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Builder buying up older unit

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armrecsys TUG Member Posts: 168 From: claremont,ca Registered: Jan 2002	posted 05-24-2005 15:32 Hi, can some one tell me why the builder at Lawrence Welk, Esc. is buying up the older units. What are they trying to do. I would like to buy a older unit , but I was told by a resale office that the builder was buying up the older units keeping the price highter? Can you one shad some information on this commet. Linda IP: Logged
allenh91801 TUG Member Posts: 2 From: Duarte, CA USA; Pono Kai Resort HI Registered: May 2005	posted 05-24-2005 16:05 On the same note, does an owner who buys resale here get day use privileges? And does the resort have a right of first refusal? Thanks, Allen IP: Logged
nthc TUG Member Posts: 1104 From: VA Registered: Aug 2002	posted 05-24-2005 16:47 The reason would simply be because the demand for new sales exceeds the developers ability to build. They will pay you money and then turn around and make more selling to new customers. IP: Logged
LeeB TUG Member Posts: 1174 From: San Jose, CA, USA Mountain Retreat, Makai Club, Winners Circle Registered: Dec 2000	posted 05-24-2005 17:31 That or maybe they can combine the weeks to whole condos and sell them for a big markup. ------------------ Lee Boylan IP: Logged
dougp26364 TUG Member Posts: 2125 From: Wichita KS owner: Polo Towers/ The Villas at Polo Towers/ Marriot's Ocean Point/Marriott's Grand Chateau/ HGVC LVStrip/ Grand Regency Branson, MO Registered: Jan 2001	posted 05-24-2005 17:57 Almost sounds like a ROFR without the unit even going on the market first. Think about it, the builder sells a unit for $15,000, then, 5 or 6 years later buys the unit back for $7,500 and resells it with new inventory for $17,000. The sales price on that unit as far as the developer is concerned has gone from the original $15,000 to $22,500 and they haven't had to develope any new buildings. In most businesses this is known as churning. Many owners wishing to sell are would like to get 50% of their purchase price out of their unit going by what resales generally sell for. Plus, there's no advertising, no negotitation, no hassles. Just sign the deed back and get your money. Plus, the developer can then add the selling point by telling people that their units resell value is higher than the typical market value of the typical TS and their units rarely, or never, hit the resale market. Thus, if you like the property you have to buy from the developer. It's a neet little marketing trip that I'm amazed most developers haven't seemed to catch onto yet. [This message has been edited by dougp26364 (edited 05-24-2005).] IP: Logged
jperkins TUG Member Posts: 57 From: Eden Prairie, MN OWN: Pueblo Bonito at Emerald Bay, L. Welk Villas, Carlsbad Inn & Laguna Surf, Club del Soleil, San Clemente Inn, Peppertree @ Wi Registered: Feb 2003	posted 05-24-2005 19:46 I have seen several sell on ebay in the $3,500 recently. What price is the reseller asking? IP: Logged
Liz Wolf-Spada TUG Member Posts: 2082 From: Wrightwood, CA, USA Registered: Dec 2000	posted 05-24-2005 21:18 We own at Welk and bought resale. There was some confusion when they switched computer systems as to whether or not we got the full day use membership. It was resolved in our favor, based on us having bought directly from someone who bought directly from the resort as opposed to some resale broker. When they contacted us about buying our unit I thought maybe it was to make it easier to sell the new Villas on the Green by keeping prices higher in the older buildings as well. Our mf is going up to $640 this year, which seems high to me and it has increased by about $80 per year for the past 2 years. I'm not sure why. Liz IP: Logged
PA TUG Member Posts: 4002 From: San Antonio, TX 78258 Registered: Mar 2002	posted 05-25-2005 04:43 quote: Originally posted by Liz Wolf-Spada: .... When they contacted us about buying our unit ... How did they contact you? And how much did they offer you for which week/room size? Or was it a generic letter to everyone? IP: Logged
armrecsys TUG Member Posts: 168 From: claremont,ca Registered: Jan 2002	posted 05-25-2005 07:11 Hi I bought from a reseller and I never had any problem with using my day use. I think they try to stop you from buying from resale.They are buying from the resale, and saleing it back to you. Linda IP: Logged
Jaybee TUG Member Posts: 1069 From: Sun City, CA, Villas of Sedona,Harbortown Pt., Dikhololo, LWRV, Marriott Desert Springs II Registered: Dec 2000	posted 05-25-2005 12:28 Linda, you have mail. We bought our LWRV from a reseller, and we have all the promised perks...day use & discounts. Their resale prices are ridiculous. quote: Originally posted by armrecsys: Hi, can some one tell me why the builder at Lawrence Welk, Esc. is buying up the older units. What are they trying to do. I would like to buy a older unit , but I was told by a resale office that the builder was buying up the older units keeping the price highter? Can you one shad some information on this commet. Linda ------------------ Jean IP: Logged
SirNewf TUG Member Posts: 32 From: Bucks County, PA Registered: Mar 2005	posted 05-26-2005 04:56 Hi Dougp26364, Your comments about developer resale purchases are interesting. I am finding that the Westin is calling owners of 1 BR units and Upgrading them to new 2 BR. What happens to the original 1 BR and how can they sell them as new when they are original used Older units with the title having changed hands? In the Westins case they are giving the 1 BR owner their FULL purchase price credit to UPGRADE to the 2 BR. Shouldn't these developers be selling the original 1 BR at resale prices since title has changed hands? IP: Logged
sfwilshire TUG Member Posts: 2365 From: Clinton TN Registered: Jan 2003	posted 05-26-2005 05:11 SirNewf, This is not a used car they're selling. (Got a great deal on a van like that once, by the way. It had 9 miles on it when I test drove it, but was considered "used" because of a title issue.) The fact that the unit has been titled to another has no bearing on the value. Developers often do offer "specials" on repos and trade-ins, but they are just using effective marketing. It really has nothing to do with true value. Sheila [This message has been edited by sfwilshire (edited 05-26-2005).] IP: Logged
Mel TUG Member Posts: 1714 From: N Smithfield, RI - owner: Orange Lake Country Club, Kissimmee FL; Tropical Breeze Resort, Panama City FL Registered: Dec 2000	posted 05-26-2005 06:43 If the resort is buying back the 1BR units and completely remodeling, why wouldn't they sell them as new units? That would be not different than if they took an existing building and remodeled it to timeshare units. Perhaps they have prospects who would be willing to buy 1BR at current developer prices (can't afford or don't want the full 2BR units). It doesn't cost them much more in marketing costs to upgrade you and then sell your unit to someone who would otherwise not be buying. Case 1 - you own and keep your 1BR unit, developer must spend extra money to find more prospects for their 2BR unit. Case 2 - you resell your 1BR unit, buy 2BR unit at developer price (don't know why you would, but you do). You have greater out of pocket costs, developer has slightly lower marketing costs. The only winner is your buyer. Case 3 - you sell your 1BR back to the resort at your original cost, and buy 2BR at developer price. Resort resells 1BR at current developer price. You save some money, developer makes profit on 1BR, buyer of 1BR unit pays more. You and developer are the "winners" in this situation. ------------------ Melinda Towne Come visit my homepage IP: Logged
Liz Wolf-Spada TUG Member Posts: 2082 From: Wrightwood, CA, USA Registered: Dec 2000	posted 05-26-2005 10:49 It was just a postcard asking if we were interested. We didn't follow up on it, so I don't know what they were offering. Liz IP: Logged

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