My name is Syed Sarmad and I’m the principal broker for Advantage Vacation. Advantage Vacation is a licensed real estate company specializing in timeshare resales. In particular, we specialize in Westin timeshare resales.
Today I would like to talk about Westin’s Right of First Refusal option. They have a Right of First Refusal option on four of their properties – those properties are Westin Kaanapali Ocean Resort Villas, Westin Kaanapali Ocean Resort Villas North, Westin Princeville Ocean Resort Villas and Westin Mission Hills in Palm Desert, California. They have a 10 business day Right of First Refusal option on these four Westin timeshare properties.
What that means is, when there is an agreement entered into between a buyer and a seller the escrow agent or the seller submits a copy of that agreement to Starwood’s office in Orlando and Starwood has 10 business days to respond to their Right of First Refusal option.
If they do elect to exercise their Right of First Refusal option and re-purchase the timeshare they in fact replace the buyer and become the buyer and proceed with their transaction. The seller still receives the same net proceeds – it’s just that it’s a new buyer.
Now, how this impacts the resale market is that Starwood has set market prices or resale prices of their four properties at these locations. So, it is no longer a buyer and a seller who dictates the market prices at which they can purchase a resale at a Westin timeshare property (which is typically the case in all resales of timeshares), it is Starwood, which is a third entity that really impacts the resale price.
So, what it takes is not what the buyer and seller have agreed upon for the sales price, what is important is at which price Starwood will not exercise its right of first refusal option.
It is very important to know these numbers. Fortunately, Starwood is fairly consistent at the numbers at which they exercise their option. Now of course these numbers have gone up in the past few years but they are fairly consistent and it is very important to actually work with an experienced timeshare resale broker who has knowledge about these properties and can properly advise you on what numbers it will take to pass the First Right of Refusal.
Starwood does not buy all properties back on the Right of First Refusal option. There is a number which goes with each property.
I hope this information is helpful. Talk to an experienced resale broker who has the information on these Westin resale properties and can give you proper advice.
If you have any other questions that I can answer for you, please feel free to get in touch with me.
Syed Sarmad, Principal Broker for Advantage Vacation