Adding on via resale: one or multiple contracts?

[renchick]

We currently have three AKV contracts (purchased direct). We’ve stayed at SSR, BWV, and BCV, and enjoyed them all. VWL and OKW stays are in the plans for 2013. I’m comfortable with the potential of having multiple use years, as well as managing multiple contracts.

I’d like another 230 points, which I want to purchase resale. My intention is to maximize savings on these additional points, and use them either at their respective home resort(s), or another on-property DVC villa. I prefer an earlier-expiring contract for additional points we purchase.

That said, I’ve been looking at the various resale sites for several months, and have yet to find a good contract for our needs. I think this may be because 230 points is a rather unusual number. I would not mind comprising these 230 points from more than one contract, but the closing costs on multiple contracts (rather than just one) would negate a good amount of savings (seems as if a 100 point contract’s price would rise by $4+ per point when adding in closing costs).

Which was all very long-winded to get to my question: how common is it for the sellers to pay closing costs? And if they do, does this have an effect on how much bargaining can be done on the per-point cost? I’ve read and re-read the “Anyone made it through (or not made it through) ROFR recently?” thread, and see no rhyme or reason to this. Am I better off waiting for a magical 203-point contract, or would I be better off with the multi-contact, seller-pays-closing route?

I’d appreciate any insight into this.

[bighoo93]

Originally Posted by renchick

That said, I’ve been looking at the various resale sites for several months, and have yet to find a good contract for our needs. I think this may be because 230 points is a rather unusual number. I would not mind comprising these 230 points from more than one contract, but the closing costs on multiple contracts (rather than just one) would negate a good amount of savings (seems as if a 100 point contract’s price would rise by $4+ per point when adding in closing costs).

Which was all very long-winded to get to my question: how common is it for the sellers to pay closing costs? And if they do, does this have an effect on how much bargaining can be done on the per-point cost? I’ve read and re-read the “Anyone made it through (or not made it through) ROFR recently?” thread, and see no rhyme or reason to this. Am I better off waiting for a magical 203-point contract, or would I be better off with the multi-contact, seller-pays-closing route?

I’d appreciate any insight into this.

Are you looking for 230 points or 203? From what I have seen, 230 may be somewhat uncommon, but 203 will be exceedingly rare (I did see a 271 point contract for resale). Anyway, I'm not clear on why the points have to be precise. Do you really need that exact number? Because you will find many contracts in the 200-250 range.

As far as sellers paying closing costs, I don't know how that specifically works in DVC contracts, but the general principle should hold: money is money. If closing costs are $500 on a 250 point contract, there is really no difference between you paying $50 per point and closing costs, or you paying $52 per point and the seller paying closing costs. So I would suggest that rather than trying to find someone to pay the closing costs, that you simply worry about the total cost. Two lower point contracts are going to cost more than one higher point contract because of the double closing costs AND because there is higher demand for them so the price gets pushed up. A 100 point contract will typically sell for more than half the per point cost of a 200 point contract. But just factor in the total cost and decide whether the extra expense is worth it to you.

[DannysMom]

Which resale company websites have you been checking? I seem to recall that Fidelity had a number of 230 pt OKW contracts on their site recently.

Sent from my iPad using DISBoards App, please excuse any typos.

[KAT4DISNEY]

I also think 230 is a fairly common contract size for OKW. But I'd have an acceptable range, like 220-250 and see what can be found.


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[disneynutz]

We had 2 different UYs across 26 contracts and I recommend 1 UY. It can be done but why go through the extra work and possible problems?

The seller pays the sales commission and the buyer pays the closing cost because they are getting the benefit of the title search. Everything is negotiable, we have paid discounted commissions and discounted closing fees.

Smaller contracts have additional costs when selling but we just sold several, longest took 3 days and all sold at a price higher than other larger contracts at the same resorts. Should your vacation patterns change, which they probably will, you can adjust your contract holdings without having to sell a 230 pointer.

Bill

[DisDad07]

We have 2 contracts at AKV and then bought 210pts at OKW. with same UY. This works out great. OKW is a nice place to stay and the last time we went down we got a Grand Villa at OKW and had a lot of room for the 7 of us. We have ths same UY and it seems like work some times, I can't see why you would want 2UY's unless it works better for you. There have been a few 210 points at OKW out there for about $56 pt , but $53 seems to get the gob done IMHO. Good luck in finding what you wish for.

[cz4ever]

Originally Posted by renchick

We currently have three AKV contracts (purchased direct). We’ve stayed at SSR, BWV, and BCV, and enjoyed them all. VWL and OKW stays are in the plans for 2013. I’m comfortable with the potential of having multiple use years, as well as managing multiple contracts.

I’d like another 230 points, which I want to purchase resale. My intention is to maximize savings on these additional points, and use them either at their respective home resort(s), or another on-property DVC villa. I prefer an earlier-expiring contract for additional points we purchase.

That said, I’ve been looking at the various resale sites for several months, and have yet to find a good contract for our needs. I think this may be because 230 points is a rather unusual number. I would not mind comprising these 230 points from more than one contract, but the closing costs on multiple contracts (rather than just one) would negate a good amount of savings (seems as if a 100 point contract’s price would rise by $4+ per point when adding in closing costs).

Which was all very long-winded to get to my question: how common is it for the sellers to pay closing costs? And if they do, does this have an effect on how much bargaining can be done on the per-point cost? I’ve read and re-read the “Anyone made it through (or not made it through) ROFR recently?” thread, and see no rhyme or reason to this. Am I better off waiting for a magical 203-point contract, or would I be better off with the multi-contact, seller-pays-closing route?

I’d appreciate any insight into this.

In general, larger contracts are slightly cheaper per point, plus closing costs will be higher for two (or more) smal contracts than one larger one. As for your questions.

1. For the three contracts I've negotiated, I had the seller pay full MF on two of them, and would have for the third except the asking price was so insanely low and it was OKW that I offered to pay MF in an unsuccessful attempt to keep the ROFR monkey from chowing on it. I think the advice of bighoo93 is spot on -- money is money. It doesn't matter if the line on the closing document says "Amortized maintenance fees" or "Selling price". You should only be worried about number at the bottom, "Net amount due from Buyer".

2. I'm curious about the precision in your point requirement. Get one that is close to your target and adjust your room choices/dates and/or bank/borrow as needed. Since DVC can adjust point costs, it's unlikely that you'll budget perfectly, but you can easily adjust by renting in or out points from time to time... or staying one extra/one fewer night every N years.

If it were me, I'd look for a contract that was roughly the size I'd like in the UY I'd like, but not wait for the perfect match.