The gift of annual payments
December 27, 2011 6:15 PM Subscribe
Should I refuse a "free" timeshare?
My aunt passed away and one of her assets is a fully paid timeshare. No one else in the family wants it. I'm trying to decide if it's worth keeping or if I should refuse to accept it. I know nothing about timeshares. I've always assumed they were scams.
Here are the details - it's with Starwood. It's a floating week worth 44,000 Weekly StarOptions Value (whatever that means). The annual fees total $1,200.
As I said, I know nothing about timeshares. We vacation often, but are more "bed and breakfast" type travelers than mega-resort people.
My aunt passed away and one of her assets is a fully paid timeshare. No one else in the family wants it. I'm trying to decide if it's worth keeping or if I should refuse to accept it. I know nothing about timeshares. I've always assumed they were scams.
Here are the details - it's with Starwood. It's a floating week worth 44,000 Weekly StarOptions Value (whatever that means). The annual fees total $1,200.
As I said, I know nothing about timeshares. We vacation often, but are more "bed and breakfast" type travelers than mega-resort people.
You need to do some serious research before deciding. Pro: You might be able to trade your week for a place you might enjoy, or rent it to someone. Con: You probably couldn't rent it for $1,200 so it will still cost you cash out of pocket each year. Find out what the rules are for ownership and what the market (if any) is for these shares before deciding what to do.
posted by Old Geezer at 6:23 PM on December 27, 2011
posted by Old Geezer at 6:23 PM on December 27, 2011
Response by poster: cyndigo - the fees are maintenance fees and association fees. They are not tax deductible.
I wonder if it's worth anything as a donation? I hate to refuse it and have it revert to Starwood if there'd be some value as a donation.
posted by 26.2 at 6:29 PM on December 27, 2011
I wonder if it's worth anything as a donation? I hate to refuse it and have it revert to Starwood if there'd be some value as a donation.
posted by 26.2 at 6:29 PM on December 27, 2011
If it helps, I have seen "donate your time share" ads a few times, so there are organizations that do want them.
posted by not that girl at 6:33 PM on December 27, 2011
posted by not that girl at 6:33 PM on December 27, 2011
So you get to pay $1200.00 a year for the rest of your life (or until they raise it) so that you can vacation at limited spots at limited times? Refuse it.
posted by myselfasme at 6:59 PM on December 27, 2011 [2 favorites]
posted by myselfasme at 6:59 PM on December 27, 2011 [2 favorites]
Best answer: By far the most knowledgeable place on the internet about timeshares is TUG. Their forums alone can teach you almost everything you'd need to know to decide if you want this. They also have a place where you can sell/give away your share, if you decide to go that route.
What a points-system timeshare is, more or less, is a commitment to $1200 of vacation hotel/condo rental yearly. Nothing more. The question really is whether your points will bring you $1200 a year of value... to you.
Here's a good FAQ on the Starwood points system. If you read nothing else, read that. There's a link in there to a points chart that will show you what 44,000 points can be used for. If there are interesting-looking places in the Starwood system, and you're interested in spending some time in each of them over the next few years, and you've got the budget for the maintenance fees, you might give it a try. If not, then give it away or try to sell it for a few hundred bucks.
There is almost zero market for a used timeshare. Sometimes you can give them away for the price of the paperwork transfer (you see a lot of $0.99 + fees transactions on eBay). The only exceptions to this are units in desirable locations/times, with low fees (or, in a points system, units with a high point to maintenance fee ratio). I'm pretty sure that $1200 is a fairly high fee for 44k starwood points, but the people on the TUG boards will be able to tell you for sure.
I own a timeshare with lower fees than that (and it's not in a points system, but it trades through one of the exchanges). I've never stayed in my own unit, but I've traded it for weeks in some spectacular places, where a rental would cost far more than my maintenance fees. So, I'd say it's worked out for me. There are lots of people who don't share that story, so YMMV.
posted by toxic at 6:59 PM on December 27, 2011 [3 favorites]
What a points-system timeshare is, more or less, is a commitment to $1200 of vacation hotel/condo rental yearly. Nothing more. The question really is whether your points will bring you $1200 a year of value... to you.
Here's a good FAQ on the Starwood points system. If you read nothing else, read that. There's a link in there to a points chart that will show you what 44,000 points can be used for. If there are interesting-looking places in the Starwood system, and you're interested in spending some time in each of them over the next few years, and you've got the budget for the maintenance fees, you might give it a try. If not, then give it away or try to sell it for a few hundred bucks.
There is almost zero market for a used timeshare. Sometimes you can give them away for the price of the paperwork transfer (you see a lot of $0.99 + fees transactions on eBay). The only exceptions to this are units in desirable locations/times, with low fees (or, in a points system, units with a high point to maintenance fee ratio). I'm pretty sure that $1200 is a fairly high fee for 44k starwood points, but the people on the TUG boards will be able to tell you for sure.
I own a timeshare with lower fees than that (and it's not in a points system, but it trades through one of the exchanges). I've never stayed in my own unit, but I've traded it for weeks in some spectacular places, where a rental would cost far more than my maintenance fees. So, I'd say it's worked out for me. There are lots of people who don't share that story, so YMMV.
posted by toxic at 6:59 PM on December 27, 2011 [3 favorites]
Consider that if you can buy a similar timeshare for a negligible amount, that's all it is really worth. So look at buying 44k Starwood points, and see if it's actually worth something, at which point you could decide whether to sell it to someone, or see that it's really not worth much of anything and if you really wanted it, you could just buy it for yourself, ignoring the inheritance.
posted by smackfu at 8:22 PM on December 27, 2011 [1 favorite]
posted by smackfu at 8:22 PM on December 27, 2011 [1 favorite]
I live in an area dominated by timeshare sales, and many people get stuck in this situation of timeshare they can't give away, much less make back any of the tens of thousands they spent initially.
For most people, the timeshare pitch goes like this: "Let's estimate how much you spend each year on vacations..." Then they add up airfare, hotel, food, etc. to reach $XX,000. That amount is then spread out over 20 years or so, and they work out the numbers to show how great of a deal it is - never mind the annual fees, or the fact that you're only talking about lodging for that rate. Plus you can pass it on to your kids! (And they won't want the fees either). That is what you're comparing - what kind of lodging you can get for $1200 per week. There are some nice timeshares, and getting a hotel with a separate living room / bedroom would be tough for less than $200 a night, but the fees mean you are locked in every year (and fees do go up).
posted by shinynewnick at 8:30 PM on December 27, 2011
For most people, the timeshare pitch goes like this: "Let's estimate how much you spend each year on vacations..." Then they add up airfare, hotel, food, etc. to reach $XX,000. That amount is then spread out over 20 years or so, and they work out the numbers to show how great of a deal it is - never mind the annual fees, or the fact that you're only talking about lodging for that rate. Plus you can pass it on to your kids! (And they won't want the fees either). That is what you're comparing - what kind of lodging you can get for $1200 per week. There are some nice timeshares, and getting a hotel with a separate living room / bedroom would be tough for less than $200 a night, but the fees mean you are locked in every year (and fees do go up).
posted by shinynewnick at 8:30 PM on December 27, 2011
My parents have had a timeshare with Starwood for a few years. (Their home resort is this one.) They've been happy with it. One of the things they like is that they can convert the StarOptions to Starwood Points to stay at any Starwood hotel (Westin, Sheraton, W, Aloft, etc.) - you may want to verify if that's doable on inherited timeshares.
posted by SisterHavana at 8:41 PM on December 27, 2011
posted by SisterHavana at 8:41 PM on December 27, 2011
The number of people who want to get rid of timeshares far outnumber the people who want to acquire them. You've already been made aware that an owner's death doesn't end a timeshare's contract... this is one of the only "assets" where heirs are stuck with the debt of a deceased loved one. That is super fucked up, pardon my french. Run far away from this toxic asset.
posted by juniperesque at 8:45 PM on December 27, 2011 [5 favorites]
posted by juniperesque at 8:45 PM on December 27, 2011 [5 favorites]
Perhaps ask some of the other family members why they didn't accept it?
posted by dave99 at 8:48 PM on December 27, 2011 [1 favorite]
posted by dave99 at 8:48 PM on December 27, 2011 [1 favorite]
I have an old roommate who worked for a timeshare company. They're scams. You'll never get enough user out of it to offset the costs they slap you with.
posted by cmoj at 8:51 PM on December 27, 2011 [2 favorites]
posted by cmoj at 8:51 PM on December 27, 2011 [2 favorites]
I'm so glad we turned down a "free" timeshare from my wife's father about ten years ago!
For my wife, one of the best parts of a vacation is not having to cook. Had we taken up her dad's offer, we'd have been stuck with a lot of expense over the years, and she'd have either had to cook or we'd have been spending a lot on meals.
I have never, ever, understood the appeal of timeshares.
Plus, the one time we sat through a Westin timeshare sales pitch in St. John USVI, it just had sleaze written all over it.
posted by imjustsaying at 2:38 AM on December 28, 2011
For my wife, one of the best parts of a vacation is not having to cook. Had we taken up her dad's offer, we'd have been stuck with a lot of expense over the years, and she'd have either had to cook or we'd have been spending a lot on meals.
I have never, ever, understood the appeal of timeshares.
Plus, the one time we sat through a Westin timeshare sales pitch in St. John USVI, it just had sleaze written all over it.
posted by imjustsaying at 2:38 AM on December 28, 2011
If you look at the "Completed Listings" of an ebay search for "starwood timeshare", you can see a couple of 44,000 point timeshare auctions that ended recently. I see one where the sale price was $126 and another that sold for $1. In other words, there's no reason for you to accept this one now. You can get a similar "free gift" any time you feel like it, without worrying about an inheritance. Or, on re-reading the other answers here, what smackfu said.
posted by Right On Red at 4:45 AM on December 28, 2011 [1 favorite]
posted by Right On Red at 4:45 AM on December 28, 2011 [1 favorite]
Time shares are a poor investment vehicle. They can be a good leisure purchase if and only if you love the home resort, your contractual room/suite class, AND the week(s) that you have a right to up front. That last part is important; you really need to be in a sufficiently settled place in your life where you confidently say you'll be able to, and happy to, spend the week between Christmas and New Year's at the same resort for at least eight of the next ten years.
posted by MattD at 9:54 AM on December 28, 2011
posted by MattD at 9:54 AM on December 28, 2011
you really need to be in a sufficiently settled place in your life where you confidently say you'll be able to, and happy to, spend the week between Christmas and New Year's at the same resort for at least eight of the next ten years.
And be willing to pay more than it would cost to just rent a room at a resort for a week in exchange for whatever convenience there is in having one reserved ten years in advance.
According to my roommate their primary customers were confused old people. He got out of there as fast as he could.
posted by cmoj at 11:04 AM on December 28, 2011
And be willing to pay more than it would cost to just rent a room at a resort for a week in exchange for whatever convenience there is in having one reserved ten years in advance.
According to my roommate their primary customers were confused old people. He got out of there as fast as he could.
posted by cmoj at 11:04 AM on December 28, 2011
Response by poster: Thanks. You all confirmed what I thought and we're ditching the timeshare without any guilt. For anyone who finds this thread on Google, here is the result of the research. Our decision was highly influenced by a pending annual maintenance payment due in 2 weeks.
Donate: The timeshare could not donated because donations need to occur when there is no payment due. The timeshare donation process takes between 6-8 weeks. In our case, the annual maintenance fee is due within that time period.
Keep: This really wasn't an option, but we did research it. The annual maintenance fees (plus cleaning/resort fees) put the rental cost at about $175 per night which isn't horrible for a 2 bedroom condo. The whole concept of it had zero appeal for us. We did look at keeping the timeshare for some people in our extended family who travel with kids, but we decided annual commitment was lunacy.
Resell/rent: Possible, but not worth the hassle in our case. It would take too long and we'd need to have someone take ownership of the timeshare and commitment which we did not want to do.
Return: In our case, I'm returning the timeshare on behalf of the estate. We're getting nothing for it, but we're ditching the annual fees, etc.
Thanks everyone!
posted by 26.2 at 6:37 PM on December 28, 2011 [5 favorites]
Donate: The timeshare could not donated because donations need to occur when there is no payment due. The timeshare donation process takes between 6-8 weeks. In our case, the annual maintenance fee is due within that time period.
Keep: This really wasn't an option, but we did research it. The annual maintenance fees (plus cleaning/resort fees) put the rental cost at about $175 per night which isn't horrible for a 2 bedroom condo. The whole concept of it had zero appeal for us. We did look at keeping the timeshare for some people in our extended family who travel with kids, but we decided annual commitment was lunacy.
Resell/rent: Possible, but not worth the hassle in our case. It would take too long and we'd need to have someone take ownership of the timeshare and commitment which we did not want to do.
Return: In our case, I'm returning the timeshare on behalf of the estate. We're getting nothing for it, but we're ditching the annual fees, etc.
Thanks everyone!
posted by 26.2 at 6:37 PM on December 28, 2011 [5 favorites]
This thread is closed to new comments.
Maybe 20 years ago before the internet and deals, timeshares were worthwhile. Today it is so easy to get a decently priced vacation (and in a condo/home via AirBnB or VRBO), I don't understand the utility anymore.
posted by k8t at 6:20 PM on December 27, 2011 [1 favorite]