So many SSR's up for sale....in the 70's

[alldiz]

Hi,
Just looked at resales on the TSS website. I am shocked to see how many SSR resales there are. I'm talking a ton....and for cheap...many listings in the 70's priced per point.

Is this worrisome for DVC?
Thanks
Kerri

[bgraham34]

I dont think its something to worry about right now. It is just like the housing market right now. Everything will turn around. If you have the money to spend by them up.

[alldiz]

I dont think its something to worry about right now. It is just like the housing market right now. Everything will turn around. If you have the money to spend by them up.

I hear ya....wish I could:goodvibes
Kerri

[ScottJ]

Doesn't DVC basically control resale pricing with ROFR?

[DVC Mike]

I'm just glad I'm not an SSR owner who needs to sell their contract. Ouch!

[jarestel]

Is this worrisome for DVC?

Only if the resale prices for all of the resorts begin falling (and if you are one of those who purchased DVC as an investment). The larger resorts will always sell for less on the resale market since there are more of them.

[alldiz]

Doesn't DVC basically control resale pricing with ROFR?
Let's hope it stays this way.
I'm just glad I'm not an SSR owner who needs to sell their contract. Ouch!
Seriously....geez...soooo many.
Only if the resale prices for all of the resorts begin falling (and if you are one of those who purchased DVC as an investment). The larger resorts will always sell for less on the resale market since there are more of them.
This is true....but I was also surprised how many AKV units were up and they are new to the market.
Anyways....I'm not selling....maybe I'll get my next ressie cause of all the contracts waiting to be sold;)
Kerri

[Mouse511]

If you have the money to spend by them up.

I dont want this to sound harsh - but thats what we did !!! Get them while the getting is good. We should close on ours this week. :thumbsup2

[Connears]

There have been many posts about the large number of SSR resales on TTS(I started one) in the recent past. Many have given their suggested reasons, I tend to think the economy(those who stretched to purchase or are now having financial problems), the large size of the resort and people purchasing SSR with thoughts of always staying at other DVC, have all impacted on the large number up for resale. You can also see a good number of AKV resales which is the last resort to be sold. Just glad I purchased OKW(when it was the only DVC) in 1994 and paid upfront......I have enjoyed many years of dvc visits.

Connears

Of course we did add on at HHI in 2002 to get 11 month window for summer!

[tjkraz]

Hi,
Just looked at resales on the TSS website. I am shocked to see how many SSR resales there are. I'm talking a ton....and for cheap...many listings in the 70's priced per point.

Is this worrisome for DVC?


It's troubling for anyone who might be looking to sell. Otherwise, why should anyone care? We often talk about how timeshares are NOT investments. They should be bought to use...not to re-sell. Whether SSR contracts are going for $100 per point or $60 per point has little impact on my point usage.

As for the pricing, the opening sale price for SSR was $79 per point. Personally I could sell my points today and still break even. That's nothing to sneeze at considering I used the points for 8 or 9 trips over the span of 4+ years, and my only OOP expense would have been the dues.

Personally I'm more surprised to see 20+ AKV listings after being on the market for only 18 months. But again, I don't see any reason for AKV owners to worry. Anyone who bought with the expectation that resale values would follow a set pattern made a poor assumption to begin with.

[PEANUT1]

I'm not worried...more excited. I hope the prices stay low so I can do an add on at AKV later this year.;)

[culli]

I'm just glad I'm not an SSR owner who needs to sell their contract. Ouch!

That is not bad considering what other timeshares are going for compared to what the developer is charging. Most people trying to sell their TS would be very happy to get what DVC resale is getting.

[Starr W.]

That is not bad considering what other timeshares are going for compared to what the developer is charging. Most people trying to sell their TS would be very happy to get what DVC resale is getting.

You're right about that. I bought a fixed summer Bluegreen week resale for $405.

Mike should take a look at Wyndham points retail vs. resale:scared1: .

At least with DVC you get a nice chunck of dollars back, not a pile of pennies.

[chalee94]

Doesn't DVC basically control resale pricing with ROFR?

not really, no. supply and demand set the pricing.

DVC can take advantage of "fire sales" by buying lowball offers to sell, but DVC is run by capitalists. if DVC can only sell so many SSR contracts at $94/$104 or whatever, they aren't going to acquire pts if that means losing money IMO. they haven't kept VB from falling into the $60s/high $50s, and i wouldn't expect them to support SSR if the demand just isn't there...

[hakepb]

not really, no. supply and demand set the pricing.

DVC can take advantage of "fire sales" by buying lowball offers to sell, but DVC is run by capitalists. if DVC can only sell so many SSR contracts at $94/$104 or whatever, they aren't going to acquire pts if that means losing money IMO. they haven't kept VB from falling into the $60s/high $50s, and i wouldn't expect them to support SSR if the demand just isn't there...

I think one of the primary reasons they exercise ROFR is to maintain higher new sale prices in other resorts. Your purchase of AKV looks better when you know you can resell, if needed. This is helpful to DVC if they want to maintain a low pressure sales environment.

[CarolMN]

IMHO, Disney's willingness to exercise its ROFR is by far the main reason resale prices are higher for DVC resales than they are for other timeshares.

"Supply and demand" has much less influence on the price than the floor Disney sets via ROFR. I agree with hakepb - they use ROFR to "protect" the price of the new DVC resorts.

[Mtnman44]

Yes, BUT: Supply and Demand still affects the ROFR price. DVC can only buy back what they can reasonably expect to re-sell and still cover costs. If they don't have enough buyers at x price, then they cannot ROFR at y price. So the market is still setting the ROFR price. Naturally, if DVC could simply choose what they wanted to sell for, the price would be $200, $500, .....whatever per point.

IMHO, Disney's willingness to exercise its ROFR is by far the main reason resale prices are higher for DVC resales than they are for other timeshares.

"Supply and demand" has much less influence on the price than the floor Disney sets via ROFR. I agree with hakepb - they use ROFR to "protect" the price of the new DVC resorts.

[BCM49ER]

Before we bought into SSR, I was a little concerned about the same thing, although, it may not have been that far out of wack at that time. We still chose SSR because it was right for us and tried not to let those values determine where we went. As long as you like it, that is all that matters, right. We don't have any plans to sell so it doesn't bother me that much that the resales are cheap.

[chalee94]

IMHO, Disney's willingness to exercise its ROFR is by far the main reason resale prices are higher for DVC resales than they are for other timeshares.

IMO, DVC prices are higher than other timeshares because being onsite at wdw is a unique value driver. disney uses ROFR to take advantage of that value in cases where a seller is desperate.

but i could be wrong...

[fishermouse]

Just wondering are the SSR resales really up that much % wise than all the other resorts? Plus maybe we should be comparing SSR to the others based on the same time frame as when the were originally purchased. I think in the beginning you geta lot of people that bought. over their head. Especially considering the marketing that went into selling SSR. Your older resorts now have less money owed on them. As has already been stated the time shares are bad investments.

[hakepb]

Before we bought into SSR, I was a little concerned about the same thing, although, it may not have been that far out of wack at that time. We still chose SSR because it was right for us and tried not to let those values determine where we went. As long as you like it, that is all that matters, right. We don't have any plans to sell so it doesn't bother me that much that the resales are cheap.

Supply and demand depends on the total DVC market. Theoretically, DVC could ROFR SSR at "loss" if they thought they were propping up the new resort's sales (which I guess tha new points have a high profit %)... Also Disney does not have to ROFR 100% of contracts to maintain a price, they just have to ROFR to keep sellers/buyers "scared enough" to pay overall higher prices.
Although if DVC's fiscal year begins in October, DVC may be ROFR'ing less on points they do not have a waiting list for just to keep those expenses off the books. It may be possible that ROFR's go up in October, perhaps they have an ROFR budget?

[DisneydaveCT]

IMHO, a major reason for the downturn in the resale market is very probably the economy, and not just a loss of interest in SSR.

People are struggling with the mortgage crisis. The high fuel costs are making trips to WDW more challenging for people, whether they are driving themselves, or flying into MCO. . Being unable to visit WDW annually may be causing people to rethink their investment

Personally, my plans for returning to WDW for Thanksgiving is questionable due to the high airfare. I had been paying $250 R/T, BDL to MC0, for Thanksgiving for several years. Right now, the best rate I can find is $500 R/T. But while I may cancel my Thanksgiving plans, I am not even considering selling my OKW membership. Even my unemployment 4 years ago didn't result in my selling my DVC membership.

If you look at the resale offerings, even the prices for OKW has come down. That could be related to many OKW owners who did not want to take advantage of the 15-year extension. Many of those people posted on the Disboards that they would rather sell their OKW membership and buy a new membership at AKV, or one of the newer resorts. Dumping this inventory on the market would certainly bring down the OKW prices, which in turn could bring down the other prices as well.

Even though I firmly believe the economy is a key reason, I would strongly urge the DVC executive management to read the other threads about poor resort conditions. While DVC and Disney cannot change the economy (or could they :wizard: :worship: ), they can definitely address the issue of poor resort conditions.

And like a few others, if I had the money, I would buy more points at the reduced pricing right now. :teacher:

[alldiz]

Thanks everyone:goodvibes
I will definately look at it in a positive.

All those resales....of all the DVC's have less people making ressies;)
Kerri

[White_Sox_Fan]

Even if you add up all the points listed on the dvc-resales site it is less that 0.2% of the total points in SSR.