DVC Resale Question

Discussion in 'Purchasing DVC' started by ScottakaMickey, Jan 21, 2007.

  1. ScottakaMickey

    ScottakaMickey DIS Veteran

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    I certainly understand supply and demand, but am curious why resales of points are selling at their equivalent prices for when the original purchase was made at Disney, I.E. 100 points at $90/pt original purchase is reselling at $9000, which would be the original price. My question comes in that since this is a fixed contract for 50 years and there are only 35 years left would there be an expectation that due to the usage the value would go down?

    Again, yes it appears that this is true because of supply and what Disney calls right of first refusal which obviously keeps the prices higher. But obviously someone buying a resale is getting less for their money then the original purchaser, so wouldn't one expect a lower cost.

    Any thoughts?
     
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  3. Deb & Bill

    Deb & Bill DVC-Trivia Contest, Apr-2006: Honorable Mention

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    We bought our first 175 points at about $50 a point directly from Disney. OKW points are selling for $78+ a point now. We could make a little cash if we decided to sell them. But we won't.

    DVC is probably the only timeshare that appreciates instead of depreciates.
     
  4. starbox

    starbox "There is more treasure in books than in all the p

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    Well, sort of. Disney has fixed end years on the leases, so it's not like a person could get longer use if they bought directly from Disney.
     
  5. Pennyguy23

    Pennyguy23 DIS Veteran

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    Disney doesn't have anything for sale at 90$ a points but if you feel that you are getting less for your money you can buy SSR which is 101$ a point but I read somewhere that someone got the F&F deal still for 86$. Which ended1/20.
    If you want a sold out resort you have to pay the price. I hope in 35 Years I will be rich enough to not care that my contract ended and just buy more. But then again I am young so I bought SSR for the extra 12 years.
     
  6. JimMIA

    JimMIA There's more to life than mice...

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    I think you answered your own question. Resale prices are what they are because of supply and demand, which is supported by ROFR.

    If someone wants to own DVC, they either pay the "new" price at SSR, or they pay a price on the resale market which is high enough to clear ROFR. Which option is better depends on the individual situation of that particular family -- there is no cookie-cutter "best answer."

    We often see prospective buyers who try to grind the last nickel out of a resale price and end up losing the contract to ROFR. We can try to caution against doing that, but we can't stop them from self-inflicted disappointment.

    The prices are what they are. We can hypothesize all we want, but reality is reality...whether or not it's fair.
     
  7. ScottakaMickey

    ScottakaMickey DIS Veteran

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    All,

    Thanks for the replies.

    Deb & Bill - That's interesting, I was under the impression, wrongly so, that your original $50 purchase would have to be resold at that value. So, I definitely agree that there is a huge appreciation in this timeshare.

    Starbox - I was only implying that since what everyone is purchasing ends after 50 years, that to me means that for whatever price you pay you get less usage, so as prices go up the usage goes down. I know that with SSR, and maybe others, there 50 years is out further then the original DVC's.

    Pennyguy - Yea, I passed on the SSR $15 discount as I didn't want SSR as my home resort, so I guess if I want a different resort I'll have to pay the premium. I know Disney does do resales, not sure how they are priced.

    Jim - I agree, I was just curious how others felt and it appears that all are comfortable with the prices.

    Again, thanks to everyone and have a great Disney Day!!

    Scott
     
  8. dianeschlicht

    dianeschlicht <font color=blue>DVC-Trivia Contest, Apr-2006: Hon

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    BUT....you do not HAVE to have SSR as your home resort. Disney will sell any of the DVC resorts as a home resort if you don't want SSR. If, however, you are wanting to pay less than Disney's going price, you will have to deal with the resale market and ROFR. We purchased 10 years ago at $62 a point. I could sell now and probably get around 80 a point, even though there are "only" 35 years left on the lease. In 35 years, I'll be 95, my "kids" will be between 60 and 70, and I wont care!:)
     
  9. LisaS

    LisaS DIS Veteran

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    BCV, BWV and VWL are $95/pt, OKW, VB, HHI are $92/pt. Disney charges nonmembers about $200 in closing costs. Dues for the first year are pro-rated from your purchase date.

    I wouldn't say we're comfortable with the prices (I would be more comfortable if they were cheaper!) but I would say we accept that this is the way it is. Resale is generally cheaper (except for BCV) but Disney's ROFR sets the prices so there are no great deals to be had.
     
  10. greenban

    greenban DIS Veteran<br><br><img src="http://www.wdwinfo.co

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    Another POV, which is off the top of my head, I didn't really do the numbers to prove this statement, but someone here will!

    Even though the DVC's days are counting down (less remaining time), everday (okat every year) DIsney's rackrates go up. And right now with a strong travel industry, great discount codes are coming out later if at all.

    So even with increasing Maintenance Fees, the savings by staying at DVC on DVC points are increasing faster than the increasing maintenance fees.

    This is not the only reason, not even the primary reason, but I believe it is a valid reason.

    If I remember correctly, in 1977 a night at the contemporary was $27.00. A night at OKW starts at 8 points in 1994 and is still 8 DVC points in 2007.

    YRMV!

    -Tony
     
  11. Mtnman44

    Mtnman44 DIS Veteran

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    It's pretty simple. People are willing to pay a little more each year for DVC memberships. The value in the market place has increased. Contract years remaining do go down but the value of what's left continues to increase due to the rising cost of staying on property and the scarcity and demand for disney resort rooms in general.
     
  12. DisDaydreamer

    DisDaydreamer I have this DIS-ease

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    Agreed... I used to watch the prices go up and think... wow, what a good investment, but at some point I realized that we'll never sell our points, so I really wish the prices would stay down so I can buy more.

    I guess if DW was in jail and I had to sell the points to bail her out I would, but that's about the only situation. Baad girl! :mad:
     
  13. Mtnman44

    Mtnman44 DIS Veteran

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    You would bail her out????? ;)
     
  14. KingOMiami

    KingOMiami Mouseketeer

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    ROFLMAO!!!!:rotfl2: :rotfl2: :rotfl2:
     
  15. KingOMiami

    KingOMiami Mouseketeer

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    TO me, I think the benefit of buying resale over buying through Disney is being able to buy a smaller contract. Since Disney forces you to buy a minimum 150 point contract to start off with, it makes it hard even if you are on a fixed budget. With resale, you can try to get whatever you want, provided it passes ROFR.

    That is why DW and I are looking at different resales now. When the time comes that we have the money to buy a larger contract, then we would most likely do it through Disney
     
  16. JudyTL

    JudyTL Mouseketeer

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    Diane,

    Disney will sell any of the timeshares to first time buyers. They just need to buy 150 points. They do not care if you have SSR.

    I was told I could do it.

    Judy
     
  17. DebbieB

    DebbieB DIS Veteran

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    Selling a DVC resale is like selling a house, you put up an asking price and see what you can get. You can put up $90 but that doesn't mean you will get it.
     
  18. Figment2

    Figment2 DIS Veteran

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    Scott - Mary & I want to know if we'll be able to say "welcome home" soon?

    See you in May!!

    Cyn
     
  19. ScottakaMickey

    ScottakaMickey DIS Veteran

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    Cyn,

    I do this every once and while where I go and get serious out about DVC, but then over time realize that my usage would require a much higher point count then I want to invest. So, we stop and dont do it. This time we are thinking about getting a few points, 100 or so, just to have and if we use them great, if not that is OK.

    We are staying at OKW for the Pirates Event in May, so that will be a good time for us to experience it further.

    Hope to see you guys.

    Scott
     
  20. gonegolfin

    gonegolfin BWV '99

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    To be more accurate, I would say appreciates in terms of the US Dollar. Which has been declining at a discomforting rate. I would not say that DVC has appreciated in terms of purchasing value.

    Brian
     

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