How to Bid on Timeshare Auctions - Part 1

Mario Collura: The type of auction that we do, what you really need to get a handle on is what we value is one that was originally sold and what the resale value is. So, maybe I can give the viewers a little idea of what the ranges are. Developers typically sell from 10,000 to 15,000. A.D Kessler: Per week? Mario Collura: Per week, correct. Female: 10 to 15 of what? A.D Kessler: For usage? Mario Collura: Yeah, for one week usage per year. A.D Kessler: Dollar? Mario Collura: Yeah, $10,000.00 to $15,000.00. Female: Or per units. A.D Kessler: Usage per year—how long of period? Mario Collura: Typically, we would be in that range it would cover deed which would be you know forever in perpetuity or it could be a right to use, that could be 30 years, 40 years and if it’s outside of the US it’s probably going be to— Female: Are they less expensive when they’re that way? Mario Collura: Typically, it would pay less for a right to use. And you would see about—for example, let me give an example. A thousand to $15,000.00 difference if it’s a right to use. Going along with the actual price the maintenance will also be a little bit less because the property is going to be revert to the original developer so he is—some of that maintenance fee. So, a right to use will cause you a little bit less money but the disadvantage is when you go to—or give it to somebody later on in life there is only going to be a certain amount of years left.