⇓ Q: How do I determine the value of a timeshare I am trying to buy or sell?
A: There are 5 components of points timeshare valuation:
1) $4.1* / 2K annual points
2) Currently available use fee credits on the account
3) Currently available points on the account ($4.1* / 1K points)
4) Points Efficiency Premium (PEP) over 3-10 year of planned ownership – ($4.1* / 1K annual points + annual use fee credit – annual maintenance) / year
5) Deeded week premium for platinum weeks only
Note that these price estimates include closing costs – this means that if there are no currently available points or use fee credits and the week is not platinum and the points efficiency premium is low because maintenance is high for the number of points, it is entirely possible that the value of the timeshare could be less than the closing costs that the buyer is asking.
* 4.1 based on PEP of $0 for 109K Hot Springs unit with $552 annual maintenance effective 12/2012
⇓ Here’s an example calculation:
* 163K annual points
* $581 annual maintenance
* $109 annual use fee credit
* 172K points currently available
* $109 use fee credit currently available
* 5 year time horizon for buyer
* Non-platinum week
Here are the cost components:
1) 163 x $4.1/2 = $334
2) $109
3) 172 x $4.1 = $705
4) (163 x $4.1 + $109 – $581) / yr = $196/ yr x 5 years = $980
5) $0
TOTAL = $334 + $109 + $705 + $980 = $2128
A: This question is best answered with an example.
2011 points expire at the beginning of your deeded week in 2o11. They can be used from the beginning of your deeded week in 2010 until the beginning of your deeded week in 2011. They can be rolled over one time 90 days before expiration, in which case they would expire at the beginning of your deeded week in 2012. Before you can use 2011 points, 2011 maintenance must be paid. Maintenance is normally due at the same time for all deeded weeks (e.g. Jan 1, 2011 for 2011 maintenance).
A: Points are points – it doesn’t matter what Escapes resort they come from. The way a points timeshare works is that 10 months before the deeded date in a given usage year, you get the points value of your deeded week added to your points account if you have not already booked your deeded week. Between 12 months and 10 months you may book your deeded week instead of getting points. Once you have the points in your account, they are no different from points of other priority levels, expiration dates, or resorts. When you decide not to use your deeded week at a specific resort, you are wasting the premium you paid to get that specific week, since all points are the same.