Trading Contracts?

[JWimberley]

I was curious if anyone knows about the ability or feasability of trading contracts. For example, if somebody has a Boardwalk contract but typically stays at Old Key West could they arrange a trade with an OKW owner that would rather have points at the Boardwalk for the 11-month booking window.

My first thought was to sell the BWV contract and then purchase an OKW contract but then you end up with two sets of closing costs and commissions. Not good for either owner but great for the agent

Has anyone had experience with this in the past?

Thanks,
Joshua

 

[WebmasterDoc]

You can certainly try to find another owner who is willing to make reservations for you at 11 months or have OKW points transferred into your account so you could make them yourself. Otherwise, selling the BWV and purchasing your own OKW contract is the only way to have control over your reservations completely.

 

[Dean]

I was curious if anyone knows about the ability or feasability of trading contracts. For example, if somebody has a Boardwalk contract but typically stays at Old Key West could they arrange a trade with an OKW owner that would rather have points at the Boardwalk for the 11-month booking window.

My first thought was to sell the BWV contract and then purchase an OKW contract but then you end up with two sets of closing costs and commissions. Not good for either owner but great for the agent

Has anyone had experience with this in the past?

Thanks,
Joshua

Actually trading contracts permanently is little different than buying and reselling. Two sets of ROFR and two full closings. There are a few situations where it makes sense but is a lot of hassle for little extra benefit over just selling and then buying what you want.

 

[JWimberley]

Actually trading contracts permanently is little different than buying and reselling. Two sets of ROFR and two full closings. There are a few situations where it makes sense but is a lot of hassle for little extra benefit over just selling and then buying what you want.

That's what I thought but I was hoping that there was an easy way to do it... I guess I would be ahead to buy what I want at OKW and then sell my BWV contract since the BW seems to be commanding a little higher cost per point. I guess my profit will probably be eaten up by the closing costs and commissions but in the end I'll come out ahead by having the ownership that I really want and the lower dues costs...

 

[Dean]

That's what I thought but I was hoping that there was an easy way to do it... I guess I would be ahead to buy what I want at OKW and then sell my BWV contract since the BW seems to be commanding a little higher cost per point. I guess my profit will probably be eaten up by the closing costs and commissions but in the end I'll come out ahead by having the ownership that I really want and the lower dues costs...

It really depends on how you'll use it. Owning a destination resort like BWV will give you a lot more options long term than owning at SSR, OKW, VB or HH; at least for on property options or if you need to rent or do a private exchange. Of course VB & HH would be appropriate for one that wanted to stay there a significant portion of the time but would really only be truly reasonable if you wanted mid summer (mid June to mid Aug) at HH Xmas, Feb to mid April at VB. For OKW, I'd say the GV would be the only thing you really need to own there to get if you plan ahead appropriately. If you need OKW for part of the time, you might consider a smaller add on. If you counted closing costs and sales commissions toward a direct add on, you'd almost have a 25 pt add on contract paid for right there.

As I hinted, there are a couple of situations where doing the direct exchange can be reasonable. These would include if you find someone that has OKW and really wants BWV and are willing to pay the appropriate difference in price per point and/or someone willing to work with you on closing and ROFR such that all you'd have to pay on both sides would be the recording fees. Having done this once myself (non DVC for DVC) and having discussed with a number of people about the possibility (DVC for DVC and non DVC as well) I can tell you that most people are not reasonable in this area. They usually want to count the listing price (or what the retail price is if higher) for their resort and low ROFR for yours creating a disparity in their favor. Generally I haven't thought they were truly unreasonable people, just ignorant of the facts and realities involved.

 

[dvcnewgirl]

I know how you feel. I bought a BWV contract before staying there and now wish I could have an SSR or OKW instead. From this board I would think a lot of people would want to trade but it really does not work out. I now have 2 SV studios for the first week in Dec. next year which I am sure someone would love to have but I have to hold on to them and see if I can get OKW at the 7 month window . I love your idea of trading...

 

[Tamar]

Well, on the other side of the fence, we wish all our points were BWV points, as that's pretty much the only place we stay (when we can). We own BWV, OKW, and HH.

Tamar