View Full Version : Minimum Points for purchase on a resale?
03-06-2001, 08:55 AM
I have been considering a purchase at DVC. When purchasing timeshare I went to resale market and got a summer red week in NH for less the $1,000 including closing costs.
I realize resale is a good avenue here also. The minimum purchase through Disney appears to be 150 points. If you make an initial purchase in the resale market is there a similar minimum?
03-06-2001, 09:15 AM
There is no stated minimum for resale, although Disney could choose to excercise its right of first refusal if it believes you are buying too few points. A more realistic problem is finding a lower point resale and one for an acceptable price. When there are a low number of points and you have to pay closing costs (which are rather fixed and do not vary much based on the size of the contract), you need to pay a low price for the points so that your overall total cost (points plus closing costs) does not exceed the price Disney is charging (its $72 a point includes closing costs of about $500). At the same time, the seller really has to sell at a high price because brokers often have a minimum commission of $1,000 to $1,500 for any contract; thus the high price is needed to avoid a huge loss due to paying commissions on a small point sale. A second problem is that having under 150 points is likely going too low to do much and in the future if you have to sell that contract you will face the same issues as the seller you purchased from. With many timeshares other than Disney people are willing to sell a week for a very low number because they are just trying to get rid of it--they will accept a price that equals the commission just so they no longer have to pay yearly dues. That is not the case with Disney and likely even if you can find a low point resale you will still have to pay more than $60 a point
03-06-2001, 09:16 AM
Yes, if you do not already own at DVC the smallest contract you can buy is 150 points. There are smaller contracts available, but only as add-ons for people who already own at or above the minimum level.
'We're all here because we're not all there!'
Disneyland 1956,57,58,59,60,61,62,63,64,65,66,70,75,77,78,84, 86,89,99
Next trips: 12/01 BWV; 3/02 Grand Californian
03-06-2001, 09:33 AM
I just wanted to post a conclusion I came to today about resales. Please correct me if I'm wrong. If I was going to buy 200 points, I figured it would cost me the same or more to buy a resale at $65/pt or more versus VWL at $72/pt through Disney. The reason I say this is if I purchased through Disney I could do the Magical Beginnings and sell back half my points. That would take $1000 off plus I would still have 100 points to bank until October (the use yearif I buy right now) when I get 200 more points. Plus with the resale I would end up paying closing costs. I figured the only way a resale would be a better deal is if it was selling for less than $65 a point and there were points banked or the use year is before October. Also, if it is most important to have BWV as my home resort (which I haven't yet decided). I hope I am making sense here. Does this sound accurate?
I figured my total cost of 200 points through Disney is $14,400 - $1000 (magic. begin.)= $13,400
A resale at $65/pt is $13,000 + $400 closing costs= $13,400. Same price. Do resales sell for less than $65/pt?
[This message was edited by GCM13 on 03-06-01 at 01:57 PM.]
03-06-2001, 10:06 AM
Resale prices vary depending on demand and listing prices are negotiable. Your basic analysis is reasonable (although my actual closing costs on a 220 BWV resale contract was $475 with the seller paying the $75 transfer fee to Disney). Recent "listing price" for OKW on contracts in the 200-250 point range have been around $65 per point, with varying numbers of points immediately available. There have been very few BWV listings on the two major resale sites (The Timeshare Store and A Timeshare Broker) the last couple of weeks, so this market is harder to judge, but what has been listed have typically been at $68 per point. You cannot tell actual selling prices from the web listings, since sellers may be accepting less than the listing price, so you may need to make an offer or two to get a feel for the selling prices which are being accepted. We had talked with a broker at The Timeshare Store about our desire for a BWV contract, providing information about the minimum and maximum number of points we would be interested in. As it turns out, we received a call within a week regarding a contract that met our needs coming in for listing (this was mid-January), made an offer right away (we were paying cash so there was no problem accessing money for a deposit or the closing), and actually closed about two weeks ago. At the time, I thought we were paying a premium compared to the current market but my DW was not interested in owning at either of the other WDW DVC properties (although she does look forward to staying at both at some time in the future). It now appears that BWV has become very desirable in the resale market so listing prices have increased and what we paid no longer looks so bad;). I don't know if the upward trend in prices will continue. I simply considered an extra $1 or $2 per point on a 220 point contract as being a minor issue if we were able to get the resort we wanted as our home resort. (Buy where you most want to stay.) The fact that the use year also fit our vacation pattern well was an added benefit.
03-06-2001, 10:21 AM
Resales do go for less than $65 even when asking price is higher. Your analysis is correct as long as the contract you buy resale also has only 100 points left in current year; if it has all 200 then you are value-wise doing better in the resale if not cash-wise. For example, you could take that extra 100 points from that resale and rent them out immediately at $10 a point and thus end up better than Disney with the same number of points left. Nevertheless, at $65 you really have to consider whether a resale is worth the bother.
Next is one thing not in your hypo--what happens when you have to finance the resale and can't pay cash. It is here where even a $62 or possibly less resale may not even make sense if, as is usually the case, the financing rate you get in the resale market is a few points above what Disney is offering, in which case your total cost for the resale at $62 a point will still be greater than the total you will pay through Disney
03-06-2001, 10:24 AM
Your math looks good to me. I am doing the same comparisons as you right now, trying to decide which road to go down. One other thing to consider that may tip the scales slightly is the fact that Disney is currently backing up the use year 6 months. So if you use MB and sell back half your points, your wait would only be 6 months to get your next influx of points.......Good Luck!
03-06-2001, 05:38 PM
I agree with you reasoning. As with other posts here, I also agree that some of the other factors to be considered are just as important.
I personally wanted OKW as my home resort for the 11 month booking window. With OKW, at least right now that doesn't seem to be as important as with BWV but it could be considering that I'm planning on using this through 2042. Lots of things can change. So if OKW or BWV is your choice for home resort then resale is your only option.
Also, don't assume that you have to pay the closing costs. My offer was a lower per point cost and that the seller pay the closing costs as well. It was accepted.
For me the financing worked out better on the resale that it would have been through Disney. Of course if I had bought direct through Disney, I would have used my own financing also.
Just consider all the aspects; home resort, use year, points available or banked, price per point, who pays closing, etc.
03-06-2001, 05:57 PM
It is my understanding you must own the min. purchase of 150pts. before you can purchase a resale for less points. Most brokers know this rule. At the present time the resale market is hot. Specifically, BWV seem to be the most desirable and has been rated number one timeshare by tug. Each person has to make a determination if it worth overpaying or buy directly from Disney. Some indivduals seem to think that when BCV become available the price per point will be in the range of $8o plus per point. I am not sure the price will be that high; however, I would not be surprised if there will be an increase next year. If interested in a resale I would contact the timeshare store and place my name on a waiting list. My final point is I do think the prices will increase next year. Good luck in your decision! Enjoy! ;)
If you are interested in a resale broker I can suggest one that we worked with. you can email me for the information. She was great to deal with and very professional, low key and kept in great communication with us through out the process.
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