnak you deeply and sincerely for taking the time to explain things to us. We are so new at this and your insight was very helpful.

Don't get all starry eyed over $1.00 eBay prices. Junk is still junk, even when cheap.

This is just my own personal opinion and advice, offered in good faith to hopefully help you to avoid a big mistake which is easy to make --- but then very difficult to correct.

Good luck --- and Caveat Emptor (Buyer Beware).

L. C.

lc68 has very kindly offered: >> This was WONDERFUL information, and I thnak you deeply and sincerely for taking the time to explain things to us. We are so new at this and your insight was very helpful. << ======================================

You are very welcome. I hope that some of the info provided helps you to proceed with a bit more knowledge AND with plenty of caution.......

Regards, Ken

As soon as a PCC puts a good unit ( and I agree with jayjay, some are good, many are non- converted (to points) Wyndham / Fairfield weeks, or places still closed by storm damage ( Wyndham Santa Barbara in SE Fl) the T/S renters scoop them up.

But also, the maintance fees might be too high, and add pending assessments.

You can find something, but the pros will usually bid up higher than a dollar.

I can tell you a place that was a SC, also a SSL (Superior Small Lodging) that is oftem $1.00 a week. and that is Daily Management Companies Silver Seas....adjacent to the St Regis and Marriott Beach Place.

High spring red time one dollar. Across A1A from the sand....but maintance fees for a one bed one bath sleep 6 is approx $700 a week.

Another group of Daily resorts in Weston Florida ( two with Gold Crown and one with GC & 5 Star are also listed....but they also have tremendous maint fees....and are always listed as rentals for $329.00 a week on RCIs government and affinity sites. ( That $329 is still a lot less than the maint fees)

( The Silver Seas is rarely on the $329 a week lists.)

Also, most units offered for $1.00 in Hollywood, Delray, Deerfield Beach and Palm Beach County are possibility good buys.

Stay away from the Hollywood Beach Resort (Ramada). It needs so much work.....and is so old....1920's that if they want to fix it up...the assessments now would be astronomical. ( I saw some rooms I might consider a health hazard)....

So, Ken is also right..... need to do your homework....

Kenneth K.

I agree that performing due diligence and homework before bidding is necessary whether it be a $1.00 timeshare or a $10,000 timeshare.

As kekouri said, you do have to consider maintenance fees, however, and even though I don't condone postcard companiess, there are many people that DO buy the $1 timeshares on Ebay as is evidenced on other forums.

R P.

jayjay wrote:
I agree that performing due diligence and homework before bidding is necessary whether it be a $1.00 timeshare or a $10,000 timeshare.
As kekouri said, you do have to consider maintenance fees, however, and even though I don't condone postcard companiess, there are many people that DO buy the $1 timeshares on Ebay as is evidenced on other forums.

Jay- If you watch the names of the bidders (if open), you can see many names that are listed on the tug, redweek, myresortnetwork sites that are big time renters.

They buy for less that 250 and have learned to figure out how to rent their weeks (like on here) for a (hopefully) bit of return over the maint fees.....or they buy cheap FF/Wyndham points and add it to their collection ( or other point systems) and get a good week and then rent.

If no rent. they post the week on the 45 day distressed boards for $300 a week and get something back (maybe).

I still have no idea why those Weston weeks have such a hard time with resales. Some lie, and say Ft Laud, (hoping the mark will bite,) but the ocean is still over 20+ miles away.

Kenneth K.