Question about the resale of a subsidized VB contract.

[tvwalsh]

I have listed a 50 point VB subsidized contract on TTS. The member fees are 4.97/point (The number in the listing is incorrect.) instead of $6.41/point on a non-subsidized contract.

My question is, How much more do you think a subsidized contract with lower dues ($4.97/pt) is worth than an unsubsidized contract with higher dues (6.41/pt)?

(The subsidy does go to the new buyer if anyone might think it does not. )

 

[CarolAnnC]

When I purchased my subsidized VB contract, I did not take into consideration the lower dues in my offer. I bought for asking price, based on ROFR going rate and the fact that there were banked points to be had as well as all current points. It was a price comparable to all VB resales at the time.

I did not consider the dues rate to be something adding any dollar value. If you ask more, in these economic times, you may not sell it.

 

[tvwalsh]

Did you say that lower dues did not increase the value to you at all? On a 50point contract, that would be $150 saved in the first two years of member fees.

 

[Dean]

It has been stated on this board in the last few months that the subsidies are now not being carried forward to the new buyer, best to make certain on this point if you list them differently.

 

[tvwalsh]

After the question arose, several people on this board and two boards made an effort to resolve this issue once and for all. The verdict is in. The subsidies do pass to the new owners be they the second owner, third owner, etc.

DVC, however, can break the chain by the magic of ROFR!

 

[CarolAnnC]

Did you say that lower dues did not increase the value to you at all? On a 50point contract, that would be $150 saved in the first two years of member fees.

To be honest with you, I didn't even ask about it. Perhaps some will consider $75 a year a deal breaker. Not for me though...

 

[tvwalsh]

I would not be surprised if a fair number of buyers and sellers are unaware of whether or not the contracts they are dealing with are subsidized or not.

One rummager I know found an original, signed Currier and Ives painting for $95. On a 100 point contract , kept to the end, you may have "found" over $5000!