First time DVC buyer help

[madhavok]

Hello all. I'm looking to buy into DVC through resale and am quite impressed with some of the deals members have confirmed in the ROFR thread. I'm familiar with a couple of the resale websites but it seems many are getting prices quite a bit lower than advertised, and some including closing costs / maintenance fees.

Can anyone point me in the right direction here, either reply or PM? I'm hoping to get into DVC as I have a couple young kids who will enjoy Disney for years to come.

Thank You,
M.

 

[Deb & Bill]

Hello all. I'm looking to buy into DVC through resale and am quite impressed with some of the deals members have confirmed in the ROFR thread. I'm familiar with a couple of the resale websites but it seems many are getting prices quite a bit lower than advertised, and some including closing costs / maintenance fees.

Can anyone point me in the right direction here, either reply or PM? I'm hoping to get into DVC as I have a couple young kids who will enjoy Disney for years to come.

Thank You,
M.

Resales seem to be a seller's market right now. So you might wind up offering what the owner asked. Ask the agent you work with what they are seeing right now.

 

[chalee94]

yeah, resales are still a good deal relative to direct pricing, but i'd hang out on the boards for a few months to get a sense of how things work and what current owners like and don't like...and just be patient and wait to see if prices come down a bit.

you can feel free to offer less than the asking price and see how it goes, but as the economy is stabilizing, fewer sellers are in a hurry to unload their contracts...

 

[ELMC]

One thing to keep in mind is that the ROFR thread is a bit of a "bragging board" where people go to share their great deals. In all likelihood, someone who paid a high price for a contract is less likely to post their information, thus skewing the numbers a bit. That being said, the listing prices are simply asking price, and many, many sellers will take a few dollars less per point than what they are advertising. Good luck with your research and your purchasing decision.

 

[SFlaDisneyfans]

One thing to keep in mind is that the ROFR thread is a bit of a "bragging board" where people go to share their great deals. In all likelihood, someone who paid a high price for a contract is less likely to post their information, thus skewing the numbers a bit. That being said, the listing prices are simply asking price, and many, many sellers will take a few dollars less per point than what they are advertising. Good luck with your research and your purchasing decision.

We never thought of the ROFR thread as a sort of bragging board (though I see your point). When we were researching our first resale purchase, we followed it to track what members were actually paying per point since the websites will only show asking price. We felt it helped us as we made offers on contracts.

 

[lorie13]

I found the resale board a valuable tool. It showed me what contracts had actually not only been accepted by owners but what Disney let through ROFR. After looking through all the closed sales I decided what I wanted to pay for a contract. I charted it all out in an excel file. I wanted something not the lowest nor the highest. We started making offers in May and probably made about a dozen or so offers. Some owners countered, some flatly refused. Finally the first week of July I agreed on a contract with an owner through Fidelity. We have now passed ROFR and signed closing docs. Waiting for recording.
Also when determining the value of the resale contract I looked at what points were available with it, I gave those points a value of $11 each which is what can easily be received from renting them out. If dues were to be paid on those points, then I subtracted them from the rental value. To me that was the true per point value of the contact. I did not take into account the years left on it though. I did not consider stripped contracts.
It is really a sellers market (just like real estate in our area). Whether this continues or is only a mini bubble, no one can tell for sure.
My opinion is if you have time offer what you feel comfortable with, if you want a contract now be willing to be pay more.
Good Luck

 

[ELMC]

We never thought of the ROFR thread as a sort of bragging board (though I see your point). When we were researching our first resale purchase, we followed it to track what members were actually paying per point since the websites will only show asking price. We felt it helped us as we made offers on contracts.

Don't get me wrong, it's an incredibly useful tool. However, after tracking it for several years I can say that I have seen many, many higher priced deals that somehow fail to show up on the ROFR boards. While it is helpful, I think it's important for prospective buyers to understand the context of the information as well as the fact that it is an incomplete data set. The information on that thread is predominantly the lower end of the price range for recent resales. For every few people who have shared their experience on how valuable it has been, there have been others who have been frustrated because they have not been able to equal the deals found on that thread and couldn't understand why.

 

[SFlaDisneyfans]

Don't get me wrong, it's an incredibly useful tool. However, after tracking it for several years I can say that I have seen many, many higher priced deals that somehow fail to show up on the ROFR boards. While it is helpful, I think it's important for prospective buyers to understand the context of the information as well as the fact that it is an incomplete data set. The information on that thread is predominantly the lower end of the price range for recent resales. For every few people who have shared their experience on how valuable it has been, there have been others who have been frustrated because they have not been able to equal the deals found on that thread and couldn't understand why.

Good insight. Something we will factor in when we start to shop for our next contract. Thanks.

 

[Lil' Grumpy]

maybe, just maybe ...the reporting isn't accurate.

fyi~ when i first came here ( not the dis but the dvc section)
i was interested in all the postings great deals. but when i
compared the claims with what was being offered by
the tss store, there were major differences in $ &
sense. (making). so i lost interest.

but the way i see it...the "offers" belong to a member @ one
time that brought direct. i think the majority knows what they
paid...& when i apply that logic to what we own.....i know
i would not "give"/accept such a low offer for something
that has a higher buyer.

the other rule i used in our purchase, is deciding what is right
for us....regardless the popular opinions.

 

[PCMama]

maybe, just maybe ...the reporting isn't accurate.

fyi~ when i first came here ( not the dis but the dvc section)
i was interested in all the postings great deals. but when i
compared the claims with what was being offered by
the tss store, there were major differences in $ &
sense. (making). so i lost interest.

but the way i see it...the "offers" belong to a member @ one
time that brought direct. i think the majority knows what they
paid...& when i apply that logic to what we own.....i know
i would not "give"/accept such a low offer for something
that has a higher buyer.

the other rule i used in our purchase, is deciding what is right
for us....regardless the popular opinions.

Prices on TTS are just asking prices. I recently closed on a vgc contract that I offered at $14 ppt below asking.

 

[DisneyDiana]

I just sold a contract through TTS last week. Less than 10 hours after it posted I had a full price offer. I priced fairly and decided to wait for a full offer. Unless you want a larger contract or one is priced a lot higher than other comparable contracts I don't think there is much wiggle room right now.

 

[Chuck S]

Prices on TTS are just asking prices. I recently closed on a vgc contract that I offered at $14 ppt below asking.

Exactly! You make an offer, and the owner either accepts it or counter-offers. Just like any other real estate purchase.

If a particular owner is desperate to sell, or the points are in jeopardy for some missed payments or dues, it is likely they may accept a low ball offer to get out from under the debt. Or in some cases there may be an estate, divorce, or other legal issues that they want resolved quickly. You never know what the personal situation with a seller may be.

 

[SFlaDisneyfans]

Prices can't be painted with a single paintbrush either way. Neither are all the deals people post or all the asking prices listed in sites gospel. I am sure there are deals at prices people don't post and I am sure some contracts sell for much less than listed. I noticed one day someone selling a resale BLT contract for 160$ pp. I am gonna go out on a limb and guess it won't sell for asking price. Our contract at SSR ended up 4$ less than asking. After an offer and counter we agreed on 64$.

It was not our first attempt, we had been rebuffed on previous contracts as those sellers wanted asking price only. As in most things, if you are willing to sit back and wait you can save yourself money. Don't be afraid to make reasonable offers. The biggest thing we used the ROFR thread for was to help us establish in our minds what a reasonable offer ballpark was.

 

[debedo]

When we purchase a dvc resale, it lists the month which begins your usage year. Do we have to book out vacation in that month or can we book out vacation any month?

 

[BLTtinkerbell]

When we purchase a dvc resale, it lists the month which begins your usage year. Do we have to book out vacation in that month or can we book out vacation any month?

You can go anytime you want. Book home resort 11 months before trip, other DVC resorts 7 months before trip.

 

[debedo]

Thanks BLT tinkerbell! Appreciate the quick reply.

 

[nd43]

I do think some resale buyers get tunnel vision on the initial "deal". They will get tied up trying to save $3 to $5 on a resale contract that equates to a few hundred dollars to sign up for a timeshare that has a long term maintenance commitment that will make that amount almost meaningless.

I am all for getting the best deal. However, do not lose the big picture, the few dollars difference per point in upfront cost is almost nothing compared to your long term maintenance cost plus overall vacation cost (travel, tickets, food, etc.) to use your points. If a few dollars per point upfront is making this a "bad deal" for you, you might question buying the long term timeshare at all.

To me, you need to be saving in the thousands upfront (like direct vs. resale) to move the long term needle on total cost of ownership considering all the other costs involved in maintaining and using your points.

Just a different perspective.

 

[crisi]

Prices have also climbed fairly quickly - they haven't been stable. A deal that passed ROFR last week is a month old already - the posts from the beginning of that thread were deals offered up in June - and if you go back a thread, its pretty pointless at the rate the prices have been climbing.

I agree with nd43 - don't get lost in the initial deal - especially if you "need" the points for a trip in the next year. It will be at least six weeks between offer and being able to make a reservation - more likely close to three months - if you add three months of trying to save yourself $300 or $500 on a contract, you may miss the boat on your next vacation. The costs in your Disney vacation - not just your ownership, but tickets, food, travel - over your ownership is going to make a few hundred - even a few thousand dollars seem paltry.

 

[DrewJB]

I can understand the point about the ROFR being a "bragging" board to a certain degree - people are excited to share low priced deals, but it was easily the most useful resource to me when shopping around. I'm sure that the average price posted there is lower than the actual average - but I don't see why that really matters. These are actual negotiated prices and deals that people are getting so I see no reason to think you can't get deals at those prices as well. If you are serious about purchasing, the key is checking the listings every day (maybe twice a day) and being ready to make an offer immediately. The deal I found was posted in the evening and I made an offer at 9AM sharp the next morning when the Fidelity reseller office opened. If you wait on a deal it will go away, but there are plenty of deals to be had for those who are both patient and persistent.

 

[super mike b]

You can go anytime you want. Book home resort 11 months before trip, other DVC resorts 7 months before trip.

I just don't get where this is a good program. I could see booking a cruise that far in advance, but not a trip to the parks. DVC would never work for me.